Why HR Software is Important for SMEs
Running a small business comes with big responsibilities. As your team grows, managing payroll, attendance, recruitment, and compliance manually can quickly become overwhelming. For SMEs, HR software isn’t just a convenience, it’s a necessity. It streamlines processes, reduces errors, ensures compliance, and frees up your time so you can focus on scaling your business.
In 2025, digital transformation isn’t optional. Small businesses that adopt HR technology are able to:
Automate repetitive tasks
- Gain real-time workforce insights
- Stay compliant with local labor laws
- Improve employee engagement and retention
And when it comes to finding the right solution, choosing the right HR software can be a game-changer.
Top HR Software for Small Businesses
Here’s our list of the best HR software in 2025.
- 247HRM
- Zoho People
- BambooHR
- Keka HR
- GreytHR
- HROne
- Kredily
- Pocket HRMS
- SumHR
- SAP SuccessFactors
247HRM – Best HR Software for SMEs
Overview:
247HRM is a comprehensive HRMS designed specifically for small and medium-sized businesses in India. It covers the entire employee lifecycle from hiring to retirement while ensuring compliance and data accuracy.
Best For:
SMEs looking for an affordable, scalable, and locally compliant HR software.
Key Features:
Core HRMS with centralized employee database
Attendance & leave management
Performance management with AI-driven insights
Recruitment tracking & onboarding
Employee self-service portal
Mobile accessibility
Why Choose It:
247HRM stands out for its India-specific compliance features, AI-powered analytics, customization flexibility, and exceptional customer support. It’s designed to grow with your business while keeping costs under control.
Zoho People
Overview:
A cloud-based HR solution suitable for small teams with budget constraints.
Best For:
Small businesses needing basic HR functions at a low cost.
Key Features:
- Time & attendance tracking
- Performance reviews
- Document management
- Leave management
Why Choose It:
Affordable pricing with decent features for small teams, though limited scalability for growing companies.
BambooHR
Overview:
A people-first HR platform focused on improving workplace culture.
Best For:
Businesses that prioritize employee engagement and experience.
Key Features:
- Applicant tracking
- Employee records management
- Performance feedback tools
- Advanced reporting
Why Choose It:
Great for culture-driven organizations, but pricing may be higher for smaller teams.
Keka HR
Overview:
A popular HRMS in India known for its modern UI and payroll capabilities.
Best For:
Companies that want strong payroll automation with integrated workforce management.
Key Features:
- Payroll & compliance automation
- Attendance tracking
- Performance management
- Mobile app
Why Choose It:
Smooth payroll processing and user-friendly interface, though advanced HR modules may cost extra.
HROne
Overview:
HROne is a modern HR platform with strong automation capabilities, helping businesses save time and improve decision-making through AI-driven workflows.
Best For:
Businesses looking for advanced automation with minimal manual intervention.
Key Features:
- AI-powered HR workflows
- Payroll & compliance
- Attendance & leave management
- Performance reviews
- Mobile app
Why Choose It:
Offers strong automation and analytics features, but pricing may be higher for smaller teams.
Kredily
Overview:
Kredily is an Indian HR software that offers free HR and payroll tools for small businesses, making it a great choice for budget-conscious startups.
Best For:
Small teams or startups looking for a free HR solution.
Key Features:
- Payroll processing
- Attendance & leave management
- Employee self-service
- Basic compliance tools
Why Choose It:
The free plan is attractive, but advanced features require paid upgrades.
Pocket HRMS
Overview:
Cloud-based HR software designed for mobile-first teams.
Best For:
Teams that manage HR on-the-go.
Key Features:
- Mobile HR operations
- Payroll
- Employee self-service
- Chatbot assistance
Why Choose It:
Mobile-friendly but limited advanced HR capabilities.
SumHR
Overview:
Flexible HR software ideal for agile startups.
Best For:
Startups looking for an easy-to-use HR solution.
Key Features:
- Attendance & leave
- Payroll
- OKRs & performance tracking
- Document management
Why Choose It:
Simple, fast setup, but limited in advanced HR analytics.
