How to Buy the Best HRMS Software: A Guide by SaaS Procurement Experts

With companies becoming more people-first, there is a shift in focus to how the HR department functions. From being accountable for hiring the right talent to keeping track of employee data, drafting policies, enabling onboarding and offboarding policies and other work functions, companies are now focusing on helping the HR department become more efficient and effective at looking into the smallest of details. 

This is where the importance of having a Human Resource Management System (HRMS) comes into play. But finding a solution that helps address all the functions and roles of the HR department is easier said than done. 

In this guide, we’re going to share a quick recap of what HRMS is, why it is important and how you can buy the best software. And we’ve included some tips from our SaaS procurement experts! 

Recap: What is HRMS software and why is it important? 

Human resource management system (HRMS) software refers to a solution that is designed to help HR teams manage and optimise an organisation’s human resources. This typically includes various processes like employee records management, payroll management, time and attendance tracking, recruitment and onboarding, performance management, benefits administration, training and development, and compliance management. 

Here’s why HRMS software is crucial for the modern organisation: 

• Efficiency and Automation: HRMS can help HR teams automate routine tasks like payroll calculations, attendance tracking, leave management, updating employee documentation and more. This helps reduce the time and effort for teams, while reducing the risk of human error in critical processes. 
• Data Management and Accessibility: An HRMS consolidates all employee data onto a single dashboard making it simpler to access and manage information. 
• Improved Decision-Making: Most HR management solutions come with powerful analytics and reporting tools that provide insights into workforce trends, performance metrics and other key HR data. This helps make data-driven business decisions to boost employee engagement, retention and productivity. 
• Compliance and Risk Management: An organisation is meant to adhere to several local, state and federal labour laws and regulations. HRMS software helps with automated compliance tracking to mitigate risk of legal issues and penalties. 
• Enhanced Employee Experience: HRMS software often come with employee self-service portals that allow employees to manage their own information, request leave or access important documents related to their roles. This helps support performance management and development programs with personalisation at scale. 

How to buy the best HRMS software? 

The approach with which you purchase an HRMS software for your organisation should be similar to other SaaS solutions you implement in your company’s tech stack. Here’s the approach our SaaS procurement experts recommend following: 

1. Identify your organisation’s needs 

Before you even start to search for or evaluate the HRMS software available, it’s important to first understand your organisation’s needs. Here are some of the questions that you should have detailed answers to: 

• What does your current HR process look like?
• What are the roadblocks faced by your HR team? 
• How do these roadblocks impact the department’s efficiency? 
• What are the objectives you want to address? 
• What are the features crucial for your organisation? (eg. payroll, attendance tracking, performance management) 

• How many employees will use the system?
• What is your budget for HRMS software?

2. Understand the key HRMS features 

There are several solutions that address a very narrowed down use case for the HR team. But we recommend choosing an HRMS software that will be able to support your current and future needs. Here are some of the features our SaaS procurement experts look for: 

• Employee Records Management: The HRMS software should be able to store all employee information methodically and also their related documents. This includes their personal details, job history, performance records, contracts, IDs, certificates and more. 
• Payroll Management: The software should be able to calculate salaries, taxes and benefits automatically, while ensuring complete compliance to regulations the organisation falls under. HRMS also comes with additional functionalities like being able to make direct deposits. 
• Time and Attendance Tracking: HRMS software should be able to track employee working hours, manage leave requests, approvals and accruals. It should also be able to record overtime to calculate compensation and benefits accordingly. 
• Recruitment and Onboarding:  The HR team should be able to manage job postings, applications and the recruitment process. It should also be able to automate a few steps like scheduling an interview, facilitating document collection or starting the onboarding workflow. 
• Performance Management: HR teams are often responsible for performance reviews and providing consolidated feedback to employees. The tool should allow setting, tracking and evaluating employee goals and objectives. 
• Training and Development: HRMS software should provide for continual training programs to help employees upskill and reskill. This should include scheduling and tracking training sessions, alongwith progress tracking while providing them with the resources required. 
• Compliance Management:  A good solution should be able to offer regulatory compliance with labour laws, provide audit trails and policy management. 
• Analytics and Reporting: HRMS software should be able to generate customisable reports with insights on headcount, turnover rates, employee engagement rate, employee performance and other metrics. 

