HR Tech Adoption in MSMEs: Challenges & Solutions

HR Tech Adoption in MSMEs: Challenges & Solutions
HR Tech Adoption in MSMEs: Challenges & Solutions

Automation with HR technology has become essential for modern businesses, especially those in the MSME space.

This is an exclusive article series conducted by Santosh Vaswani, Editor at CIO News, and Sayeed Anjum, Co-founder and CTO, greytHR.

About, Sayeed Anjum, co-founder and CTO, greytHR: Sayeed leads the R&D, innovation labs, and product development initiatives. As a passionate techno-marketing professional, he aims to establish his company as a thought leader in the HR tech domain. Sayeed focuses on improving the product development process and has been overseeing all aspects of product development, including requirements engineering, usability, programming, and quality, since 1994. As the custodian of Greytip’s flagship cloud HR platform, greytHR, he is committed to addressing the diverse challenges of the HR fraternity.

The role of HR is evolving faster than anticipated. The days of HR being limited to operational tasks are over. It’s now a critical strategic function that helps shape business decisions. This shift is particularly apparent in MSMEs, where smaller teams may struggle to manage HR operations effectively.

This article will delve into the most common HR challenges that MSMEs face. We’ll also explore how HR tech platforms can help overcome them.

Eliminating Manual Work and Its Inefficiencies

Legacy HR procedures and manual tasks consume a lot of time. They may cause errors and delays that can even affect the functioning of other departments. An HR tech platform will automate processes so that more tasks can be done faster and better. AI-driven analytics can help HR and business owners make data-driven decisions. As a result, HR gets more time to focus on the business-critical aspects of the company.

Tackling Information Management Complexities

HR must manage innumerable records for varied purposes. Finding the right information at the right time can be challenging. Digital documentation on the cloud makes information access easy for every stakeholder. It also helps centralize the employee database. Additionally, employee self-service (ESS) lets employees update their information online so that HR can focus on value-added work.

Making Repetitive Tasks Error-Free

Heavy workloads and boring manual tasks can lead to frequent errors. These inaccuracies may cause delays and tarnish the credibility of the HR function. Eliminating human involvement in complicated and repeated processes will reduce these errors. A human resource management system (HRMS) has multiple tools to execute a variety of tasks more quickly and precisely. Technology-driven payroll processing is a case in point.

Cutting Paperwork and Related Costs

Paperwork and spreadsheet-based manual processes are two factors that drive up the operating costs of a company. Therefore, it is crucial for emerging businesses to digitize their HR processes to become more efficient. HR tech platforms enable HR teams to collect and process employee documents and applications online. Paperless onboarding and exit are two common examples. This shift will help save time and resources, resulting in a reduction in HR costs.

Ironing Out the Hurdles of Employees

Delays in onboarding, errors in payroll, and bottlenecks in paperwork may lead to lower productivity and morale. Automation of HR tasks solves all these issues and reduces administrative headaches. The employee self-service (ESS) option makes it easy for employees to access any information and perform basic HR tasks. Chatbots handle basic queries instantly. This, in turn, reduces HR time and effort. Also, it can result in improved employee experience, retention, and productivity.

Evading Compliance Lapses

New laws are introduced, and old ones get amended. Maintaining compliance with various statutory requirements may be stressful and time-consuming. In addition, paper-based documentation may make data management and reporting cumbersome and risky. An HRMS can do all this smoothly and safely with minimal human intervention. Computations, form generation, and tax returns will no longer be challenging. Everything can happen online!

Countering Threats to Employee Data

Protecting the privacy of sensitive employee information should be an organization’s top priority. On the other hand, traditional methods of data storage might leave businesses open to the risk of theft and improper usage of data. The automation of HR processes is helpful in this regard. It helps companies securely transfer HR data to the cloud while maintaining access control. Trusted HRMS providers use sophisticated security and encryption technologies for the same.

Summing Up

Automation with HR technology has become essential for modern businesses, especially those in the MSME space. By deploying an HRMS, they can streamline their HR processes, improve efficiency, reduce costs, and improve employee satisfaction while meeting legal requirements. There are several HR tech platforms, but it is pragmatic to use a fully integrated cloud-based HRMS that is flexible, reliable, and affordable.

Visit to learn more about greytHR HRMS.

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