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What is the best HR software in India?

There is no one-size-fits-all answer to this question, as the best HR software for a particular business will depend on its specific needs and requirements. However, some of the top-rated HR software solutions in India include:

  • Keka HR: A cloud-based HRMS solution that offers a comprehensive suite of features for businesses of all sizes.
  • GreytHR: Another popular cloud-based HRMS solution with a focus on automation and employee self-service.
  • Zing HR: A cloud-based HRMS solution that is known for its ease of use and affordability.
  • Zoho People: A cloud-based HRMS solution from Zoho Corporation, which is known for its wide range of integrated business applications.
  • PeopleStrong: An on-premise HRMS solution that is well-suited for large enterprises with complex HR needs.

Top HR software companies in India 2024

In addition to the HR software providers mentioned above, some of the other leading HR software companies in India include:

  • BambooHR: A cloud-based HRMS solution that is popular among mid-sized businesses.
  • Darwinbox: A cloud-based HRMS solution that is known for its innovative features and strong customer support.
  • Saral PayPack: A cloud-based payroll solution that is popular among small businesses.
  • Zimyo: A cloud-based HRMS solution that is known for its focus on employee engagement.
  • HROne: A cloud-based HRMS solution that is well-suited for businesses in the healthcare industry.

Features to look for in HR software for Indian businesses

When choosing HR software for your Indian business, there are a few key features to look for:

  • Compliance with Indian labor laws: Make sure the software is compliant with all applicable Indian labor laws, such as the Payment of Wages Act, the Factories Act, and the Employees’ Provident Funds and Miscellaneous Provisions Act.
  • Multilingual support: Choose software that supports multiple languages, including Hindi, English, and other regional languages.
  • Mobile compatibility: Ensure that the software is mobile-friendly so that employees can access it from anywhere.
  • Integration with other business systems: Choose software that can integrate with your other business systems, such as your ERP system and your payroll system.
  • Scalability: Make sure the software can scale to meet the needs of your growing business.

Is cloud-based HR software suitable for Indian companies?

Yes, cloud-based HR software is a good option for Indian companies of all sizes. Cloud-based software is typically easier to implement and maintain than on-premise software, and it can be accessed from anywhere, which is important for businesses with remote employees. Additionally, cloud-based software providers typically offer regular software updates, which can help to ensure that your business is always compliant with the latest Indian labor laws.

Comparison of HRMS vs. HCM software in the Indian context

HRMS (Human Resource Management System) and HCM (Human Capital Management) are often used interchangeably, but there are some key differences between the two. HRMS software is typically focused on operational HR tasks, such as payroll, attendance, and benefits management. HCM software, on the other hand, is more strategic and focused on helping businesses to manage their talent and improve employee performance.

In the Indian context, HRMS software is typically a good choice for small and mid-sized businesses that need a basic solution to manage their HR operations. HCM software is a better choice for large enterprises that need a more comprehensive solution to manage their talent and improve employee performance.

Affordable HR software for small businesses in India

There are several affordable HR software options available for small businesses in India. Here are a few of the most popular:

  • Keka HR: Keka HR offers a free plan for businesses with up to 10 employees, and paid plans start at just ₹1,999 per month. It is a cloud-based HRMS solution that offers a comprehensive suite of features, including payroll, attendance, benefits management, and employee self-service.
  • GreytHR: GreytHR also offers a free plan for businesses with up to 10 employees, and paid plans start at just ₹1,499 per month. It is another cloud-based HRMS solution with a focus on automation and employee self-service.
  • Zing HR: Zing HR offers a free plan for businesses with up to 5 employees, and paid plans start at just ₹999 per month. It is a cloud-based HRMS solution that is known for its ease of use and affordability.
  • Zoho People: Zoho People offers a free plan for businesses with up to 5 employees, and paid plans start at just ₹999 per month. It is a cloud-based HRMS solution from Zoho Corporation, which is known for its wide range of integrated business applications.
  • PeopleStrong: PeopleStrong offers a free plan for businesses with up to 10 employees, and paid plans start at just ₹1,499 per month. It is an on-premise HRMS solution that is well-suited for large enterprises with complex HR needs.