• Employee Self-Service: A good solution should also additionally enable employees to update their personal information, view pay slips and access HR documents around policies or their own job roles. 
• Integration Capabilities: The HR department needs to work in tandem with other departments. This is why it is crucial for an HRMS software to integrate with other enterprise systems like ERP, accounting software and other time-tracking tools. 

3. Research and shortlist HRMS vendors 

Once you have a clear understanding of your organisation’s needs and the capabilities of an HRMS vendor, it’s time to research and shortlist the software that checks off the feature list above. But in addition to the same, our SaaS procurement experts also recommend looking into: 

• Vendor reputation: Look into the sentiment around the brand of the HRMS vendor. It’s crucial to seek a vendor that has a positive reputation for delivering the value they offer. 
• Market capture: Seek details on the industry and size of organisations that are using the HRMS software to understand where they are popular, and their capability to scale. 
• Customer reviews and testimonials: Dig into directories and listings to see what their existing and past customers are saying about the HRMS software. 
• Success stories: Read case studies shared by the vendor to get details about the challenges they have helped organisations solve, and the impact they have made. 
• Demos and free trials: Seek more first-hand experiences of the HRMS software but remember to collaborate with the team that would be using the solution. 
• Resources: Evaluate the resources that the vendor provides for onboarding, training and implementation. This includes knowledge base, help documents, blogs, guides, checklists and other resources. 
• Customer support and success: Look into the channels the vendor provides assistance over; verify if they deliver the support promised through testimonials. 

4. Consider cloud vs on-premise solutions 

An on-premise HRMS software gives your organisation more control over data and the security measures you implement. While it is suited for enterprise organisations with well-formed IT teams that require setting up strict data security measures, they are a significant upfront investment for others in addition to the ongoing costs that have to be incurred. 

On the other hand, cloud HRMS software is hosted on the vendor’s server. This offers a much faster time-to-implement, delivering efficiency, easy scalability and remote accessibility. This type of HRMS software can reduce implementation costs, but comes with limitations in terms of customisations. 

5. Evaluate ease of use and adoption 

Ensure the HRMS software you shortlist offers an easy-to-use interface to the team that will be using it. Request details on the plan of implementation and how the vendor would offer support throughout the process. This should include information around timelines, data migration, setting up custom HR workflows and automations, and training for the team.  

Our SaaS procurement experts do recommend testing the set up and running all functions on the HRMS software and monitoring the impact it has. 

6. Calculate the total cost of ownership 

The total cost of ownership (TCO) for HRMS (Human Resource Management System) software is another crucial parameter to account for. 

Based on whether you opt for on-premise or cloud HRMS software, this should include the set up and implementation fees, hardware and software subscription costs, and maintenance expenses. 

7. Consider post-purchase updates 

Organisations are evolving rapidly and so are employee expectations. That’s why it’s important for HR teams to continually adapt to trends and technologies. 

This is why our SaaS procurement experts also recommend checking for the frequency at which the HRMS vendor rolls out updates and upgrades. From adding new features to enhancing existing ones, the HRMS software should have a track record of keeping up with the times. 

Top 5 HRMS Software for Businesses in India

Now that we’ve discussed what to look for when buying HRMS software. Here’s a list of the top HRMS software for businesses based on features: 

1. GreytHR

GreytHR is a comprehensive HR software solution designed to streamline and automate various HR processes. It focuses on enhancing employee productivity and simplifying HR management tasks. With its user-friendly interface and robust features, GreytHR aims to empower both HR professionals and employees. The software provides tools for payroll processing, leave management, and compliance, making it a versatile choice for businesses looking to modernize their HR operations. 

Key features

• Automated payroll processing
• Simplified leave and attendance management
• Employee data management with a self-service portal
• Reports and analytics that provide valuable insights
• Compliance with local laws and regulations

Suited for

GreytHR is the ideal choice for medium and large-sized organizations.

