What Is the Best HR Management Software (HRMS) for Your Small or Medium Business?

Shivasankari Bhuvaneswaran

April 26th, 2018 HR Process  

Replacing the loyal yet lousy excel sheets and paper files with something foreign like Human Resources Management Software (HRMS) can seem like a huge gamble for Small/Medium Business. Finding the right fit can induce deep-rooted anxiety. The thought of making a huge purchase for ‘a complete package’ only to find glaring loopholes that make the software worthless is nothing short of distressing.

Finding the right Human Resource Management System for your small business isn’t that different from online shopping. Shopping online is convenient, yet buying something unseen turns you into an over-concerned worrywart. You drive yourself crazy with the thought of being misled by inaccurate representation. Similarly, HR managers are concerned about buying an inadequate HR Management Software for your small business. Unlike online shopping returning HR management hrm software for small businesssoftware is not an option.

Customizing it to fit your needs might be too time-consuming. Finding the perfect solution can be painful and the array of available options will only add fuel to the fire of desperation. To avoid getting hoodwinked by masquerading HR software for small business providers, you need to ignore the self-promotional seaweed, skip the technical jargon, and focus on solid functionalities.

Rather than trying to strike gold with a complete package (an enterprise-level Human Resources Software) with your meager funds, opt for niche apps that solve your pain points one at a time. The following sections will aid your search with a broader description of must-have functionalities under the broad term of HR management software that you can choose for your small business.

Best HR Management Software for Small Business

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1. Application Tracking Software

An Application Tracking Software (ATS) assists HR staff in optimizing their recruitment process and closing job openings faster. These applications sift through resumes, find suitable candidates, schedule interviews, and store resumes securely over the cloud for easy accessibility and document management. Web-based ATS SaaS Platforms are perfect for all SMBs, regardless of what your size or budget is.

An ATS automates all manual tasks involved in the recruitment process, optimizes it end-to-end, and gives HR managers enough time to spend on critical tasks like interviewing candidates. Applications like BrightMove, Workable, Clear Company, and Zoho Recruit extend enterprise-level functionalities to SMBs in a feature-rich platform to streamline their application tracking process and hire the best candidates.

Must-Have Features:

  • Seamless Integration (Email, Website, Job Board)
  • Multi-Channel Accessibility (Cloud, Mobile, Browser)
  • Document Management (Cloud storage)
  • Collaborative (Share it with Interview panel)
  • Progress reports (Status, Feedback)

2. Employee Onboarding Software

SMBs place all their trust on onboarding checklists. Although checklists are useful, their high propensity for errors and time-consuming nature make them less desirable. On the other hand, a robust onboarding software has a great impact on the readiness and performance of a new hire. Undergoing a solid onboarding experience reduces the time-to-productivity of employees, improves their morale, heightens engagement, and reduces turnover rate.

As the onboarding process differs from one company to another, a platform that is easily customizable by the HR staff will be more appropriate for your SMBs than a packaged off-the-shelf human resources software. An efficient onboarding application like BambooHR, KiSSFLOW, Zenefits, or Cake HR take the stress off the onboarding process and make onboarding hassle-free and memorable for both new hires and HR staff.

Must-Have Features:

  • Self-Service option for candidates
  • Customizable Workflow
  • Multi-user access
  • Electronic forms and e-signatures
  • Compliance management

3. Performance Management Software

Performance management systems play a vital role in aligning employee interest with the organization’s mission. Opting for a broader, continuous approach will list the process of goal setting, implementing, reviewing, evaluating, and revising under the umbrella called performance management. A structured, constructive approach can make employees happy, induce a sense of loyalty and give SMBs a competitive edge in the market.

A proper performance feedback app facilitates growth for individuals and the organization. Software options like Workboard, Cezanne, and Small Improvements help SMBs define expectations and shared responsibilities clearly, provide continuous coaching and feedback, and assess employee performance accurately. They come with pre-built customizable templates that simplify launching and administering performance cycles.

Must-Have Features:

  • Customizable Review Templates
  • Comprehensive Assessment Criteria
  • Define Review Cycle (Time, Goals-Individual/Team/department)
  • 360-degree Feedback Option (Self, Supervisor, Peers)
  • Review Results (Collect, Organize, Display and Analyze)

4. Training and Development Software

Training and development software offers HR admins and supervisors a feature-rich interface to create and manage training programs quickly. Using training and development software, SMBs can easily identify the training needs, implement a program, retrieve feedback, and analyze the effectiveness of the training process. In addition to reducing the workload of trainers, they also offer the management a 360-degree view of the training process.