How to choose the right HR software for your company in India?

Choosing the right HR software for your company in India can be a daunting task. Here are a few factors to consider:

  • Your company size and needs: Consider the size of your company and your specific HR needs. If you are a small business with basic HR needs, a cloud-based HRMS solution with a free plan or a low-cost paid plan may be a good option. If you are a large enterprise with complex HR needs, you may need an on-premise HRMS solution with a wider range of features.
  • Your budget: Consider your budget for HR software. HR software can range in price from free to several thousand rupees per month.
  • Your compliance needs: Make sure the HR software you choose is compliant with all applicable Indian labor laws.
  • Your integration needs: Consider whether you need to integrate your HR software with your other business systems, such as your ERP system and your payroll system.
  • Your user preferences: Consider the user preferences of your employees. Choose HR software that is easy to use and that has a user-friendly interface.

Popular open-source HR software options in India

There are a few popular open-source HR software options available in India. Here are a few of the most popular:

  • OpenERP: OpenERP is a comprehensive open-source ERP system that includes HR modules for managing payroll, attendance, and benefits.
  • OrangeHRM: OrangeHRM is a dedicated open-source HRMS solution that offers a wide range of features, including payroll, attendance, benefits management, and employee self-service.
  • Odoo: Odoo is another comprehensive open-source ERP system that includes HR modules for managing payroll, attendance, and benefits.

Integration options for HR software with Indian payroll systems

Most HR software solutions can be integrated with Indian payroll systems. Here are a few of the most common integration options:

  • API integration: API (Application Programming Interface) integration allows HR software to connect with payroll systems to exchange data.
  • File-based integration: File-based integration involves exporting data from HR software to a file format that can be imported into the payroll system.
  • Cloud-based integration: Cloud-based integration involves connecting HR software and payroll systems through a cloud-based middleware solution.

Benefits of using HR software for compliance in Indian businesses

Adopting HR software can bring a multitude of benefits to Indian businesses in terms of compliance with labor laws and regulations. Here’s a comprehensive overview of the advantages:

  1. Streamlined Compliance Management: HR software automates many compliance-related tasks, such as tracking employee leave balances, generating statutory reports, and managing tax deductions. This automation reduces the risk of human error and ensures timely adherence to compliance requirements.
  2. Centralized Data Repository: HR software maintains a centralized repository of employee information, including payroll data, attendance records, and benefits entitlements. This centralized storage simplifies data access, facilitates audits, and ensures consistency in compliance processes.
  3. Real-time Compliance Monitoring: HR software provides real-time insights into compliance status, enabling businesses to identify and address potential issues promptly. This proactive approach minimizes the risk of legal penalties and reputational damage.
  4. Regulatory Updates and Alerts: HR software vendors regularly update their systems to reflect changes in labor laws and regulations. This ensures that businesses are always compliant with the latest legal requirements.
  5. Compliance Expertise and Support: HR software providers often offer expert guidance and support on compliance matters. This expertise can be invaluable for businesses navigating complex legal landscapes.

Mobile-friendly HR software for remote work in India

As remote work becomes increasingly prevalent in India, mobile-friendly HR software has become essential for managing a distributed workforce. Here are the key benefits of using mobile-friendly HR software for remote work:

  1. Accessibility and Convenience: Mobile-friendly HR software allows employees to access HR information and services from anywhere, anytime, using their smartphones or tablets. This accessibility enhances employee engagement and productivity.
  2. Self-service Features: Mobile-friendly HR software often provides self-service features, enabling employees to manage their own payroll, benefits, and leave requests. This self-service functionality reduces administrative burdens for HR teams.
  3. Real-time Communication and Collaboration: Mobile-friendly HR software facilitates real-time communication and collaboration between managers, HR teams, and remote employees. This real-time interaction enhances teamwork and improves operational efficiency.
  4. Performance Management and Feedback: Mobile-friendly HR software can be used to provide performance feedback, track goals, and recognize employee achievements. This continuous feedback loop helps remote employees stay engaged and motivated.
  5. Mobile-optimized User Interface: Mobile-friendly HR software features a user-friendly interface designed for mobile devices, ensuring easy navigation and intuitive operation.

