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Top 10 Benefits of HR Software for Your Business


Human resources might be underrated in an organization, but it is easily one of the most important wings of any enterprise.

How do you run a company without your employees? How does a non-people-centric organization function at all?

Startups and small and medium enterprises have to handle numerous tasks while focusing on expansion and development.

This juggling of daily tasks might come in the way of larger business goals for companies.

This is where HR software comes in. Its services are ideal for small and medium-sized companies to tick several goals at the same time.

Before looking at how HR software systems can benefit your company, let us understand the basics.

HR Policies in India

Human resources might be under-rated in an organisation, but it is easily one of the most important wings of any enterprise. How do you run a company without your people? How does a non-people-centric organisation function at all? It is challenging and a daunting task if you do not have the quintessential HR policies in India given that people form the most substantial chunk of the asset that a company has.

HR policies are fabricated keeping in mind the labour laws a country follows and the interest of the company. It is crucial that the guidelines are followed to the point and not messed with. It is more or less a symbiotic relationship that ensures that the policies formulated to benefit both the company and the people who work for the same.

What does Human Resources do?

Human resources or HR refers to the department in the organization that handles all employee-related operations. The HR department handles all processes in an employee life-cycle. Some common HR tasks are:

  • Finding talented candidates
  • Testing their eligibility
  • Recruiting and onboarding
  • Training employees
  • Tracking attendance, leaves, and requests
  • Organizing employee-benefit programs
  • Tracking employee performance

The human resources department is in charge of increasing employee productivity and staying updated with any rules and regulations that the company needs to follow. Their main functions are:

  • Managing human capital effectively
  • Coming up with strategies to increase performance
  • Analyzing objectives and key results (OKRs)
  • Organizing work processes to yield the best results
  • Involve technology into human capital management to improve communication and core HR processes

HR manager or HR professional oversees a majority of these roles. They hold unique power over the company due to their involvement in nearly all operations. You can learn more about the functions of the HR department in this blog.

Now that we know the roles of an HR manager or the HR department, let us understand what HR software means.

HR software is an ideal tool for simple, effortless HR management. It empowers a company with access, management, and automation of various employee life cycle processes.

The tool also takes care of the complete payroll system of an organization and automates all payroll-related processes. When you opt for smart software solutions, you can do away with bulky files of documents and salary slips.

You can view and address complex taxes, deductions, funds, benefits, loans, and other financial issues in this user-friendly payroll software.

The best part of an HR management platform is that it helps in reducing the number of manual tasks that the human resources department has to perform. This, in return, reduces the possibility of human errors.

For a detailed overview check out this guide on HR Software & How to Choose the right HR Software for your business.

Now that we are clear about what HR software is and the functions it is supposed to perform, let us understand how it can benefit SMEs and startups.

1. High Efficiency and Productivity

HR managers can take a huge breather due to human resources software tools. This way, they can utilize this time to complete other tasks such as planning team-building activities or workshops.

The major focus of HR managers shifts from the complex and mundane HR processes. More time and focus on other core HR work means that they automatically become more productive and efficient.

2. Error-free Calculations and Information Storage

We all know that human errors can sometimes result in serious complications, both financial and legal. When you use software to manage all your HR processes, the chances of human errors are eliminated by 99.99%.

The software does calculations that are automated and provide accurate figures*. Right from the payroll information to salary release to tax deduction calculations, the software automates everything. This reduces the chances of errors.

3. Less Stress

Another obvious benefit of using a software platform is that it frees up your HR managers from the stress and mundane daily HR workflow activities. And as mentioned above, less stress will make the HR managers more efficient and productive.

A software solution removes the need to perform time-consuming redundant tasks. Your employees can now save their valuable time spent going through masses of paperwork for each HR function.

So, you can make daily operations much calmer and stress-free with HR software.

4. Cost-saving

Bigger businesses need to hire multiple HR managers to form an entire department looking after complex HR chores. Salaries and retention costs of all these managers become a monthly liability.

Single comprehensive management software can handle the role of all these employees. It also needs just one individual to oversee it. This way, you have to invest in hiring one professional and the cost of the software.

These expenses combined are still less than the cost of hiring and retention of multiple HR managers.

5. Easily Available Information

When HR managers or any other professional in the company need particular information, the traditional way to get it relies on files, documents, and spreadsheets.

