| 8 September, 2023 | 10 Min Read

A Must-Have Checklist for Choosing the Right Online HR Software

While more and more businesses are revolutionizing how their HR works, picking an online HR management software could be challenging with less assistance. Is online HR software a worthy investment? Why and how do I compare and find the best online HR software? Hang in there to find answers to all such questions.

It's time for you to acknowledge that your HR department's systems and processes need to be updated. HR needs to upskill and reskill by implementing strategic workforce planning, adopting a more data-driven approach, and introducing new employee-centric programs. The HR team must be liberated from the chains of repetitive administrative activities to assist these efforts.

With automation becoming the new norm, human resource management systems can help you save time, streamline & centralize HR processes, and incorporate better talent management that results in less burdened HR departments and happier employees. Let’s take a deep dive into the list of to-dos to find the best-fit online HR Management software in 2023 and beyond. 

Is investing in Human Resource Management Software worth it?

People have common misconceptions that make them hold this decision back. They believe that all online HR management systems are super expensive. While investing in a human resource information system could involve directing significant financial resources, it doesn’t have to cost you heavily.

Approximately 44% of talent managers are looking for cloud HR solutions to improve efficiency and productivity, while 35% see them as a means to reduce costs.

So, If a research-based decision is made by comparing all HR platforms in the market with suitable parameters and factors, you can easily find the right HR software for your business. Considering the cost of the resources that HR software saves you, it is worth every penny you spend on it.

Factors to consider before picking HR Software for your business

With developments in the business industry, Modern HR systems offer many benefits over their older counterparts. However, it is wise to check if these benefits align with your business needs. Here are a few factors that shouldn't slip your mind while picking software for your business.

Grove HR - How to Find the Right HRIS System for Your Business?

Dashboard of HRIS System where you can get a quick overview of HR functions 


1. Size of your business

The working of different HR software varies widely depending on the average employee count. Each software is designed to deal with and cater to the needs of specific business sizes. A small business would have very different priorities than an established business; hence, it is essential to pick the software that fits the size of your business. For example, if your company has up to 50 employees, you can use Grove HR free of charge while still using quite a lot of powerful features such as employee management, recruitment, onboarding, offboarding, etc. 

2. The needs of your company

It is vital to jot down your business's pain points and needs that your existing old-fashioned HR system cannot fulfill. Treat these needs as priorities while looking through the features to find the software that'll resolve all your worries. 

It's important to note that there is no one-size-fits-all solution when it comes to HR software. When evaluating different software options, consider the utility of the tools offered, the user interface, ease of use, and value for money. By keeping these factors in mind, you can find modernized free HR softwares that meets your company's needs and enhances your HR processes.

3. Your budget

Finding the right software might not be that difficult a task, but it should also stay within the limits of your pocket. Draw a precise estimate of the funds that can be spared for this investment and keep it in mind while going through the various HR solutions available in the market.

Remember to check if there are additional add-ons such as implementation fees, customization fees, migration fees, customer support fees, and training fees. Don't forget to ask for discounts or promotions. 

In this article, we covered the list of the best 10 free HR software worth your attention. A good thing is that they won't hurt your pocket.  

4. The vision and long-term goals of your brand

Some software features would showcase its benefits and produce results in the long run. The HR Analytics feature would help you make better future decisions for your business. Features like these will help you readjust and realign your approach and strategies toward your long-term goals. So make sure that the product you choose aligns with the vision of your business.

5. No one shoe fits all

Just because some HR software is working for your competitor or other local businesses, it doesn't mean that it would work for you too. The desirable and preferred traits while choosing HR software differ widely from business-to-business. So there's no one perfect software that fits all businesses. Hence, you should conduct your own research and then make a decision.

If you feel the need to dig deeper into understanding the process of selecting the best software for you, you can refer to our blog on how to find the top HR software for your business.

Comparison criteria

There are so many features that could be a parameter for comparison between options. So, in the following section, we'll discuss the crucial points to consider while evaluating alternative software:

1. Utility - Examine the tools offered to you and assess their value to your company. Check to see if the functions included with each tool are beneficial to you.

2. User Interface or UI - Find an HR software that offers a user-friendly and easy-to-use interface that all departments can efficiently operate, with minimum trainings. 

3. Ease of Use - The software shouldn't be too technically complex for the employees to understand, use and navigate.

4. Value for money - Before choosing HR software, ensure it delivers on its promises. Look for free trials to see if it's worth the money.

What to expect from modernized HR Software

There are specific must-have tech stacks in the HR Automation system that you shouldn’t compromise on, no matter what. We’ve simplified, grouped, and listed them down for you to save you the research.

1. Recruitment and seamless employee onboarding

There are new spheres of Recruitment that AI is helping to change for the better. Automated application collection, custom hiring pipeline, career portal, and systemized candidate evaluation help increase your hiring team's productivity and attract passive applicants with specific niche talent.

After recruitment, a seamless onboarding experience would create a great impression on new employees and acquaint them with the role within the organization. With features like 1-click onboarding, this entire onboarding process can be automated and upgraded to several levels.

