Why HR technology is crucial for growth of SMEs in India

Published: June 17, 2019 4:10 PM

SMEs can think of using HR software to monitor and track new job applications, create payrolls for existing as well as for new employees, create vacancies within the company, and more

By Karan Jain

SME’s (Small and Medium Enterprises) share in GDP is 8% in India. Its contribution to employment is 22%, according to a Forbes report published in July 2018. What the segment is lacking is the adoption of technology on a large scale. Most of the time, SMEs presumes technology adoption in their business execution is a costly affair; however, it’s not always. Furthermore, technology like HR software makes the functioning of such enterprises better and hassle-free. In understanding the subject well, let’s dig deeper to knowhow the HR software can benefit SMEs today:

Hassle-free recruitment

Like every enterprise, the functioning of HR in an SME firm is crucial. Identifying the right talent for the right role is challenging. The success of good recruitment can make an employee an asset to the company and similarly, if not chosen carefully, such employees can turn as its greatest liability. Here, using HR software that automates the recruitment process makes sense. Such software is useful in bulk recruitment and it can create recruitment campaigns that reach many competent aspirants and saves time for other productive activations. Likewise, SMEs can think of using HR software to monitor and track new job applications, create payrolls for existing as well as for new employees, create vacancies within the company, perform background checks of potential candidates, and perhaps most importantly allow job applicants to apply online.

Monitoring employee productivity

HR software is also useful in checking employee productivity. When the right recruiting is done, the next challenge that comes in the way of HR is to oversee how productive an employee is over a period of time. Through HR software, your business can check the workflow of employees easily. It will ensure, every employee of is productive and contributing to the needs of the organisation. HR software also gives the facility of reviewing and appraising employees. Furthermore, it provides a platform where SMEs can share ideas and where employers can deal with employee concerns too.

Tracking employee referral becomes easy

Recruiting through referral is appreciated. In general, people who come through referrals have more chances of doing well in the organisation. HR software easily manages referrals and track which employee has referred to a candidate. This information becomes very pertinent for a higher authority to decide whether it wants to recruit a referred candidate or not. The same software can be used for thanking employees who have referred to a candidate.

Managing employees KRAs

Like the above benefits, HR software also comes handy in managing employee KRAs. For an SME to succeed, it should focus on the employees’ accomplished projects/work. Through HR software, it is easy to track the productivity of a team or individuals. Furthermore, AI enabled HR software can even make employee specific suggestions using data shared by employees. Such suggestions can create better schedules making teams more productive. HR software also can be used to initiate workshops or training schedules for skill enhancement of employees. The results of such training also can be analyzed and employees in need of further training can be identified.

Real-time access to manage employee’s attendance and data

Managing employee leaves, absences through the HR software is also a smart idea that can be implemented. As often, an HR professional in an SME needs to manage several of such leaves and absence data on a regular basis. The simpler way of using this software to manage employee’s attendance is to create an access on the site and ensure it is being updated by the individual employees themselves. Simultaneously, this process can be utilised for other relevant factors including, being in the field, outdoor events, managing time when employees are out for meetings etc. This software also allows the managers to control team productivity and ensure that timely approvals are given online by reducing, paper trail or time consuming approval process. By allowing access to such software, employees can share relevant information which makes them more aligned and loyal to the team and organisation.


Every company is different with a different set of requirements. Yet HR remains the core pillar that ensures the ethos and drives the culture of all functioning. Therefore, implementing HR tech software is one of the most efficient way that must be adopted to sustain maximum ROI, recognition, and retention for the SMEs in India.

(The author is co-founder of HR-One)

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