Must-have HR Software Features for SMBs

SMBs have needs that are different from large organizations, and they need flexibility from any business productivity solutions they use. In this post, we will take a look at some must-have HR software features that SMBs will find helpful in managing their workforce.

Small and medium businesses do not generally have the workforce to justify spend on a full-fledged on premise HR software solution. However, that does not mean that they cannot enjoy the benefits of HR technology – what they can do is to adopt cloud software that is more affordable and convenient. For this software to be truly helpful for them, SMBs need the software to come with certain features. Some of these features have been covered in this post here, and we will talk more about these and other features in this article. This article is intended to help SMBs in choosing the right software for their workplaces.

Easy scalability

SMBs might have only a few employees but they will grow, and when this happens, they have to change their systems accordingly. Instead of employing a new system every time a major hiring drive happens, wouldn’t it be easier to just upgrade the same system? This is what organizations can gain with the easy scalability option of online HR software. The software comes in packages which are limited by the number of employees you can manage using it, and scaling up is simply a matter of clicking a few buttons. When selecting a solution for the workplace, ensure that it does not give you any pains or obstacles in scaling up.

Modular solution

In SMBs, in general, there is not much of formal training, at least in the initial stages. Employees are expected to know what they need to do, and perform their tasks without much guidance. Also, the entire payroll function might have been outsourced, and as a result, they might not need their HR solution to have payroll management or training and development management capabilities. In such cases, why should they waste money on software that offers them solutions for problems they don’t have? Indeed, this is such a barrier that organizations would rather not employ a solution than go for an expensive one loaded with redundant features. However, that they do not have a need for it now does not mean that they would not have a need for it going forward. As more and more employees join the organization, there would be the need to train them, and monitor their development. Also, if the economies of scale warrant it, payroll might even be brought in-house.

So, what is the solution here? Deploy a solution only to change it when you need more or not deploy one at all? There is a much easier way. Deploy a modular solution that offers you the flexibility to add or remove modules as and when you need or don’t need them. This might not be so seamless with an installed solution, but this is how online software is built. Initially, you can only deploy the core modules like self-service and time and attendance management, and you can go for more when the need arises. This flexibility is really helpful in a number of ways.

Employee self-service

That brings us to the next must-have feature for organizations – employee self-service. Gone are the days when you needed to employ HR resources just for trivial tasks. No more fielding trivial requests from employees – you give them the chance to carry out many of their HR tasks themselves, and reap the benefits of improved service delivery, more productivity, and lower administrative costs. Take a simple example of changing address in personnel records. Without self-service, an HR professional would have to be involved, and the process would probably take a few days, with all the paperwork and red tape. Instead, self-service allows employees to change their details easily by logging into their accounts. This would be reflected in the records in real-time, and would take minutes as opposed to the days earlier. Almost all of the HRM tasks are suitable for self-service – from personnel records to time and attendance management to performance management. Also, since employees have more control and are more active participants in HRM, it also helps with engagement.


Dashboards are very helpful for users in managing their tasks, especially ones which are administrative in nature such as HRM tasks. Normally, employees would not think much about regularizing their attendances or completing their appraisals on time, and you do not want to employ resources just to remind people to do that. Instead, if you offer them dashboards which prominently feature things to do, they will be able to easily complete their tasks in time. Dashboards offer users information and convenience, and provide them with links that allow them to directly go to the place from where they can complete their tasks. They act as to-do lists and checklists, allowing employees to complete tasks in time, in a convenient manner.


To improve, one must analyse and understand the status quo, and analytics provide organizations with this scope. With analytics, users can see if there are any process deficiencies or gaps, and take action to eliminate these, and enjoy an optimized process. Also, with HR software, analytics are made available to all the users, which means that there is no need to waste time in sending out analysis requests to business intelligence or other functional teams. If a team leader wants to know how many of the team members are not punctual, he or she would simply have to click a few tabs to get this information. No more is it necessary to send requisitions and wait till the information comes back. Analytics also form the basis for decision-making, and in HRM, where transparency is very important, this data-driven approach will be very helpful.

Seamless integrations

In businesses, rarely do processes and functions work alone. For business processes to be run collaboratively, the solutions organizations use to manage these processes should also collaborate with one another. There is no point in using automated solutions if you have to manually transfer data among systems. So, how do you ensure that this collaboration happens seamlessly? This is where integration comes in. When two solutions are integrated, they transfer data among themselves easily and seamlessly. You can have a truly integrated process this way, and no manual intervention is required for the solutions to work with one another. When you have legacy systems built on different architecture, you might have a problem with integrations – either they cannot be easily integrated, or the integration will be scratchy and throw up issues – but with online solutions, since they use open architecture, integrations become simpler. Whether it is your expense software solution or CRM software, online human resource software integrates with it to offer a great user experience. A lot of time and effort are saved with these integrations.

Data management

One of the pains in HRM is data management. A lot of paperwork is generated from the time employees join the organization till the time they leave. To reduce the pains of paperwork, many organizations have switched to digitization. However, digital paperwork can be just as confusing and chaotic if you do not have the right tools and practices to manage it. Also, when you save information in folders in standalone systems, there will be issues with collaboration. Also, storage and retrieval can be a pain and consume a lot of time. To avoid all of this, you need a good data management solution. The good news is that you need not invest separately in a data management solution. HR solutions like SutiHR come with data management capabilities, which allow you to automate data management. Of course, you can also deploy a standalone application and integrate it with the HR solution but when you have the option for a pre-integrated solution that comes as part of a package, why bother with multiple solutions? From personnel records to performance and other HR-related data, you can store and manage everything from the same solution.

These are some of the features that you must-have in the HR solution you choose. Further, you need to keep ease of use in mind as well. Employees don’t take to change easily, and if that change is complicated, it takes more time. So, ensure that the solution you deploy is intuitive, and will not cause any adoption issues. Cost is one of the things SMBs need to worry about the least – online HR software comes in multiple packages and has lots of options to choose the right solution for the workplace. Also, maintenance and hosting are no more issues that SMBs have to worry about, which means that there are little to no hassles in deploying the solution and getting it up and running. With the software, you can get more done with less, and have a professional human resource management function without much effort. It helps you manage everything end-to-end in a more effective manner.

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