HR software is one of the most critical tools for any small, medium, or large organization. Nowadays, several disruptive tools are available in the market to disrupt the HR industry, and management of the workforce is one of the most crucial tasks an HR is aligned with.
This overview helps you to kickstart your journey to select the best hr software in India. Stay tuned to get more useful insights into the whole journey. The links in the guide provide more details about your whole journey.
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What is HR software?
HR software provides a digital solution that helps companies to streamline their HR processes, including onboarding of a candidate, training, payroll, attendance management, and offboarding of an employee. It covers the complete lifecycle of an employee in an organization.
Earlier, HR software was only related to dealing with administrative tasks of HR, whereas today’s HR solutions cover all the basic and advanced needs of an organization. Earlier, these tools were only limited to the use of HR, whereas today’s advanced HR solutions benefit the employees of the organization the most.
Types of HR Software in India
HR software usually comes with several modules, each designed for a specific HR purpose.
These modules are defined by certain names.
- Human resource management system (HRMS)
- Payroll
- Performance management system (PMS)
Various terms are used as synonyms for the above-mentioned modules. These modules can be purchased separately depending on the needs of your organization.
- Basic HR (benefits, payroll, employee records)
- Employee management (compensation, learning, performance, recruitment, etc.)
- Management of workforce (Interview scheduling, even scheduling, time and attendance of employees)
- Final delivery of service (employee self-service portal, employee help desk)
Benefits of HR software
HR software offers numerous benefits to the organization as well as HR to streamline the HR processes of the organization.
Some of the benefits HR software provides are:
1. Digitalize the HR processes
HR software enables organizations to digitalize the HR processes such as resume parsing, interview scheduling of candidates, maintaining employee records, and communicating important information to employees.
2. Employee experience/morale
HR software plays an important role in improving the employee experience in organizations. Better employee experience helps to create a positive image of the organization in the industry.
For example- You are measuring the sentiment/mood of employees, connecting employees, and recognizing the efforts of employees.
3. Cost-saving
HR software helps organizations to save immense costs incurred in HR processes. It helps to save costs without compromising the employee experience.
For example- The rising cost of health insurance for employees is one of the major costs for organizations. To manage and keep track of these costs, organizations can opt for the best HR software in India.
4. Reduced human errors
Running payroll manually can result in several errors, which proves to be costly for organizations. Human errors can result in wrong taxation, which leads to ISR penalties for organizations. To save these costs, organizations can opt for the latest HR solutions.
5. Data Security
Managing HR processes manually can result in data breaches which prove to be very costly for organizations. To keep the data secure and safe, a company can opt for HR software, as this software has end-to-end solutions to encrypt data. According to a report by IBM, data breaches can cost heavily to the organization.
Tips for selecting the best HR software in India
Here are a few tips for selecting the best HR software out of a number of software available in the market:
1. Design a strategy to evaluate the HR software- An organization should design a strategy to evaluate which software will best suit their organization’s needs and goals
2. Assemble a team who will make buying decisions- A team of HR, IT, and Finance should be aligned with the task to test the software and make a buying decision as they will use the software.
3. Identify your requirements- An organization should make the buying decision in consideration of their major HR requirements. They must ensure that the software is compatible with organizational needs and compatible with employees.
4. Identify the potential vendors in the market- An organization should identify the potential vendors who are offering the best HR software in India. Out of these, they should list at least five potential software.
5. Send a request for a proposal to shortlisted vendors- A request for a proposal should be sent to the shortlisted vendors. It should be clear and concise and should include information about the needs of your organization.
6. Request a demo- You should request a demo from three to four organizations and compare their modules, features, pricing, and customer support. This is the most important way to select the best HR software out of the number of HR software available.
7. Read case studies and customer testimonials- Before making any final decision, a company should read case studies of the selected merchant along with customer reviews and testimonials. This helps organizations to make effective purchase decisions.
Who is responsible for making a buying decision?
Align someone who will be the best fit to make the final buying decision of an organization. Below are some roles and responsibilities:
Sponsors- These are the main people holding a significant position in the organization. They can be the person holding C-suites such as CEO, CFO, CTO, etc.
Selection Manager- The selection manager is the person who will make the final selection. The person is often the senior HR or a member of the board committee.
Selection advisory committee- The person could be an outside consultant or a member of the advisory board in the organization who provides expert advisory services.
Subject matter experts- These are the people who will be more aligned with the software and manager HR administration, payroll, benefits, recruitment, and employee compensation.
Demo team- This team is responsible for scheduling and taking various demos and making the final buyout decision. They can include senior HR managers, Finance Managers, IT professionals, etc.
