Manual HR processes often slow down operations, cause errors, and reduce efficiency—holding back overall business growth. For HR heads, finance leaders, and IT managers, these issues are part of everyday reality. Automating HR operations changes this by cutting out repetitive work and giving teams more time to focus on strategy.
Recent surveys show that nearly a 25% of HR leaders are planning to adopt automation tools for performance management, recognising their impact on retention and employee experience.
In this blog, you’ll find two carefully curated lists of HR automation tools, a quick decision-making guide, and answers to common questions. This helps you choose the right software for your organisation, as per your current needs.
At a Glance
HR automation tools are essential for reducing manual HR tasks and improving efficiency for startups and SMEs in India.
Choosing between an HRMS and dedicated tools depends on whether you need a comprehensive solution or specialised automation for specific HR functions.
Compliance with local labour laws and regulations is seamlessly handled by HR automation tools, reducing the risk of errors.
HR automation simplifies complex processes and also enables real-time data sync across all HR functions, improving accuracy and saving time.
Craze offers a flexible HR automation solution that can start small with core HR and scale as your business grows, with no hidden fees and full access to all features.
For businesses in India, HR processes can quickly become overwhelming as they grow. This is especially true for SMEs (Small and Medium Enterprises) that struggle with the growing workflow. Manual HR tasks consume valuable time and resources, resulting in inefficiency and errors.
The demands of handling workforce management, compliance, and performance reviews without the right tools can become a major challenge. HR automation is the solution to overcoming such issues. This is how it mainly helps.
1. It Addresses the Challenges of Manual HR Processes
Manual HR processes are often riddled with mistakes and inefficiencies. HR teams often find themselves bogged down in repetitive administrative tasks, which divert their attention away from more strategic objectives. Automation eases this burden by minimising human error and reducing the time spent on manual activities.
Manual errors: Excel sheets, emails, and paper-based systems are prone to mistakes.
Time-consuming processes: Manually handling payroll, leave tracking, and document management slows down operations.
Resource drain: HR teams spend too much time on administrative tasks instead of strategic work.
2. It Streamlines Complex Workforce Management Tasks
Workforce management becomes increasingly complex as your team grows. Startups and SMEs typically juggle a range of processes. Without automation, this complexity can quickly spiral out of control.
Automating these processes simplifies management, ensuring a smooth and efficient workflow.
Centralised management: Keep track of all employee data, payroll, and performance records in one place.
Reduced workload: Automation allows HR teams to focus on strategic tasks like employee development rather than manual data entry.
Scalable solutions: As your business grows, HR automation scales with your needs.
3. It Achieves Compliance Without Overloading HR Teams
Staying compliant with India’s evolving labour laws is one of the biggest challenges HR teams face. For startups and SMEs, this task becomes even more difficult without the right tools.
Manual tracking of legal updates, tax filings, and payroll regulations is time-consuming and prone to error. HR automation tools ensure that compliance is maintained automatically, without adding extra burden.
Automatic updates: Stay compliant with tax and labour laws without manual effort.
Error-free calculations: Payroll, PF, ESIC, and TDS calculations are done automatically.
Reduced legal risk: Compliance-related mistakes can be costly. Automation minimises this risk.
Also Read: Guide to Human Resource Management Systems (HRMS)
Knowing how automation can simplify HR is great—but how do you actually put it to work in your business? That’s where picking the right tool comes in.
Not all HR tools are the same. To pick the one that truly fits your business, here are the main factors to keep in mind:
Regulatory Compliance (Readiness): Make sure the software handles Indian statutory requirements like PF, ESI, PT, TDS, and LWF, so you don’t have to track these manually.
Automation Capabilities: Look for tools that can automate workflows, approvals, reminders, and rules—anything that reduces repetitive work for your HR team.
Ease of Use: The software should be simple to use on both desktop and mobile, so employees and managers can adopt it quickly.
Integrations: Check if it connects with payroll banks, accounting systems, attendance hardware, and other tools you already use.
Pricing & Transparency: Clear pricing without hidden fees helps you plan budgets effectively.
Scalability: Choose a tool that grows with your team, whether you’re a startup or an SME, without requiring major changes later.
By keeping these factors in mind, you can focus on selecting HR software that actually improves efficiency and reduces HR headaches.
List A will cover HRMS suites for end-to-end HR automation, while List B will highlight tools for specific automation needs.
