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Choose the best HR & Payroll software for your business in India – A buyer’s guide

7 min read

Picking the Payroll Software in India is very difficult. This article will help you in your decision-making process.

The estimated count of SMEs in India is 42.50 million and with India’s ‘Make in India’ push, this number will increase exponentially in near future. The Covid-19 pandemic has brought a huge change within work culture and this change is beyond masks and hygiene factors. Organizations have become more supple towards technology. New trend of remote working took no time in blending with the organizational culture of any industry. Yet, SMEs in India still have scope in introducing automation in their businesses.

Base of every business stands on its HR. Bringing automation in HR activities by implementing cloud-based HR and Payroll software has become a necessity for businesses today. As the need has been established, the market is overwhelmed with various HR and Payroll software vendors and even freelancers who develop customized systems as per specifications.

Why is there a need for HR management and payroll software?

Choosing the right software for your business is definitely a strenuous exercise. Being the captain of your business named ship, you must be well informed about each area of your business and that too without going micro-level.

The time has changed now and the value of employees is very well understood that the reach of HR management has expanded beyond salary disbursal, leave management, and legal compliance.

Since HR responsibilities within the organizations have extended, HRMS and Payroll systems have become the backbone of businesses. Hence, have come up with enormous modules and have enhanced with change in market circumstances. With such a huge amount of options, picking the right HR management software is very important.

How to choose the right HR management and payroll software?

Almost all companies invest in the latest technology for their business. But successful companies invest in technology that is right for ‘their’ business and which suits their high growth plans.

5 most important factors to consider before buying HR and payroll software for your company


Many companies miss this very important aspect before buying HR management software which is getting the desired ROI (return on investment) in the form of outcomes. Role of professional HR management software is not just to streamline the HR activities but to give you actual measurable results in business. From reducing day-to-day HR chores, improving employee productivity, saving time and giving progress reports of ongoing projects, a professional HR software automates each HR activity.

Right from the employee onboarding to employee exit, HR management software documents each activity of an employee on a real-time basis. On the basis of data generated by the HR software, organizations should be able to measure the expected and actually achieved the performance of each employee.

Before purchasing HR management software, you must ask your shortlisted HR software vendors about the ROI and on top of it, you should know whether that HR software is worth that investment or not. To analyse the ROI, you must keep few factors in mind;

  • Implementation costs and other charges
  • Productivity tools
  • Measurable benefits
  • Comparison with their competitors
  • Depletion in employee turnover


Organize an internal survey within the organization and identify the gaps. Make a list of features and modules which are a must for your HR and Payroll process. This exercise is very important as unfortunately finding a HR software that will be an exact framework as per your visualization. Measuring the scalability of HR software is very important;

      • How flexible the software is in terms of customizations?
      • Is there any limit to the number of users/employees?
      • Will the HR software continue to enhance and update the features?
      • What is the roadmap? How will the HR software make expectations possible for you?

Advanced data security

Data security and data privacy holds importance while purchasing HR software due to increasing online threats. Day by day the risk to data security is increasing.

      • HR software must ensure encrypted user credentials (Username and Password) using a 256-bit AES encryption algorithm.
      • HR software must ensure that the application is only accessible using secure https protocol.
      • HR software must have features of restricting IP’s. It means restricting remote login access to the servers only to specific IP’s.

Customer service

Choose HR software that will assign actual relationship managers rather than only chatbots and support tickets. No matter how automated the customer support process is, a human touch is a must between client and vendor. Practically, while working if your employee faces any issue, it gives him satisfaction if a person speaks to him and assures him with help.

HR software that has bad customer service is not worth purchasing. A better approach plan is to have a conversation with the clients of the HR software vendor.

Integration and flexibility

The HR software should be flexible in nature and must be open enough to handle the data import and export from other old systems or software. For example, if you want to integrate with the biometric machine with HR software, it must give you smooth integration and easy to access output.

Other factors

  • Seamless mobile application
  • Cost structure
  • Easy UI
  • Implementation
  • Existing clients and their BCP

Table of Contents

    Meet the author

    Keka Editorial Team

    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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