Why Indian SMEs Struggle with HR & How to Fix It

In India, running a small or medium-sized firm (SME) is challenging. Business owners are responsible for overseeing all aspects of their company, including operations, sales, and—above all—staff. Managing human resources, however, can be very difficult at times.
Spreadsheets and paper records are still commonplace in SMEs’ HR management processes. Errors, confusion, and inefficiency result from this. What causes Indian SMEs to have HR problems, and how can they resolve them?

HR Difficulties for Indian SMEs

1. Too Much Manual Work: Payroll, attendance monitoring, and leave administration are all handled manually by many SMEs. This raises the likelihood of mistakes and requires a lot of time.

2. Problems with Compliance: Indian labor regulations are complicated. Many SMEs find it difficult to stay on top of tax, gratuity, PF, and ESI regulations. A small mistake can lead to penalties.

3. Employee Data Management: It is difficult to store and organize employee information. Without a proper human resource management system software, finding important data quickly becomes difficult.

4. Lack of HR Expertise: Many SMEs do not have dedicated HR teams. Business owners or managers handle HR tasks, which means they have less time for other important work.

5.Difficulty in Payroll Processing: Salary calculations, tax deductions, and compliance checks are time-consuming. Without HR software systems, payroll errors can frustrate employees and cause legal problems.

How to Fix These HR Problems

Human resource management solutions are the most effective option for Indian SMEs to enhance HR management. Here’s how:

Use the Best Small Business HR Software
Payroll, attendance, and leave tracking may all be automated by investing in the best HR software for small businesses. Errors are decreased and time is saved.
Automate Compliance
HR software assists SMEs in maintaining labour legislation compliance. It ensures there are no legal problems by automatically calculating taxes, PF, and ESI.
Store Employee Data in One Place
All employee data is stored in a single database by a human resource management system software. Accessing and updating records is made simple as a result.
Self-Service Portals for Employees
Employees may mark attendance, apply for leaves, and view their paystubs without relying on HR supervisors when they have access to an HR system.
Use HR Software to Simplify Payroll
With the right HR software, it’s simple and error-free to process salaries. It ensures on-time payments by automating salary slips, tax computations, and deductions.

Best HR Software for Indian SMEs

Clan

Clan is a comprehensive business management solution that includes PM, CRM, payroll, finance, and more. It is not only an HR program. The fact that it is free for small businesses and reasonably priced for mid- and large-sized corporations sets it apart. It assists SMEs in managing everything from a single platform, streamlining HR duties, and maintaining compliance.

The fact that it is free for small businesses and reasonably priced for mid- and large-sized corporations sets it apart. It assists SMEs in managing everything from a single platform, streamlining HR duties, and maintaining compliance.
Pricing:
Clan is priced at a maximum of ₹119 per employee per month. Pay for Active employees only

Keka

Keka is an HR software with a payroll focus that helps SMEs with compliance management, wage processing, and attendance tracking.

Pricing:

Keka HR offers pricing starting at Rs. 6999 monthly for up to 100 employees.

Zoho

Cloud-based HR software Zoho People assists companies with performance reviews, leave monitoring, and staff administration.