Accessible software is loaded with employee databases and employee info. This cuts the wild goose chase needed to extract information.

6. Time-saving Onboarding Process

We all know that the employee onboarding process consumes a lot of time for the HR manager. There are a lot of steps taken to train new hires, depending on each company.

So, if you stick to manual onboarding, that will mean that your HR manager will be drowning in applications, training meetings, and checklists when you need to hire a new worker.

By selecting an onboarding suite for your company, you can track the progress of new hires, assign policies to them online and build unique sessions including training videos and welcome messages from the CEO.

7. Accurate Evaluation and Appreciation

It is difficult to overlook the performance of our employees. This may lead to appreciating and rewarding them inadequately. This may further lead to a reduction in employee engagement.

Using software helps in solving this problem. A dynamic software monitors the performances of each employee and evaluates them from time to time. It also provides results that will help you reward the best performing employees rightly.

This improves employee engagement as recognition can boost the morale of any individual. A software solution helps HR managers in being present for their employees at all times.

By recognizing efforts and answering queries instantly, you can improve employee productivity in the workplace and keep them happy.

8. Secure data

If you have kept all your company and employee details in file cabinets, how secure is your data? Anyone who has the key can access your valuable information.

The data entered in online portals are as secure and safe as the database of a bank. Only limited and authorized people can access vital data.

Most portals have the option of role-based access. This means that only the admin or supervisors of teams can overlook this sensitive data.

The security offered by vendors also extends to employee self-service portals. Workers can enter data, access company policies, look at their attendance data, and request leaves. However, they will not be able to look at sensitive records.

9. Customizable features

Software providers can offer you a plethora of features in their package. However, different companies have different requirements.

This is one of the best advantages that software providers are willing to offer.

You can pick the applications that you want to integrate into your system with ease. Be it an onboarding suite or an HRIS database and analytics, you can select the modules that your organization needs the most.

10. Cloud-based system

cloud-based HR software system can have a wide range of benefits for companies.

Firstly. it allows remote workers and people working from home to log-in from anywhere, on any device. The software is not hosted on a single server in an office. Be it, on-field workers or employees, in global locations, this feature makes all portals accessible to everyone in the company.

Secondly,  a centralized system like this allows all the essential data to be stored in a single secure place. Although you can access this data from anywhere, you will never have to scramble onto different portals to get what you need.

Finally, you can make important business decisions in a more insightful manner. With access to versatile data from different suites, you have all the analytics you need to form business strategies.


Growing businesses can overcome their challenges with HR software. Everyday tasks can be performed in simple and hassle-free steps using an intuitive system that is people-centric in nature.

While you might be looking for the best software systems for your company, it might get a little overwhelming to arrive at a conclusion.

HR software in India is a huge industry, with a plethora of vendors offering a variety of modules in their package.

To make your process easier, we present to you sumHR’s people-oriented HR software. Our system helps you break-free from mundane processes and focus on activities that benefit you as an organization.

We offer a range of modules starting from an HRIS database to a performance management suite.

Check out our website to understand the different HRMS modules we offer or try them out with our all-inclusive 7-day free trial.

If you’re still unsure, book your free demo here or just contact us at 7718873528.

If you have any comments drop them down in the comment section and I will surely answer them.

Frequently Asked Questions

1. Why is HR software so important?

HR software is essential for any organization. It saves time and effort by automating complex HR processes. It allows the HR department and employees to focus on company objectives and implement strategies to reach them.

The business can also focus on expansion and development rather than hiring and training HR professionals to go through cumbersome paperwork. By making HR activities more efficient, there is more scope for holistic development in the company.

2. What are the 7 major HR activities?

There are some core HR processes that can be divided into 7 major activities. These activities form the various modules provided by HR software.

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We’re on a mission to elevate HR teams to HR Heroes, one SMB at a time.

sumHR is an all-one HRMS Platform to automate all HR Processes. With sumHR, create a tasteful employee experience, track attendance & leaves, setup & manage payroll, definie & monitor goals, generate & schedule reports, and so much more. We’re on a mission to improve the impact of HR teams in SMEs across India.

Our comprehensive end-to-end HRMS includes

<small style="font-weight:400;font-size:16px;">Written by</small><br>Team sumHR
Written by
Team sumHR

SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.

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