What is Human Resource Management Software?

HR Management Software

Imagine an organization with hundreds of employees but still relying on manual, old school techniques for administration and employee management.

This results in having an unproductive and disorganized taskforce wasting most of the time in doing unnecessary tasks.  

Hence, to deal with this inefficiency, a smarter and unified solution is being opted by many companies. This contemporary approach is an HR Management software, established to streamline and automate HR related activities.

Earlier it was believed that such technological innovations were purposed to serve the bigger organization.

But over a while, even SMEs are now shifting over HR software to cultivate productivity and efficiency at a large scale.

The Indian Market for Human Resources Management System – Present and Future

Over the past few years, we have witnessed a consistent rise in demand and market cap of HR technology in India.

According to IMARC, the India human resource (HR) technology market size was US$ 1,040 Million in 2023 and it will reach US$ 2,170 Million by 2032, at a CAGR of 8.3% during 2024-2032.

Impact of COVID-19

The first case of COVID-19 in India was diagnosed in early 2020. Starting from China, the virus soon engulfed the almost entire world, resulting in being tagged as a pandemic by WHO.

This unfortunate situation had severely affected businesses and eventually devastated economies.

This has made work-from-home culture a commonly accepted norm.

Trade pundits and experts forecast this as a long-term implementation for many businesses.

What is HRMS software and its components?

An HRMS software is a next-gen technological setup designed to aid human resource professionals to manage everything from employee hire to retire.

A modern HR management system focuses on people and not just processes, enabling HR managers to regulate HR operations single-handedly and efficiently. Now the question arises, “What should be an ideal and perfect HRMS system?

Hence, below we are presenting a few must-have components of an HR management solution –  

Centralized and streamlined database 

Long gone are the days of managing piles of papers and racks of files. A modern HR management solution offers an efficient platform to keep vital employees’ and organizational info organized and accessible at fingertips.

Redefined recruitment  

One of the most desired components required in an HRMS solution. The selection of a wrong and inefficient asset may result in efficiency and monitory loss.  

Performance evaluation

Employee retention is more challenging than selection.

This calls for timely evaluation and appreciation of employee performance. Thus, having tools for performance assessment becomes an absolute need.

Increased employee involvement 

The system should not be a channel of one-way communication. Today’s employees demand equal involvement in the organizational structure.

Hence an HRMS system needs to be equipped with the tools and features promoting employee collaboration.  

Analyze HR trends

In today’s competitive scenario, market analysis is a much-needed component for HR managers. Data helps them improving the company’s productivity, increase worker retention, and implement better policies.  

Manage finance/payroll

This has been the most complex structure for HR managers to deal with. Right from employee contract to salary declaration, expense management to payslip creation, an HRMS is expected to have a robust Payroll component.  

Use and benefit of HRMS software: A statistical review 

As per a global survey conducted on Human Resources Technology the data revealed how tech portfolios are helping organizations to modernize and streamline HR activities.

Few are the findings that are presented below:

Benefit HRMS System

Adding to this, the survey also focuses on the benefits of cloud-based HR software. The cloud solution is gaining massive popularity, as per the stats discussed below:


(Entire data is based on the 2020 survey carried out by PwC)

Reasons to use HRMS software

COVID-19 has made it necessary than ever for organizations to opt and rely on an HRMS or human resource management system solution.

Through this blog we are going to enlighten our readers with some of the major reasons that make companies replace the manual management of human resource activities with contemporary HR management solution:


Time is money, and hence it is the biggest reason for deploying HR management system in your organization.

Automating process not only saves time and resources but helps companies control their expenses too.

From reduced labor to optimizing your taskforce, the HR software handles every critical issue that makes organizations deliver more in less time.

Finding the right talent  

As per the HR technology survey 2020, 58% of the total respondents face challenges in finding, acquiring and retaining the right talent from the pool.

To simplify the recruitment process companies are rapidly selecting HR software to digitize and speed-up their recruitment process.

Improving employee experience  

In the same survey, 42% of respondents find it difficult to improve the employee experience. This can be achieved through increased employee involvement.

With the help of an efficient HR software employees can manage their own profiles, fill their own details and can also raise an issue or give suggestions regarding the organizational management, thus realizing better experience.


Establishing effective communication looks barely possible through old techniques. Multiple are the modern tools in HR software that help to set uninterrupted and easy communication among and within the teams.

HR can instantly share messages, important announcements, or declarations with a particular employee, team, or department.

Any change in policies can be immediately uploaded and shared with the entire organization in real-time. Thus, this becomes a prime need for organizations to acquire HRMS systems.  


This is one of the important reasons why companies are choosing automated HR systems over manual and traditional approaches.

Since every organization aims at growing bigger, you must have a system to make this period of transformation or expansion easier for you.

Manual methods could only complicate the processes, whilst a scalable HR software can easily adapt to the expansion within no time.  

These are the various reasons that make HR management software a must-have tool for your organization.

TecWork, an initiative which empower business through innovative solutions presents TecWork HRMS

It is a complete package of tools and features designed to cut the complexities of employee management. For detailed info about plans and features, reach us at sales@tecwrk.com


About Us

TecWork HRMS is a product of TecWork Global Business Solutions Pvt. Ltd. where cutting-edge technology converges with business excellence. We are dedicated to empowering businesses through innovative solutions that specialize in and seamlessly align with diverse business objectives like fleet management, quality management, HR management and such.