Is hiring your priority, but you don’t have processes for tracking people’s data?
Is your startup slowed down because of manual tracking (like emails, spreadsheets, WhatsApp approval) and processes for hiring and onboarding?
As your company expands, are you finding it increasingly difficult to manage payroll, attendance, and compliance for your growing workforce?
For a lot of Indian startups, growing their company is an exciting time. However, with growth comes an increased complexity in managing all aspects of the HR function. What often starts as 5-10 employees quickly turns into increased difficulty in managing payroll, attendance, leave requests, performance reviews, and compliance. Trying to keep up with all of this manually can lead to confusion, errors, and burnout for many HR professionals.
Here’s why a good HRMS solution for Indian startups is so important. An effective HRMS allows you to automate many of the HR processes that companies of all sizes utilise to manage their business; this will not only improve accuracy but will also centralize all relevant HR information in one place, removing the need to have to keep track of all these various systems.
What Is HRMS and Why Do Indian Startups Need It?
A human resources management system (HRMS) is software that provides functionality to manage the entire employee lifecycle on one software solution, from hiring to exit. This means it replaces many of the functions normally performed manually to create automated functions enabled by real-time data.
An HRMS is a strategic tool for Indian startups; it can be a significant factor in enablement for growth when teams are growing and expanding quickly. The founders and human resources (HR) teams need to have a good handle on control, visibility, and compliance as the team grows without increasing the administrative burden.
Reasons why HRMS is needed by Indian startups:
- Expanding startup companies grow rapidly; they require structured HR processes.
- Manual HR processes lead to inaccuracies, delays, and risks associated with compliance.
- HR teams are typically smaller in size; therefore, they require automation to free up time for more valuable and efficient activities.
- As remote work and hybrid work continue to become more relevant, there is a requirement for digital HR systems.
- When investing in Indian startups, investors want companies to demonstrate that their HR processes are mature and that they comply with applicable laws.
By using the appropriate HRMS system for Indian startups, you will ensure you have simplified operations, a better employee experience, and an HR system that is positioned to meet the future.
What HR Challenges are faced by Indian Startups while scaling?
Human Resources (HR) challenges exist when scaling a startup in India. When there are no systems to manage these HR challenges, they become a disaster very quickly.
As organisations grow their workforce, manual processes cannot keep pace with growth, so HR professionals spend most of their time dealing with problems rather than helping their organisation grow.
HR Challenges Faced by Startups:
| HR Challenge | Startup Problem | HRMS Solution |
| Payroll Errors and Delays | Manual payroll causes salary errors and delayed payments. | Payroll software automates calculations and ensures accurate, on-time salaries. |
| Attendance Tracking Issues | Tracking attendance across teams and locations is inaccurate. | Attendance management software records real-time attendance digitally. |
| Leave Management Confusion | Email or WhatsApp leave approvals create confusion. | Leave management software automates leave policies and approvals. |
| Compliance Risks | PF, ESI, and TDS compliance becomes complex and risky. | HRMS automates statutory calculations and compliance reports. |
| Scattered Employee Data | Employee data spread across files leads to poor decisions. | HRMS centralises all employee information securely. |
| Performance Management Gaps | Manual appraisals are irregular and biased. | Performance management software enables structured reviews and feedback. |
| HR Team Burnout | HR teams spend time on repetitive tasks. | HRMS automates HR workflows and reduces manual effort. |
Key HRMS features that remove the complexities of Indian Startups
1. Single Database
An easy-to-access, secure space for storing all the relevant and accurate information regarding employees, so HR can make better business decisions based on data-driven, well-thought-out decisions
2. Automated Payroll System
Accurate calculation of all employee salaries, including tax deductions, reimbursements, and compliance; timely payment of salaries each month.
3. Attendance Management Software
Accurately recording employee attendance and working hours through the use of biometric verification systems, web-based systems, or mobile devices, while maintaining accurate and updated payroll records.
4. Leave Management Software
Automating leave policies, tracking approvals, maintaining clear balances and holiday calendars, thereby reducing HR’s follow-up with employees and employee confusion around company leave policy.
5. Compliance Management
Helping new businesses stay compliant with all Federal and State laws about employee benefits, employee tax withholding, and Labour Laws.
6. Employee Performance Management System
Enabling business leaders to set goals, obtain continuous feedback, appraise employees, and conduct annual performance appraisals that support the growth of their business.