Pricing

GreytHR’s minimum paid package starts at Rs. 3,495 monthly for up to 50 employees. Additional employees can be added for Rs. 30 per month.

2. Zing HR

Zing HR is a cloud-based HRMS platform offering end-to-end HR solutions for businesses of all sizes. It stands out with its unique features designed to streamline HR processes and boost organizational productivity. Zing HR combines traditional HR management tools with modern technologies, providing a comprehensive suite that covers everything from payroll to performance management. Its cloud-based nature ensures accessibility and scalability, making it suitable for growing businesses.

Key features

• Automated payroll processing ensuring compliance with tax regulations
• Simplified time and attendance tracking
• Easy-to-use employee self-service tools
• Detailed analytics and reports for better data-driven decisions
• Manage HR on the go with a mobile app

Suited for

Zing HR is the ideal choice for small, medium, and large-sized organizations.

Pricing

Zing HR’s affordable pricing starts at Rs. 7,250 per month for 50 employees.

3. Zoho People

Zoho People is a user-friendly, comprehensive HR software solution that simplifies complex HR processes. It offers a wide range of features covering the entire employee lifecycle, from recruitment to exit. As part of the Zoho ecosystem, it integrates seamlessly with other Zoho applications, providing a unified platform for business operations. Zoho People is designed to be intuitive and adaptable, catering to the diverse needs of modern businesses across various industries.

Key features

• Simplified recruitment and applicant tracking
• Automated onboarding and offboarding processes
• Efficient payroll processing with tax calculations
• Flexible time and attendance tracking
• Simple to set goals and performance management

Suited for

Zoho People is the ideal choice for medium and large-sized organizations.

Pricing

Zoho People’s minimum package starts at Rs. 48 per month for every user, and it is billed annually.

4. PeopleStrong 

PeopleStrong is a versatile HR solution provider that offers a wide array of services to manage day-to-day HR operations. It caters to organizations of all sizes and scales, providing tools for core HR functions, talent management, and workforce analytics. PeopleStrong’s platform is designed to be adaptable and scalable, growing with your business needs. It aims to transform HR processes through automation and data-driven insights, enabling organizations to focus on strategic HR initiatives.

Key features

• Automated accurate payroll processing
• Easy to manage employee self-service portal
• Hassle-free leave administration
• Robust performance management tools
• Efficient recruitment management system

Suited for

PeopleStrong is the ideal choice for large and medium-sized organizations.

Pricing

PeopleStrong follows a customized pricing model based on business size, scale, and requirements.

5. Kredily

Kredily is a cloud-based HR software that focuses on simplifying essential HR processes for businesses of all sizes. It specializes in core HR functions such as attendance management, leave management, and payroll processing. Kredily’s platform is designed with user-friendliness in mind, making it accessible for both HR professionals and employees. Its cloud-based nature ensures data security and 24/7 accessibility, while its mobile app facilitates on-the-go HR management. 

Key features

• Streamlined attendance management system
• Automated payroll processing
• Simplified leave management system
• Mobile app for 24/7 access
• Secured cloud storage of employee data

Suited for

Kredily is the ideal choice for small, medium, and large-sized organizations.

Pricing

Kredily’s paid packages start at Rs. 1,400 per month for 25 employees, and additional employees can be added for Rs. 60 per month.

Buy the best HRMS software for your business with Wyzard 

Right from the talent you hire to how engaged the employees remain during their journey with you and their performance, the HRMS software you choose will impact everything at your workplace – especially how well the employees embrace your policies and culture. 

That’s why it is important to note that continually switching the HRMS software you use is not a viable option. Migrating employee data, organisation information or setting up custom workflows and automations can disrupt regular functions. 

While we recommend following the above HRMS software buying guide to find the right solution, seeking help with SaaS procurement experts is better. This is where Wyzard comes in to help you identify the right vendors based on your requirements, negotiate the best prices and thereafter, manage the software subscriptions. 

Need help choosing the right HRMS software for your organisation? Book a demo of Wyzard today.