SAP SuccessFactors
Overview:
A global HR platform suitable for large and growing businesses.
Best For:
SMEs planning for enterprise-level scaling.
Key Features:
- Talent management
- Learning & development
- Workforce analytics
- Global compliance
Why Choose It:
Rich in features, but may be overkill for very small teams.
Product Comparison
| Product | Pros | Cons |
|---|---|---|
| 247HRM | Comprehensive HR and payroll tools; User-friendly interface; Customizable features; Good customer support | May have a steeper learning curve initially; Pricing details less transparent |
| Zoho People | Highly customizable; Strong integration ecosystem; Good automation; Affordable pricing | Interface may feel complex for new users; Limited advanced payroll features |
| BambooHR | Intuitive UI; Strong employee self-service features; Good reporting and analytics | Payroll features limited outside US; Cost can be high for small teams |
| Keka HR | Comprehensive payroll and HR modules; Strong automation; Competitive pricing | Mobile app usability issues reported by some users |
| GreytHR | Affordable; Good payroll and compliance; Easy statutory compliance | User interface can be outdated; Limited integrations |
| Kredily | Strong payroll automation; Good compliance management; Easy to use | Customer support limitations; Less global payroll coverage |
| Pocket HRMS | Feature-rich with mobile app; Good at attendance and leave management | Interface can be slow; Pricing details not always clear |
| SumHR | User-friendly; Good payroll and attendance features; Scalable | Smaller company footprint; Limited advanced integrations |
| SAP SuccessFactors | Enterprise-grade HRIS; Highly customizable; Strong analytics and performance | Expensive; Complex implementation; Overkill for SMBs |
G2 Ratings and Reviews
| Product | Average Rating (out of 5) | Positive Feedback | Negative Feedback |
|---|---|---|---|
| 247HRM | 4.5 | Ease of use; Comprehensive features; Good support | Initial setup complexity; Pricing info unclear |
| Zoho People | 4.4 | Customizability; Integration; Value | Complex UI; Limited payroll outside India |
| BambooHR | 4.4 | User-friendly; Employee self-service; Reporting | Limited global payroll features; Pricey |
| Keka HR | 4.5 | Payroll accuracy; Automation; Support | Mobile app usability issues |
| GreytHR | 4.4 | Affordability; Compliance ease; Payroll | Outdated UI; Limited advanced integrations |
| Kredily | 4.1 | Simplicity; Payroll automation | Customer support; Limited global reach |
| Pocket HRMS | 4.4 | Feature rich; Mobile app; Attendance | Interface performance; Pricing clarity |
| SumHR | 4.1 | User-friendly; Good automation | Smaller feature set; Limited integrations |
| SAP SuccessFactors | 4.0 | Customization; Enterprise features; Analytics | Expensive; Complex implementation |
Why Choose 247HRM
- India-specific compliance built-in
- AI-powered performance insights
- Scalable for growing SMEs
- Affordable pricing without compromising features
- Exceptional customer support
- End-to-end HR lifecycle management
With 247HRM, you don’t just get software—you get a partner in your business growth.
Tips for Choosing the Right HR Software
- Assess your current HR challenges and needs.
- Set a realistic budget.
- Look for scalability for future growth.
- Check compliance capabilities for your region.
- Prioritize ease of use and employee adoption.
- Evaluate vendor support and training resources.
Frequently Asked Questions
Get answers to common questions about 247HRM.
You can get started with 247HRM in just few days. Our team handles everything from setup and data migration to user training, ensuring a smooth and efficient onboarding experience tailored to your business needs.
Yes, platforms like 247HRM automate payroll and keep you compliant.
Costs vary, but solutions like 247HRM are budget-friendly for SMEs.
247HRM prioritizes your data security with robust encryption, regular backups, and role-based access controls. We comply with industry standards and local data protection regulations, including GDPR and India’s IT Act, to ensure your HR data stays safe, private, and fully compliant.
Absolutely, it saves time, reduces errors, and improves efficiency.
Most SMEs can get started in just a few days.