Platforms like Mentis, KiSSFLOW, and Bizimply extend SMBs end-to-end automation with an easily accessible database, seamlessly integrated with other modules like forms, folders, calendars, etc. while offering the option to pre-define the workflow that needs to be followed. These applications allow SMBs to deploy centralized training programs to their staff and measure the outcome effortlessly.

Must-Have Features:

  • Manage it all (Trainers, Programs, Trainees)
  • Schedule Sync (With Google/Outlook Calendar)
  • Real-time Feedback (Trainer, Trainees)
  • Review Results (Assessment, Productivity)
  • Revise Strategy

5. Payroll Software

Payroll software minimizes human intervention and associated errors by automating the process and empowering your HR staff. What previously took 3-14-day for the HR department to compute will barely remain to be a few hours of work. Automated systems improve accuracy of critical details, store confidential payroll information securely, perform complex calculations using pre-defined and customizable rules.

Payroll Management Software extends improved control over the payroll process, letting you configure changes without needing IT support. SMBs can keep up with statutory requirements and adapt to rising business needs quickly using these flexible applications. Solutions like Zenegy Owner, Patriot Software, Orange Payroll and PeopleBookHR make accessing, retrieving, modifying and analyzing payroll data completely hassle-free.

Must-Have Features:

  • Robust and Secure
  • Functionally Rich Interface
  • Omni-Channel Compatibility (Mobile, Web, Cloud)
  • Integrated Accounting (Tax, Salary, PF)
  • Customizable Rule-Engine

6. Employee Management Software

Employee Management software helps SMBs overcome inevitable challenges in employee management. These human resources software options allow HR managers to handle everyday tasks like forecasting workload, scheduling shifts, allotting schedules to employees, and managing workload to keep employees engaged and productive. Maintaining an archive of all labor-related data in a centralized database lets SMBs make a comprehensive analysis and make informed decisions.

Having a seamless employee management process can keep business activities moving forward without hiring a dedicated resource to handle them. Employee management softwares like Deputy, Ultipro, Orange HRM, and Natural HR provide SMBs a powerful employee management system with customizable workflows, centralized database, rule-based engine, and in-built reporting module.

Must-Have Features:

  • Employee Directory
  • Monitor, Track and Record Tasks
  • Access on the go
  • Resource Planning
  • Reporting Module

7. Timesheet Management Software

Timesheet Management Software records, tracks, and monitors employee performance. A good timesheet software synchronizes the number of employees in an organization with their working hours to measure productivity and determine the labor hours involved in completing a specific task. It can be used to establish a process for timesheet tracking and approval, record working hours, retrieve leave details, and calculate their salaries accurately.

Platforms like PeopleBookHR, Zenegy Owner, and KiSSFLOW allow SMBs the option to integrate with third-party applications to capture and analyze the performance of an employee, a project or even a task and export the report in any format. SMBs can use these applications to determine their scheduling and hiring needs, streamline their payroll, and make insightful decisions to optimize workload and workforce.

Must-Have Features:

  • Time Clock
  • Seamless Approvals
  • Interactive Dashboard
  • Real-time Reports
  • Easy Integration with Payroll and Human Resources Software

8. Leave Request Software

Leave management is connected to the organization’s bottom line. However, prioritizing leave requests and ensuring proper availability of the workforce cannot be done with partial visibility. Leave Management software automates the process and provides transparency. These software tools offer employees a self-service option to apply, track, and manage their days off. Managers and HR staff have the option to view, approve/reject, and keep track of these requests.

Leave Management Applications like Cake HR, Zenefits, and KiSSFLOW help SMBs customize their leave types, holiday list, workflow (route requests directly to managers) for approval/rejection. SMBs can analyze leave patterns and retrieve insights on employee performance and diligence. These applications help SMBs track all type of leave requests (sick, vacation, paid), ensure adherence to leave policy without dissatisfying employees.

Must-Have Features:

  • Configurable Fields (Leave Type, Policy, Holiday List)
  • Leave Balance Auto-Update
  • Customizable Leave Request Approval Workflow
  • Carryovers and Overtime
  • Transparency

Things to Remember

Treading down the offbeat path and creating your little galaxy of customizable human resources apps can help overcome the ‘no returns’ disadvantage by tailoring applications to fit your requirements. To mix and match the perfect apps without compromising on your requirements, you’ll need a crystal clear understanding of what your needs are.

Hesitant to take the plunge into the world of the best HR Management Software for small business? Own an HR management software but looking for a way to address the shortcomings without making a cost-intensive purchase? Start with an easily customizable HR Process Automation solution like KiSSFLOW and tailor-make your perfect fit from scratch.

Automate your static processes, make way for seamless integrations, and get real-time interaction in your siloed environment and patch up the glaring loopholes swiftly with KiSSFLOW. Sign up for a free trial!

Best HR Management Software for Small Business

Try it for free for 14-day