7. Employee Self-Service Portal
Providing employees the ability to access their pay stubs, submit leave requests, update their personal information, and keep track of their own attendance.
8. HR Analytics & Reporting
Providing HR leaders with business intelligence and insight to monitor and manage their organisation (such as hiring statistics, turnover rates, total payroll expense, workforce planning, etc.).
HRMS vs Manual HR Management: A Complete Comparison
| Feature | HRMS | Manual HR Management |
| Employee Data | Centralised and secure | Scattered across files and sheets |
| Payroll Processing | Automated and error-free | Time-consuming and error-prone |
| Attendance Tracking | Real-time and accurate | Manual registers or Excel |
| Leave Management | Policy-based automation | Emails, calls, and confusion |
| Compliance | Built-in statutory support | High risk of non-compliance |
| Performance Reviews | Structured and data-driven | Irregular and subjective |
| Reporting | Instant HR reports | Manual compilation |
| Scalability | Easily scalable | Breaks down as the team grows |
How to Choose the Right HRMS for Your Indian Startup?
Step 1: Identify Your HR Needs
Determine your existing Start-Up HR issues by looking at areas impacted daily, such as incorrect payroll, non-compliance with hours worked and time management, and the simple fact that there are no obvious ways of knowing if any of the above are being done properly.
Easy identification will help new Companies select proper HRMS tools based on their true business needs.
Step 2: Indian Employee Compliance Requirements
You have a responsibility to comply with various regulations that will affect your payroll calculations, such as the PF Act, ESI, TDS, etc., and you have to file specific statutory returns in accordance with their requirements.
If you purchase an HRMS that includes the relevant Indian Laws, it will help reduce your risk and ensure that the payroll and statutory compliance will be compliant and accurate.
Step 3: User-Friendly HRMS
Your teams need an HRMS that is easy to understand and that they can use quickly with minimal training.
An HRMS that is user-friendly will lead to higher rates of adoption of the HRMS and provide fewer HR related questions, and ultimately, your employees will utilize self-service functionality more frequently.
Step 4: Confirm the Scalability
It should be possible to continue using your HR processes as they successfully partner with your newly established headcounts and continue delivering service without interrupting operations or without delaying the system.
To satisfy these criteria, your HRMS must facilitate your ongoing hiring requirements, the opening of additional locations, and fulfilling complex needs of your future HR requirements.
Step 5: Confirm the Integration Capabilities
HRMS should support the smooth integration of payroll applications, attendance applications, and performance applications into a single system.
The elimination of duplicate data, manual labour, and mistakes resulting from having to depend on multiple systems will also help to ensure higher overall efficiency of HR operations through the use of integrated systems.
Step 6: Confirm the Availability of Support and Training
Having a dependable resource for resolving issues quickly is important in order to maintain the proper functioning of HR operations during critical pay and compliance periods.
Providing the appropriate level of onboarding and training will help you maximize the long-term value of your HRMS.
Why Choose Savvy HRMS for Your Indian Startup?
Savvy HRMS is built specifically to support the needs of Indian startups and other companies as they grow; there’s no need to worry about adding complexity to operations when you use it, because it makes everything simple, so companies can concentrate on their growth.
Here are some benefits of using Savvy HRMS:
- It was created with compliance and payroll support specific to India.
- It has an easy-to-use interface for employees and HR teams to use.
- It was built to support the rapid growth of startup companies.
- It can automate many processes involved in HR-related tasks, enabling employees to do more work and saving companies time and reducing mistakes.
- They provide excellent, reliable support to make sure that your company’s use of Savvy HRMS is smooth.
Savvy HRMS provides startups with the ability to move their operations from chaos to clarity by putting in place structured, smooth, scalable solutions for their HR operation.
Conclusion
It’s tough to grow a business rapidly in India, but doing HR doesn’t have to be that way. By using the correct type of HRMS to help Indian start-ups manage their employees more efficiently than previously thought possible, business owners can simplify their employee management processes (i.e., payroll, attendance, performance, and reports), stay compliant with government regulations, and ultimately provide a better experience for their employees while eliminating confusion caused by having multiple systems. The HRMS serves as the foundational component of organizations with high potential for growth.
Would you like to enjoy simple employee management at your small business? Then why not book a Free Demo Today for the Savvy HRMS and get rid of the headache associated with the management of your human capital!