A streamlined onboarding procedure in a company leads to a 62% increase in new hire productivity and a 50% increase in retention.

2. Time and Attendance Management

Time is one of the costliest resources for a business, and its management dictates its future. Say goodbye to manual tracking of vacation days, managing leave request emails, processing schedule-related requests, and worrying about blunders in the payroll.

With features like QR check-in, flexible work schedules, on-demand change in schedule, real-time work hour records, geo-fencing, and so on, a time tracking feature would benefit your organization massively.

HR employees manage so much, and this auto-pilot time and attendance management put the chaos of the HR department in order. With automation coming into play, there is more or less nothing to manage in this regard.

3. Automated Payroll Preparation

Considering how much a small error on the part of the team could cost the company, payroll processing is a crucial task. Auto-computing salary, filing taxes, calculating leaves, and automatic reminders features of a modern cloud-based HR software help make the payroll preparation feel like a breeze.

Updating the stand-alone payroll system to an integrated payroll system with a more systematic approach would help you automate the payroll process. Integrated with the time and attendance system, the payroll preparation would be automated and have no room for error, saving the company from financial/legal compliance issues.

4. Performance Enablement

According to 89% of HR experts, conducting performance management frequently is more successful than yearly or twice-yearly performance assessments.

The word performance management has an element of constraint, but the concept of enablement supports growth. With the help of peer feedback, manager reviews, recognition posts, customizable review forms, performance reviews, and standard parametric assessments, an employee can easily place where they stand and work accordingly.

The feature of performance management helps employees self-assess their performance and reflect on the areas that need growth. Each employee has their own profile and uses the features to their own benefit, which aids the company’s growth. The personalization element helps employees feel more valued, and it betters the overall employee experience.

Grove HR - Performance Review

Launch and manage performance reviews at ease with Grove HR


5. Chatbots

Chatbots help promote a more conversational interface where an employee would know exactly who to go to with the same repeated set of problems. An employee or applicant can quickly raise their concern or ask their questions within a few clicks.

In bigger organizations especially, employees could feel unheard and undervalued just because their grievances are not addressed. With the feature of chatbots and the implementation of 360 feedback tools, an employee does not have to wait for office hours or the availability of an HR employee to raise a ticket or share their perspective.

6. AI integration

HR managers should prioritize selecting HR platforms that integrate with AI technology. This strategic choice enhances efficiency and ensures continuous accuracy and transparency.

AI's ability to meticulously process data like resumes and candidate profiles improves precision and reduces bias, leading to a fairer recruitment process. The transparency offered by AI-driven analytics and reporting empowers HR managers with valuable insights, facilitating data-driven decisions and fostering accountability within the organization.

Benefits of having HR management software

1. Dedicated mobile app for managers & employees

HR can save 40% time on administrative tasks with a dedicated HR platform.

With the help of mobile native applications, the HR team can manage all HR processes from the comfort of their home. Mobile apps make the management of the entire department extremely easy. An employee could be uploading their documents at the lunch table with the Employee Self-Service feature or completing a survey as an Employee Engagement exercise while waiting for their coffee.

With an HR management system, HR managers would be carrying the entire HR office in their pocket. Considering the after-effects of the pandemic, having an office-free HR department seems a brilliant choice.

2. Boosted employee engagement

Using the HR Automation software to conduct question polls and surveys, maintain the company’s social feed, recommend industry-specific blog posts, and collect review forms helps boost employee engagement. Increased employee engagement could drastically improve your employee experience.

This would promote a culture of employee engagement where employees feel like their opinions matter and are heard, drastically improving the employee experience and making them feel valued and connected to the company.

3. Make data-driven decisions

Take the intuition out of the decision-making process for the company. By leveraging the HR Analytics feature of an HRMS, companies can turn raw data from external and internal data sources into processed information to serve as a logical basis for making decisions. This will help your team compare, analyze and manage processed data to drive insightful actions.

The fact that most decisions are based on logic and reason dramatically increases the likelihood of effective implementation of HR software in any company, be it big or small.

4. Store and manage massive data sets safely

With the constant fluctuation in retention rate, there is a lot of data to handle and store. Using cloud-based HR software, bolstered by the efficient data management capabilities of top productivity apps, companies can effectively store large data sets and manage employee data, HR documents, directories, and more, making the data management process more accessible.

Say goodbye to filing cabinets, and save the cost of paper and printing documents while keeping a systematic and categorical record of all of the company’s data accessible with just a click. Employers can also focus more on enhancing internal productivity and processes without fearing losing or misplacing important information. So, it’s a win-win.

If you’re still not convinced, here are the X more reasons to buy HR software. But in a nutshell, purchasing HR software is the greatest gift you can give to your HR department.

Uplift your HR. Upscale your growth

It’s time that we explore what’s more to HR. Revise and revisit old principles and see if they still stand relevant. The focus of the department's activities needs to be more centered around employees’ welfare and be less about a set of monotonous formalities. We need to let technology and automation help out the HR department to divert focus.

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Reduce manual effort with automated HR processes

  • Reduce manual effort with automated HR processes
  • Automate attendance and time off.
  • Conduct 360-degree performance management easily.