15 Best HRMS Software in India 2025: Features & Pricing

The most essential task of the best HR system is to help automate and streamline HR tasks and processes. However, modern human resource management software goes a step further and helps HR actively improve their processes thereby leading to overall improved efficiency.

Additionally, due to automation, HRs have more time for implementing strategic plans for improving employee engagement. With the help of HR management software, HR personnel can gain the ability to reduce a lot of time and effort associated with every administrative task.

It is especially useful for small and medium-sized businesses as it provides enhanced features per employee, making it feasible for them.

As a result, all software includes leave and attendance management, HR and payroll management, salary calculations, employee management, expense management, sending offer emails, generating payslips, developing custom reports, performance management, and expense management.

Studies show that there is a 36% improvement in management workflow after the implementation of core HR software.

With the growing complexity of the HR departments, there is a rise in the number and scope of statutory compliance that the company must comply with. It is especially relevant for small and medium sized businesses, as they need to adhere to each regulatory statute for compliance.

An HR department is the one that ensures that the business complies with the multitude of employment-related legal regulations. With the help of an HR solution, HR no longer needs to manually ensure these compliances since the software remains updated even with the latest changes.

HR managers also gain the ability to use the reporting modules to monitor and report on compliances actively. It ensures that the company is safe from any penalties and lawsuits that would have proved costly for the organization.

Companies with advanced HR software often have a lot of excellent features for improving employee engagement, which results in a productive and loyal workforce.

Features like anonymous surveys, sentiment analysis, feedback management, etc., help an HR team understand the common of the employees towards their companies.

Modern HR solution is also equipped with an employee self-service (ESS) portal that helps employees undertake their employment-related tasks with ease.

Moreover, as most HR software is cloud-based, they also get the ability to access it from anywhere using any smart device and complete their tasks. This kind of accessibility ensures that the employees remain engaged with the company for longer.

Employee time and attendance management is a critical aspect of HR management as its accuracy directly ensures the accuracy of the employee salaries.

Hence, time, attendance and leave data should be recorded and maintained with the utmost precision. A single error in the time off and attendance database could result in huge mistakes in payroll processing that could prove costly to correct down the line.

As a result, newer HR software comes with time and attendance management baked into it with biometric-attendance systems.

Such systems can help employees mark their daily time and attendance and correct them if required. Additionally, it also helps in remotely punching the attendance as the system can be accessed remotely.

With the help of HR software, the HR department gets access to a massive amount of data that proves helpful in developing strategies for employee management and engagement.

It results in better overall decision-making as the analytical performance management data helps the team develop better plans for their workforce.

For example, it can provide in-depth insights into expense management and payroll processing, making it easier to manage company expenses.

Since the HR team has more time on their hands, they can develop better strategies to improve their work experience and workforce morale. It is especially relevant to for small and medium sized businesses as they have a limited workforce.

Since the HR software takes care of compliance management and report generation, the HR personnel can work on other aspects of the organization that would help improve the overall employer branding.

Data Integrity is a significant issue in the HR industry which is eliminated by deploying an HR software. An HR software ensures that the employees have access to only the relevant section of their data. It is accomplished with the help of ‘usage access’ that is defined according to their roles in the organization.

Separating the access in this manner helps create a level of abstraction that ensures that the data is not visible to everyone. For example, a manager would be able to view the performance management data of the employees working under them.

At the same time, the HR department would have edit access for the same data. Such measures ensure that there is no malpractice in the company.

Additionally, if any discrepancy is found in the data, it becomes easier with the help of HR software to narrow down its source.

Modern HR software provides multiple options to generate various kinds of reports for your HR. Since these systems can measure multiple metrics, they have the necessary tools for advanced data analysis and reporting.

The data obtained from the HR software proves instrumental in developing future strategies for the employees and the organization.

Additionally, the HR department also has access to various real-time data that helps make quick decisions whenever required.

With such easy access to the organizational database, the HR personnel can easily correlate various metrics such as performance management metrics, to the company’s business goals, thereby optimizing the HR team for further improving their efficacy.