Gone are the days when you had to maintain manual records of your workforce. The so called “HR software market” is gaining immense popularity with every passing day. And to rise up to the requirement, there are innumerable HR software vendors that are offering varied solutions for the same.

As per reports furnished after an extensive study related to “Deloitte’s 2017 Global Human Capital Trends”, it was found that 73% of the business (regardless of the size of the business entity) bank heavily upon the concept of “digital HR”, a trend that has caught up in the field of human capital management rapidly.

Why does a business need digital HR set up?

There are several hiccups and technical snags that make businesses realize the need for digital HR solutions. Given below are few such instances. They are as follows-

Lack of dedicated HR resource

You will come across many such business entities that do not have individuals with well defined HR job profile. These businesses (usually start-ups) assign the task to a manager that manages other departments too in a parallel manner. He works as an HR administrator and is also entrusted with roles involving other departments. This individual has to take care of employee grievances, payroll system, recruitment, promotions, and related HR tasks all single-handedly.

Compliance, book and record maintenance

Regulatory compliance is something that your organization has to adhere to. Most importantly, rules and norms related to the same change always from time to time. As far as compliance is concerned, there are many aspects that have to be taken into account and these include tax codes, abiding by labor laws, reforms in healthcare and record keeping. It is not possible for an individual to keep track of all of these.


Not every employee will perform in the same manner. As such, the incentives enjoyed by any two employees will not be the same. Unless there is a systematic and well organized performance rating scale and management system, it is difficult to assess employees accurately.

Now that the loopholes of a manual HR system/lack of proper HR administrator have been highlighted, let us find out how you can overcome the same with the so called “digital HR” system and what you require for the same.

What are your options?

Basically, you have 3 options to select from depending upon your aims and objectives. These are as follows-

  • Strategic HR systems
  • Integrated HR systems
  • Core HR systems

What to expect from HR software system

Selecting the right HR software can be tricky and challenging. However, the system that you opt for must be such that it helps you to overcome the setbacks mentioned above. The HR key software features to look out for include a system that can take care of the following-

  • One of the key requisites is to invest in a system that will give you the highest ROI that is equipped with modern solutions
  • Automated taking care of administrative tasks
  • Record keeping
  • Regulatory compliance
  • Allowing HR managers to access HR tools effectively for better human resource management
  • Recruitment
  • Attrition
  • Retaining employees
  • Incentives and promotions
  • Promotions
  • Mobile access (compatible with majority of the OS like iOS, Android)
  • Self service access
  • Applicant on boarding
  • Training
  • Induction
  • Applicant tracking
  • Succession planning
  • Compensation and rewards
  • Administration of benefits
  • Tracking attendance
  • Tracking in and out time of employees
  • Performance management and tracking
  • Reporting
  • Hierarchy
  • Allowing access to tools meant for collaboration

If you find that the HR system that you are investing in is meeting the above requirements, it is worth making the investment to get the best returns. In this way, you will do justice not just for your business but also for the employees working in your organization.

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