List A: HRMS Suites
Tool | Type | What it Automates | Best For |
Craze | HRMS Suite | HR, Payroll, Finance, IT, Performance, Leave & Attendance, Engagement, Shifts, IAM | Startups & Growing companies seeking end-to-end automation in HR, Payroll, Finance & IT |
Keka | HRMS Suite | HR, Payroll, Leave, Attendance | large enterprises needing a full HR suite for a blue-collar workforce |
GreytHR | HRMS Suite | HR, Payroll, Leave, Attendance | SMEs requiring comprehensive HR management |
Zoho People | HRMS Suite | HR, Payroll, Leave, Attendance | Businesses using other Zoho ecosystem products |
Darwinbox | HRMS Suite | HR, Payroll, Leave, Attendance, Performance | Enterprises needing robust HR capabilities |
List B: Dedicated HR Automation Tools
Tool | Type | What it Automates | Best For |
Truein | Dedicated Tool | Attendance Management | Companies with multi-site or contractual workforce |
RazorpayX Payroll | Dedicated Tool | Payroll Processing, Compliance, Leave Tracking | Startups & enterprises seeking automated payroll |
Leegality | Dedicated Tool | eSignatures, Document Automation | Businesses requiring secure digital documentation |
Synergita | Dedicated Tool | Performance Management | Teams needing performance management solutions |
Engagewith | Dedicated Tool | Employee Engagement, Recognition | Companies focusing on employee experience |
Whether it's payroll, attendance, or performance management, finding the right software can make a huge difference in improving your team’s efficiency. These tools cover both all-in-one HRMS suites and focused automation tools.
Here’s a closer look at the top HR automation solutions that can help your team work smarter, starting with full-suite HRMS platforms.
1. Craze
Craze is a people-operating system to automate HR, payroll, finance, compliance, and IT use cases for your company. The main advantage is that you can automate a specific area first (e.g., payroll, attendance, performance, or identity access) and pay only for that; you can add other modules later, and your data stays in sync.
Key Features:
Modular HRMS (Core HR, Payroll, Leave, Attendance, Performance, engagement, Documents, IT/Assets, IAM) with real-time data sync.
HR lifecycle management automation from onboarding to exit.
IAM: SSO (SAML/OIDC), SCIM provisioning, joiner-mover-leaver automation, role-based access, maker-checker approvals, instant deprovisioning, audit logs, MFA.
India-native payroll & statutory outputs (EPF, ESI, PT, TDS, Form 24Q).
Automation rules, reminders, workflows, ESS (payslips/leave/attendance).
Best For: Startups & Growing companies seeking end-to-end automation in HR, Payroll, Finance & IT efficiently.
Pros:
Complete HR management under one platform.
Native payroll compliance built for India.
Cons:
It might be more than required for very small teams.
Best suited for businesses with structured HR needs.
Starting Price: Starts at ₹60 per user/month. No hidden charges, lock-ins, or setup fees.
2. Keka
Keka is a user-friendly HRMS that automates HR, payroll, and performance management. The tool integrates payroll and statutory outputs seamlessly for Indian businesses, offering full compliance and simplified processes.
Key Features:
Payroll automation
Leave management
Performance management
Attendance tracking.
Best For: large enterprises needing a full HR suite for a blue-collar workforce.
Pros:
Easy to use and implement.
Strong performance and payroll features.
Cons:
Limited customisation options for some features.
Support can sometimes be slow during peak times.
Starting Price: ₹9,999/month (For up to 100 employees) ₹90 per additional employee.
3. GreytHR
greytHR is a comprehensive HRMS platform that covers payroll, attendance, compliance, and leave management. The software integrates with payroll banks and statutory systems to ensure accurate compliance for businesses in India.
Key Features:
Payroll management
Leave tracking
Attendance management
Compliance reporting
Best For:
SMEs that require a budget-friendly HRMS that covers all essential HR functions.
Pros:
Affordable and easy to implement.
Strong compliance tracking features.
Cons:
UI could be improved for better navigation.
Limited integrations with advanced HR tools.
Starting Price:
Essential: ₹3,495 / month (Includes 50 employees)
4. Zoho People
Zoho People is a flexible HRMS platform that helps you automate HR tasks like leave management, payroll, and performance tracking. Payroll and statutory compliance are integrated natively, making it easier for Indian businesses to run smooth operations.
Key Features:
Payroll management
Leave tracking
Attendance management
Compliance reporting
Best For:
Businesses that are already using other Zoho ecosystem products
Pros:
Highly customisable workflows and templates
Good support and a user-friendly interface
Cons:
Extra ₹5750/month charges for premium support.
Some modules require additional costs.
Starting Price: ₹120 per user/month for the professional plan
5. Darwinbox
Darwinbox provides a full-suite HRMS with strong payroll management and performance tracking. It automates tasks such as leave, attendance, and payroll processing, making it suitable for larger enterprises with complex HR operations.