Data security and GDPR compliance in HR software for Indian firms

Data security and GDPR compliance are paramount for Indian businesses handling employee data, especially considering the stringent data privacy regulations like the Personal Data Protection Bill (PDP Bill). HR software plays a crucial role in safeguarding employee data and ensuring GDPR compliance.

  1. Data Encryption and Access Controls: HR software should employ robust encryption techniques to protect employee data both at rest and in transit. Access controls should limit data visibility to authorized personnel.
  2. Regular Data Backups and Disaster Recovery Plans: HR software should implement regular data backups and disaster recovery plans to prevent data loss and ensure business continuity in case of emergencies.
  3. Data Privacy Training and Awareness: HR software providers should provide training and awareness programs to educate employees on data privacy best practices and GDPR compliance requirements.
  4. Data Breach Notification and Response Procedures: HR software should have clear data breach notification and response procedures in place to promptly address any security incidents.
  5. GDPR Compliance Assessments and Audits: Businesses should conduct regular GDPR compliance assessments and audits to ensure their HR software meets the necessary data privacy standards.

Customization options in HR software for diverse Indian industries

Indian businesses operate across a wide range of industries, each with its own unique HR requirements. HR software should offer customization options to cater to the specific needs of each industry.

  1. Industry-specific Templates and Workflows: HR software should provide industry-specific templates and workflows to streamline common HR processes and address industry-specific regulations.
  2. Integration with Industry-specific Tools: HR software should seamlessly integrate with industry-specific tools and platforms, such as production management systems for manufacturing industries or healthcare management systems for healthcare providers.
  3. Localization and Language Support: HR software should support multiple languages, including Hindi, English, and other regional languages prevalent in India, to ensure ease of use for employees across diverse industries.
  4. Industry-specific Reporting and Analytics: HR software should provide industry-specific reporting and analytics dashboards to generate insights tailored to the unique challenges and opportunities of each industry.
  5. Industry-specific Compliance Expertise: HR software providers should offer industry-specific compliance expertise and support to help businesses navigate the complex regulatory landscape of their respective industries.

How does AI play a role in HR software for Indian companies?

AI is rapidly transforming HR software, making it more intelligent, efficient, and personalized for Indian companies. Here are some key areas where AI is making a significant impact:

  1. Recruitment and Talent Acquisition: AI-powered recruitment tools are streamlining the hiring process by automating tasks like resume screening, candidate matching, and scheduling interviews. This automation frees up HR professionals to focus on more strategic activities like building relationships with candidates and assessing cultural fit.
  2. Employee Onboarding and Training: AI-powered onboarding systems are personalizing the onboarding experience for new hires, providing tailored recommendations for training courses, mentoring programs, and company resources. This personalized approach helps new employees acclimate quickly and become productive members of the team.
  3. Performance Management and Engagement: AI-powered performance management tools are providing real-time insights into employee performance, enabling managers to provide timely feedback and identify areas for improvement. AI can also analyze employee sentiment and engagement data to identify potential issues and take proactive measures to improve employee satisfaction.
  4. Skills Development and Career Planning: AI-powered skills assessment tools are helping employees identify their strengths and weaknesses and develop personalized career paths. AI can also analyze job market trends and suggest relevant training courses to help employees stay ahead of the curve.
  5. Compliance and Risk Management: AI-powered compliance tools are helping companies identify and mitigate potential compliance risks related to labor laws, data privacy, and workplace safety. AI can also analyze HR data to identify potential legal issues and take preventive measures.

AI is still in its early stages of adoption in HR software, but it is already having a significant impact on the way Indian companies are managing their workforces. As AI technology continues to evolve, we can expect to see even more innovative and transformative applications of AI in HR software in the years to come.

Challenges and solutions in implementing HR software in the Indian market

While HR software offers numerous benefits for Indian companies, there are also some challenges that businesses may face when implementing and using HR software. Here are some common challenges and potential solutions:

Challenge: Cultural fit and language barriers: Indian businesses operate in a diverse cultural landscape with multiple languages. HR software should be able to accommodate these cultural nuances and provide support for multiple languages to ensure ease of use and adoption.

