Which HR software is best for startups?

  • Last Updated : August 23, 2023
  • 4 Min Read
Selecting the right HR software for your startup

As a startup business owner, you probably have a lot on your plate already, including hiring employees, looking for investors, and establishing different organizational policies. On top of all this, manually performing HR operations will only drain you and cause errors in the process. That's why it's essential to adopt HR software that automates these operations and works the way your organization does. The HR software that you select for your startup should:

1. Take hassles out of recruitment

You are always on the lookout for top talent who can take your startup to the next level. The HR software that you select should simplify the many steps and paperwork involved in recruitment. You should be able to create various job openings and advertise them on different job boards and social media. As you start receiving applications from candidates, your HR tool should be able to parse resumes and store them automatically in a centralized database. If you're interviewing candidates from different locations, you should be able to conduct video interviews through the system, and the system should support hiring pipelines so that you have a clear view of each recruitment stage. You should also be able to conduct interview assessments with the system, as well as manage interview assessments, run background checks, initiate offer letters, and onboard candidates.

2. Automate paperwork

Managing paperwork is another HR task that can eat a major chunk of your time. That's why the HR tech tool that you select should centralize, simplify, and automate the paperwork associated with onboarding, attendance, leave, learning, performance, and offboarding. For instance, when it comes to onboarding, your HR software should support all the forms your candidates need to fill out for legal employment. As part of onboarding, you should be able to exchange documents like appointment letters and proofs of identity with your candidates online through the system. When it comes to attendance, the HR software should help you move away from spreadsheets and store attendance data automatically in the centralized module. It should also come with appraisal templates and self-evaluation forms that can be customized and shared easily with your employees during performance reviews.

3. Simplify everyday HR tasks

When you don't have a proper system in place to manage your routine HR operations, over time you'll find them very tiring, and they may even cause compliance issues. That's why your HR software should automate operations like attendance, leave, payroll, and time off management. For instance, your employees should be able to do online check-in and check-out, apply for leave, and track the time they spend on different projects using digital timesheets. It should come with a payroll management system that automates payroll calculations, generates payslips, keeps payroll records updated, and lets employees submit reimbursement forms.

4. Ease compliance

Compliance is one of the essential aspects of HR management, and your HR software should manage your activities in a way that aligns with applicable laws. For instance, since it's mandatory to provide paid maternity leave for six months in India, your HR software should help you create a leave type that applies to female employees. Further, the system should have all the reports that highlight that you've adhered to the suitable policies so your organization is audit-ready all the time. Similarly, since HR management involves a lot of sensitive data, your HR software should come with high-grade data encryption features and role-based data access to ensure that the sensitive data doesn't land in the wrong hands.

5. Facilitate performance management

Lastly, since performance management is crucial to unlocking each employee's full potential, it's essential that your HR software simplifies performance appraisals and makes the process employee-centric. You should be able to set goals and KRAs for your employees and track them seamlessly. Additionally, you should be able to run self-appraisals so that you have a clear idea of how your employees perceive their performance. You should also be able to run 360-degree feedback so that you're able to rate employees without any biases using the inputs provided by everybody that your employees have worked with. Further, you should be able to run appraisal cycles just the way you want regularly.

Choosing the best HR software for your startup

Having HR software for your startup can truly make employee management a breeze. You'll be able to bring all of your HR activities under a single roof so that it's easy to track and manage them. We hope this list gave you a better idea about what to look for in your next HR software!

Zoho People, our HR software, is a perfect choice for startups that are looking to simplify HR tasks. Zoho People has everything you'll ever need to manage employees in the best possible way and to ensure compliance. Learn more about Zoho People!

Also Read:Everything you need to know about HR Software

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  • tarika

    Content Specialist at Zoho People

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