Online HR Management Software: Features, Tools, And Top Systems
Hiring, onboarding, payroll, compliance—HR never stops.
But what if all of it could run smoother, faster, and without the chaos of spreadsheets and scattered tools?
That’s where online HR management software comes in.
It replaces hours of manual work with automation, confusion with clarity. And it helps businesses manage everything—people, processes, and policies—from a single dashboard.
Whether you are a small team or a growing enterprise, the right HRMS system can help you cut costs, save time, and create a better experience for every employee.
In this guide, we break down the best tools, features to look for, pricing, and how to choose the one that fits your business now and will scale with you tomorrow.
Online HR Management Software?
Online HR management software is a digital tool that helps businesses manage their workforce. It centralises all HR functions—like payroll, attendance, leave, and employee records—into one accessible system.
This software reduces manual work by automating routine tasks. It can calculate salaries, send payslips, track performance, and store all employee data in one place. It also connects with attendance systems and helps HR teams stay compliant with statutory rules.
Key benefits include:
Cost-efficiency by reducing paperwork and admin work
Time-saving through automated payroll and leave workflows
Better accuracy with fewer manual errors
Employee self-service so staff can view payslips, apply for leave, or update personal details on their own
What Is The Best Online HR Management Software For Businesses Today?
There are many good HR tools in the market, but the best one depends on your company’s size, needs, and budget.
Eklavya’s EHRx is one of the top choices for Indian businesses. It offers modules for payroll, attendance, compliance, recruitment, and employee engagement—all in one easy-to-use system. It also supports integration with accounting and admin tools, and is scalable for growing teams.
Other popular names include Keka, Zoho People, and Darwinbox. These platforms also offer solid features, though pricing, customer support, and customisation options vary.
When choosing the best software, consider:
Scalability – can it support your team as you grow?
Ease of use – is the platform user-friendly for HR and employees?
Integrations – does it connect with the systems you already use?
Industry fit – does it meet your specific sector's compliance needs?
The best HR software is the one that fits your current workflow—and can grow with you. Start with your priorities and shortlist tools that match both your budget and long-term goals.
How Do I Choose The Best Online HRMS For My Company?
It starts with knowing what your company needs. To choose the best online HR management software for your company:
1. Check the features - Start with the basics: payroll, leave management, attendance, and employee self-service. Then see if it includes what you need most, like scalability.
2. Understand the pricing model - Is it a flat fixed basis, or does it offer custom pricing? Some may seem cheaper initially, but charge extra for support, storage, or integrations. Make sure you know what’s included.
3. Integrations with other departments - The HR and payroll software must integrate well with finance, accounting, or admin systems.
4. Review security and compliance - Your HRMS will store sensitive data. Make sure it offers secure login, role-based access, and data encryption.
Pro Tip: Always request a free trial or live demo from vendors. Check speed, ease of use, and how well it fits your day-to-day work. Involve your HR team and employees so the decision works for everyone.
What Are The Key Features Of An Online HRMS System?
A good HRMS system does more than just track attendance or calculate salaries. It simplifies admin work, improves employee experience, automates recruitment, and ensures compliance.
Here are the core features you should look for:
Payroll and compensation management
Look for automated payroll runs, editable salary structures, and multi-cycle processing. The system should support bulk uploads, audit trails, and allow custom pay heads for different positions.
Onboarding and offboarding
From generating offer letters to setting up system access, HRMS automates every step of the employee journey. If any employee leaves the organisation, the system calculates FNF (full and final settlement) and collects exit feedback smoothly.
Leave and holiday management
Employees can apply for leaves online, check balances, and track approvals. HR can configure leave types, define rules, and ensure everything runs without manual tracking.
Employee self-service portals
Tools like EHRx by Eklavya offer a self-service dashboard where employees can:
View payslips and leave balance
Submit tax declarations
Update personal info
Download HR documents
This reduces the number of emails your HR team receives and improves transparency.
Document management
Look for an ERP system that comes with a built-in DMS (Document Management System), which can store all employee files like -
ID proofs
Offer letters
Travel bills
Appraisals in one place.