Key Features:
Payroll management
Leave tracking
Performance tracking
Compliance reporting
Best For:
Large enterprises need robust HR capabilities
Pros:
Scalable and capable of handling large teams
Excellent reporting and analytics features
Cons:
Overly complex for smaller businesses
Higher cost compared to other HRMS
Pricing: Custom pricing based on company size
For companies that don’t need a full HRMS, dedicated HR automation tools can handle specific functions like attendance, leave management, and performance tracking with ease.
1. Truein
Truein is an attendance management tool that automates attendance tracking through biometric devices and geo-fencing technology. It saves time, reduces errors, and gives you real-time visibility of your workforce.
Key Features:
Biometric and geo-fencing attendance
Leave management
Visitor management
Reporting and analytics
Best For:
Companies with multiple locations or remote employees
Teams needing accurate attendance tracking with minimal manual effort
Pros:
Simple setup and easy to use
Real-time attendance monitoring
Cons:
Limited HR functionalities beyond attendance
Fewer integration options with full HRMS
Pricing:
Premium - ₹390/user/year (₹69,000 /year (base price)
2. RazorpayX Payroll
RazorpayX Payroll automates payroll processing, compliance, and tax filings. It ensures timely payouts while reducing errors, and it integrates well with accounting and HR systems you may already use.
Key Features:
Automated payroll processing
Tax filing (TDS, PF, ESIC)
Compliance reporting
Integration with accounting software
Best For:
Startups and enterprises seeking automated payroll solutions
Teams want error-free, compliant payroll management
Pros:
Fast and reliable payroll processing
Easy integration with other tools
Cons:
Limited HR modules beyond payroll
Advanced reporting features require higher plans
Pricing: Subscriptions start at ₹2,499
3. Leegality
Leegality offers paperless HR solutions, automating document signing and e-signatures. It streamlines workflows and ensures all documents are legally compliant and securely stored.
Key Features:
E-signatures and digital document management
HR document workflow automation
Compliance and audit trail
Integration with HRMS
Best For:
Businesses wanting secure, paperless HR documentation
Teams needing faster approvals and document turnaround
Pros:
Reduces paperwork and manual errors
Ensures legal compliance
Cons:
Limited to document management
Dependent on integrations for full HR automation
Pricing:
Basic Plan offers eSign at INR 25 per Aadhaar signatory and digital stamping at INR 45, with a minimum purchase of INR 100 for eSign credits.
4. Synergita
Synergita is an OKR and employee management platform that simplifies performance management. It helps businesses align individual and team goals with the company’s objectives, driving better results.
Key Features:
OKR (Objectives and Key Results) management
Continuous feedback and 360-degree performance reviews
Employee engagement and development tracking
Integration with other HRMS tools
AI-based sentiment analysis for real-time feedback
Best For:
Businesses that are seeking an employee performance management and OKR (Objectives and Key Results) system to enhance their HR management processes, especially for first-time users.
Companies that want to align individual and team goals with business objectives
Pros:
Easy integration with existing HRMS tools and other platforms
User-friendly interface and intuitive design
AI-powered insights for better employee feedback and engagement
Cons:
May require some time for large teams to fully adopt the system
Advanced reporting features might need higher-tier plans
Pricing: starts at ₹30/user/month (Billed Annually)
5. EngageWith (Springworks)
EngageWith is an employee engagement platform that enables companies to create a recognition-driven culture, boost productivity, and foster a sense of belonging among employees. It offers seamless integration and easy point redemption for enhanced team appreciation.
Key Features:
Rewards and recognition
Pulse surveys, eNPS, and anonymous feedback tools
360° feedback and suggestion box
Real-time engagement analytics and leaderboards
Integrations with Slack and MS Teams
Best For:
Companies seeking to improve employee engagement and productivity
Teams looking for an easy-to-implement recognition platform
Pros:
Fast setup (under 60 minutes) with priority support
Tailored solutions and customisable rewards
Data-driven insights to improve employee experience and engagement
Cons:
Limited to engagement and recognition, so it may require other tools for full HR management
Advanced features are available only in higher-tier plans
Pricing: $2/user/month (~₹166/user/month) (for up to 500 users).
Also Read: 10 Best HR Software in India For Your Growing Business
After exploring the different HR automation tools, it’s time to decide which approach is right for your business. Here's a decision guide to help you choose the best option based on your needs.
Choosing between an HRMS and dedicated tools depends on your business needs, size, and the complexity of your HR processes. Both options have their advantages, so it’s essential to align them with your specific objectives.
Here’s a quick guide to help you make the right decision.
Choose an HRMS If:
You need end-to-end HR process automation – HRMS integrates multiple HR functions (payroll, performance, compliance, etc.) into one unified system, automating your entire HR workflow.
You want centralised data management – It offers a single platform for managing all HR data, ensuring accuracy and consistency across functions.
You require scalability – HRMS is ideal for businesses looking to scale quickly, as it can handle increasing complexity while centralising data management.