Solution: Choose HR software that offers localization and language support for Hindi, English, and other regional languages prevalent in India. Partner with HR software providers who understand the Indian cultural context and can provide tailored solutions.

Challenge: Data privacy and security concerns: Indian businesses must comply with stringent data privacy regulations like the Personal Data Protection Bill (PDP Bill). HR software must ensure robust data encryption, access controls, and data breach notification procedures to protect employee data.

Solution: Choose HR software that meets the requirements of the PDP Bill and other relevant data privacy regulations. Implement data privacy training and awareness programs for employees to ensure responsible data handling practices.

Challenge: Integration with existing systems: Indian businesses may have legacy HR systems and other business systems that need to be integrated with new HR software. This integration can be complex and time-consuming.

Solution: Choose HR software that offers open APIs and integration capabilities to facilitate seamless integration with existing systems. Work closely with HR software providers to ensure a smooth and efficient integration process.

Challenge: Change management and employee resistance: Implementing new HR software often involves a change in processes and workflows, which may be met with resistance from employees.

Solution: Communicate the benefits of the new HR software clearly and involve employees in the implementation process. Provide training and support to help employees adapt to the new system and maximize its benefits.

Challenge: Cost considerations: HR software can range in price from affordable cloud-based solutions to more expensive on-premise solutions. Businesses need to find the right balance between cost and functionality.

Solution: Assess your company’s specific needs and budget constraints before selecting HR software. Consider cloud-based solutions for affordability and scalability.

Features to Look For in HR Management Software

With the advent of technology, apart from home-life becoming easier, work is also getting less monotonous, especially for HRs. Human Resource Management Systems which are used by almost all organizations is an example of simplification of repetitive tasks in order to focus more on other important tasks.

There are a few features that are absolutely necessary for an HRMS. They are:

  • Employee on-boarding: When a new employee joins the organization, the process must be capable of starting off the on-boarding process. There must be a HR checklist that must be given for workflow to be easy.
  • Generation of Offer-Letter: With so many cases being taken to the labor court, the offer letter should be very specific. Software should be capable of generating the offer letter. It should also make the pre-arrangements and get the authentication and approval from the HR management.
  • Employee’s Database: Every single detail about the employee can be found in the HRMS. Details like name, project details, methods for communication, etc.
  • Managing Employee Attendance: The attendance system should be integrated with the HRMS. It should also leave possibilities for creation of a shift plan, turns in a shift, allocation of work and for marking attendance. The HRMS should also generate report based on requirement.
  • Leave Management: The software should be capable of managing the leave along with processing the leave application in a user friendly way. It should be accessible by the employee and easy to decide upon for the management. This way, it will be way to administer and manage at the end of the year.
  • Employee Roster Management: Roster apps are an important feature to manage complex rosters or scheduling of employees.
  • Performance Management: KRA and KPI Configurations should be done at the end of the assessment. Goals and objectives must be imported as well. MS and PMS lists as well as pending goals should be assessed.
  • Reimbursements and Claims: Slips and reports should be generated by the software.
  • Statutory Compliance: Payroll processing as well as the fixed and variable variants of the IP models along with the bank statement and pay slip generation should be done. The HR Software should also have the capacity to generate IT, Form 16, TDS and YTD by itself.
  • Managing the Timesheet: Project details should be included if possible. It should also have features to enter the number of hours spent on each project along with dates and time charts of the employee’s work.
  • Generation of the Report: Reports can be generated by making just one click. Reports can also be generated after customization. Parameters that are required can be selected as well.
  • Complete statement: ESS, Admin Process and MSS should separate they way that work flows and the software handles it. The software should also handle the employee who has been terminated appropriately with another checklist that is auto-generated.

Apart from all these features, the thing to really look for in an HR Software is how well it can be used by the employee. Self service is the most important feature of the HRMS. HRMS can make the job of both the employee and the HR easier with more accuracy and minimal probability of error.

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