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Choosing HR management software for your SME for 2023 and beyond

In the early days of HR, only large businesses had the budget to invest in HR specific tools, tech, and software. But times have changed, and HR management software is now widely available for small and medium-sized enterprises (SMEs) at a fraction of the cost of those early systems.

So, how do you choose the right HR software for your SME? This blog post explores some of the important factors to consider before making your decision.

HR Management Software: An Overview

HR software will help your business manage employee data, track their performance, their learning & development as well as streamline and manage payroll and benefits.

It can also help with onboarding new employees and compliance with employment laws.

Most HR management software is offered as a cloud-based subscription, which means you pay a monthly or yearly fee to access it. Some software providers also offer on-premise versions of their software, which means you would need to install the software on your own servers.

On-premise software can be more expensive than cloud-based software, but it may offer more features and customisation options and ultimately be the best option for both your current and future needs.

Factors to Consider When Choosing HR Management Software

There are a lot of different options for you to choose from, and that can easily become overwhelming.

When choosing HR management software for your SME, there are a few important factors to keep in mind.

Let’s look at those:

Your Company Size

The number of employees you have will impact the features you need and the price you pay for your software. For example, if you have a small team of fewer than 25 employees, you may not need all the bells and whistles that come with some of the more comprehensive HR software packages, those elements that support multi location, or even country and the different legislations and bank holidays, for example.

On the other hand, if you have a large workforce, you will need an HR management solution that can handle a high volume of data, multiple regions and employee records.

Your Budget

As with any business purchase, you need to consider your budget when choosing the best HR management software for your SME.

Be sure to compare the costs of different options and get quotes from multiple vendors before making a decision.

The Features You Need

When considering which HR software to buy, make a list of the features you need. Some common features ones to look for include:

  • Employee self-service
  • Performance tracking
  • Onboarding
  • Payroll and benefits management
  • Recruitment

Once you understand the features you need, you can start narrowing down your options.

Your Industry

The industry you are in may also dictate the type of HR management software you will best you’re your needs.

For example, if you are in a highly regulated industry such as healthcare or finance, you will need an HR solution that can ensure you can consistently and easily meet compliance requirements.

On the other hand, if you are in a more creative industry, you may want an HR solution that offers more flexibility and customisation.

Common HR Management Issues
It’s also important to understand some of the common HR management issues you may face within your organisation, such as:

  • Employee retention
  • Attracting top talent
  • Compliance with employment laws
  • Employee engagement

Addressing these issues is essential to keeping your employees happy, motivated and your business running smoothly.

The right HR management software can help you address these issues and keep your employees engaged and productive.

Common HR Management Software Issues

Once you have a good understanding of the different types of HR management software available and the factors to consider when making your decision, it’s time to take a look at some common issues which can impact implementation and cultural adoption of this type of software.

These include:

Data security

Whatever the size of your business, when choosing HR software, be sure to select a solution that offers robust security features such as data encryption and user authentication.

Employment Law Compliance

Be sure to choose an HR solution that can help you meet compliance requirements for your industry. This can be even more critical if you have staff in different geographical locations around the world or operate within highly regulated industries.

Integration with other business systems

Lack of integration with other key business systems within your organisation is another issue you may face when choosing HR software. Choose an HR solution that offers the most seamless integration with your existing business systems and consider sourcing an integration partner who can help you with the implementation.

User Friendly Interface

Any company-wide HR management system absolutely has to be user-friendly as, if your team cannot navigate the system properly, it will not be effective. We talk a lot as an organisation about employee experience and any adopted HR software has to offer a good user experience.

Main Features of HR Technology for SMEs

Now that you have a good understanding of the different types of HR management software available and the factors to consider before making your decision, it’s time to take a look at some of the main features of this type of software.

Key features include:

Employee self-service

This allows employees to access and update their own records, put in requests, or record annual leave and sick leave, and other general HR admin tasks. This can be a useful tool for reducing the workload of HR staff.

Performance tracking

This feature allows you to track the performance of individual employees and can be extremely useful for identifying areas where employees need improvement or training and also for setting goals.

Recruitment and onboarding

Automating many of the more time intense activities involved in any recruitment campaign can reduce the workload of HR and streamline the entire process.

Likewise, by offering a consistent onboarding process, this will help new employees get acclimated to your company, quickly up to speed and productive and engaged from the start.

Payroll and benefits management

Being able to streamline and manage payroll and benefits for your employees, wherever they are based can again reduce time and ensure consistency of benefits and timely pay for your entire workforce.

HR Management Software Costs

HR software can range in price from a few hundred pounds to several thousand pounds per year, depending on the features and solutions you need.

However, now that HR software and technology have become more accessible with many offering a cloud-based solution, SMEs can now benefit from the same features and solutions at a fraction of the cost.

To get the most bang for your buck, it really is crucial to fully compare the features and costs of different HR management software solutions before making your decision.


The bottom line is that HR management software is a valuable tool for SMEs however, there is no one-size-fits-all solution. It shouldn’t be complicated, expensive, or time-consuming – the key is to find one that meets the specific needs of your business, not just now but for the foreseeable future too.

Jigsaw Cloud can help you find the right HR management software solution for your business and we offer a free no-obligation consultation so that you can learn more about our solutions and how they can benefit your business.

Schedule your free software assessment today!

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