You prefer a seamless user experience – With cross-functional automation, HRMS reduces data silos and provides a smooth experience for both HR teams and employees.
Dedicated Tools Help You When:
You need specialised features for specific HR functions – If you want to focus on one area (e.g., payroll, attendance, leave management), dedicated tools offer deeper functionality in that area.
You prefer a phased rollout – These tools allow you to start with one function (such as payroll automation) and add more features over time as your business grows.
You want flexibility in choosing the best tool for each HR need – Dedicated tools offer flexibility by allowing businesses to pick the right solution for specific HR processes, without the need for a one-size-fits-all approach.
You need cost-effective solutions for specific tasks – If your business has specific needs, using dedicated tools for individual functions can be more cost-effective than an all-in-one HRMS solution.
Checklist That Helps Businesses with The Final Decision
Use the following checklist to evaluate the key factors before making your choice:
India compliance: Ensure that the tool covers all relevant Indian labour laws and statutory requirements, such as PF, ESIC, and TDS.
Automation depth: Assess how well the tool automates processes and integrates with other HR functions.
Integrations: Check for integrations with other business tools like accounting software, attendance devices, or payroll systems.
Mobile support: Look for tools that offer mobile access for both employees and admins, enabling flexibility.
Admin effort: Consider how much effort will be required for setup and ongoing management. HRMS tools often require less manual intervention once set up.
Pricing transparency: Choose a tool that offers clear pricing without hidden charges or unnecessary add-ons.
Support SLAs: Evaluate the quality of customer support and whether the tool offers guaranteed response times and service availability.
Data export: Ensure that the tool allows you to export your HR data easily for reporting or compliance purposes.
Also Read: Document Automation for HR: Simplify HR Workflows & Improve Efficiency
With platforms like Craze, you can automate everything from payroll to compliance, all in one seamless medium. Craze offers the perfect HRMS solution that grows with your business.
With Craze, you have the flexibility to start small and scale your HR automation as your needs grow.
Start with Core HR + Any One Module: Begin with the essentials, Core HR and a single module that fits your current needs, whether it’s payroll, attendance, or performance.
Add More Modules Anytime: Easily expand your HR automation by adding more modules like payroll, leave, attendance, shifts, engagement, and performance as your business evolves, without the hassle of re-uploading data.
Real-Time Sync Across All Modules: All your HR data—payroll, attendance, leave, performance, and documents—syncs in real time, ensuring seamless workflows and accurate information.
Pricing starts at ₹60 per employee per month. Enjoy full access to features with no hidden fees or add-ons.
HR automation is no longer optional—it’s essential for startups and SMEs in India that want to scale efficiently, stay compliant, and create better employee experiences. Manual HR operations, whether it’s managing attendance, payroll, or compliance, can drain time, cause errors, and slow business growth. By automating these repetitive tasks, companies can shift their HR focus from administration to strategy.
The right HR automation software brings everything together—streamlined workflows, accurate compliance, real-time insights, and seamless collaboration between HR, finance, and IT teams. Choosing between a full HRMS suite and dedicated tools depends on your business needs: HRMS platforms provide an end-to-end solution for unified data and automation, while dedicated tools deliver deeper functionality in specific areas like payroll or attendance.
Whichever approach you choose, ensure your software is India-ready with built-in statutory compliance and flexible enough to grow with your business.
In a competitive market, automating HR is more than just a time-saving measure. It’s about building a smarter, more agile, and future-ready workplace.
1. What are the essential features of HR automation software?
Ans: The essential features of HR automation tools are payroll management, attendance and leave management, employee records management, and performance management tools. These features help streamline HR processes, reduce manual work, and ensure compliance with labour laws.
2. Can I start with dedicated tools and add an HRMS later?
Ans: Yes, you can start with dedicated HR tools such as payroll or attendance management and later integrate an HRMS as your business grows. Many dedicated tools are designed to work seamlessly with HRMS platforms, allowing you to expand your HR automation capabilities without the need to re-upload data or disrupt existing workflows.
3. How do I estimate the ROI of HR automation?
Ans: To estimate the ROI of HR automation, you should consider the time saved by automating manual tasks, the reduction in errors and compliance penalties, and the efficiency gains from streamlined processes.
4. What is HR automation software vs HRMS?
Ans: HR automation software focuses on automating specific HR tasks, such as payroll, attendance, or leave management. These tools are often standalone and target individual HR functions. On the other hand, an HRMS is an integrated platform that encompasses a wide range of HR functions, including payroll, recruitment, performance management, and compliance, providing a comprehensive, all-in-one solution for managing human resources.
Looking to optimise other aspects of your HR operations? Check out these top HRMS tools and software for your use case:
