6 Reasons to Invest in HR-Based Software

HR functions has been slow to embrace the new technology, especially SMEs. The role of HR has shifted from administrative functions to managing the people of the company. This has given rise to the need of HRMS software to improve and streamline the management of employees’ activities. An HR-based software will automate the management of human resource functions and activities of an organization. HR solutions assist in keeping your employees’ record, gathering metrics of recruitment, performance management, compensation benefits etc. Let’s have a look at the six important reasons for owning an HR management software in your organization.

Record of Employees

Be it a large organization or a small business, it is important to record the details of employees at one place. HR system makes this possible by creating an employee directory where you can store the details of all the employees. You can thus get details of an employee at any point of time including contact number, bank account number, address of the employee etc.

Attendance Management

An HR software will help you to set attendance requirement and time-off policy for your organization by setting up working days in a week. This helps you to track time and attendance. It can also integrate with the biometric system, which would take all the check-ins done by the employees.

Payroll and Compensation

HR software will help you in calculating and managing employees’ salaries, bonuses and compensations. It also calculates withholding for taxes, cuts paychecks and offers integration with banks for deposit of salaries.

Leave Management

Employees’ leave management is a crucial aspect of HR. An HRMS software will help you to keep a track of the amount of paid leaves, unpaid leaves, and sick leaves your employee is entitled to take. You can come to know the balance of leaves of each of the employee, by eliminating the chances of human error.


An HR system will assist in efficient recruitment from online registration and sending of applications to the company, to employees’ recruitment. It can also integrate with other functions of the HR and perform background checks.

Performance Management

Performance management ensures that employees are continuously improving in their work. It is important to capture various data points throughout the appraisal cycle for an efficient performance review. HR solutions would automatically record the employee performance throughout the year.

Regardless of the size of your organization, getting an efficient HR management software on board that integrates with your existing operations and systems is preferable. A good HRMS software also has employee engagement tools and support of mobile technology to encourage collaboration among employees. Employee self-service portal eliminates the need of HR intervention and employees can use it to enter leaves and check their records. An HR software enables better record management without the need of constant vigilance. HR information system thus improves the overall productivity of the HR department, saving its useful time and streamlining its entire workflow.

Gargee Goswami

Gargee Goswami is a self-confessed bibliophile who loves to write in her free time (the little that she gets). Having vast experience of 6+ years, she counts tea, travel and food as her life's great passions.

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Gargee Goswami

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