Mobile accessibility
Most platforms now offer dedicated apps or mobile-friendly portals, making it easy for employees to manage tasks on the go—from marking attendance to checking updates.
Safe and secure work environment tools
Many platforms now include digital POSH (Prevention of Sexual Harassment) tracking, grievance redressal forms, and anonymous reporting tools, contributing to a healthier workplace.
Employee Engagement Tools
Every organisation wishes to connect its personnel with its purpose. Yet, the traditional management often leaves employees disengaged. But to ignite their work motivation? Through engagement tools. Look for software that collects feedback through surveys, sets up peer recognition, and monitors morale with pulse checks.
Performance management Tools
Look for software that allows goal setting, regular check-ins, 360-degree feedback, and digital performance reviews. Bonus if it offers supervisor coaching tools, automated reminders, and performance-linked analytics to spot high-performers and training gaps.
What Is HRMS In Salary Processing?
HRMS stands for Human Resource Management System. In salary processing, HRMS plays a key role in making payroll fast, accurate, and fully automated. Let’s say your company has 100 employees. With HRMS in place:
Attendance is tracked digitally
Salary is calculated in minutes, not hours
All payslips are generated and sent in one clic
EPF and ESI reports are ready by the 5th of every month
Without HRMS, these same tasks might take several days and a much higher chance of error.
HRMS in salary helps with:
Automated payroll calculations - HR software collects data on working hours, leave taken, overtime, and deductions to calculate the exact salary each employee should receive. For example, if an employee worked 24 days, took 2 paid leaves, and had ₹500 in tax deductions, the system automatically applies those numbers.
Integrated with attendance and leave - Most HRMS platforms connect directly to biometric systems for attendance. This ensures salary calculations are based on real-time attendance, without manual input or errors.
Tracks statutory compliance
To avoid getting hit by penalties, HRMS ensures your business stays compliant with Indian labour laws. It automatically applies:
EPF (Employee Provident Fund) deductions
ESI (Employee State Insurance) if applicable
TDS (Tax Deducted at Source) based on income tax rules
The software also generates salary slips, which are automatically sent and processed to employees via email. Monthly reports are required for internal audits or government submissions.
How Much Does Online HR Software Cost On Average?
HR software in India typically follows these pricing structures:
Per User/Per Month (PEPM): A common model where businesses pay a monthly fee for each employee. It works well for growing teams because you only pay for what you use.
Flat Monthly Fee: A fixed monthly fee covering a set number of employees. For example, a flat ₹3,495/month plan might include up to 50 users. Beyond that, additional user fees may apply. It’s best suited for teams with stable headcounts and tight budgets who prefer consistent billing.
Tiered Pricing: Costs vary based on the number of employees or features included. For example: ₹6,999/month for up to 100 employees, plus ₹60 per additional employee
Freemium Structure: Basic features are free, with optional paid upgrades for advanced functionalities.
Pay-As-You-Go: Charges based on actual usage, suitable for businesses with fluctuating needs.
To sum it up, the average cost of an online HR management software for small, medium and large enterprises is -
| Company Size | Employee Range | Average Monthly Cost (INR) |
|---|---|---|
| Small Business | 1–50 employees | ₹1,500 – ₹5,000 |
| Mid-Sized Business | 51–500 employees | ₹5,000 – ₹25,000 |
| Large Enterprise | 500+ employees | ₹25,000 and above |
Besides these fees, there are some hidden charges to consider, like -
Setup fees: ₹7,000–₹10,000 (one-time)
Training: ₹2,000–₹5,000 per session
Support (if not free): ₹500–₹2,000/month
Customisation & integrations: ₹5,000–₹20,000+
Ongoing upgrades: ₹1,000–₹3,000/month
Pro tip: Always ask what’s included. Low base pricing often hides essential add-ons behind extra charges.
Frequently Asked Questions About Online HR Management Software
eHRX by Ekklavya is the best online HR management software for the Indian business market. With core functionalities like payroll, centralised employee documentation, attendance management and simplified medical claims, eHRX makes all HR tasks effortless.
A standout feature of an online HR management software is AI automation, which helps acquisition teams and HR managers free up from administrative HR tasks.