The most important HR decision SME business owners should make in 2023!

What is the priority for SME business owners in 2023?

In our recent survey, most of them put business development and financial management at the top. Ahead of Human resource management.

But when we probed further, business owners revealed, ‘as we grow we realize the competition is tough, and we need to upgrade our team. New talent is required, while experienced employees must be retained. So HR is vital to take care of our top concerns.’

Progressive SMEs know when the organisation is running smoothly, they can take care of business challenges better. They understand the importance of automation tools for running their small business. In fact, they employ these in their production processes and financial management.

That’s why in 2022: the question on their mind was: whether they should invest in modernizing the human resource management system? Is it the right time to implement HR software for small business like theirs?

Last year, especially with remote workforce and hybrid working conditions, they invited HRMS software companies and considered using payroll processing systems, and attendance management software for their organisations.

Our conclusion is, in 2023: The HR tech landscape is changing rapidly. Artificial Intelligence (AI), Machine Learning (ML) and Data Analytics are getting into mainstream now. So, shifting to a cloud-based HR platform is a decision that must be taken sooner rather than later.

Why SME Business must shift to HR automation in 2023

Implementation of HRMS automation helps in creating a good HR foundation for your organisation.

Implementation of HRMS software needs mapping of HR scenarios in your organisation. Regular scenarios and also what might be needed in the near future. The compliances are also considered. Good HRMS tools also do a detailed mapping of HR workflows.

Making these decisions helps create a better strategy for the business, and a solid HR foundation.

Once the attendance and leave policies, late-come, early-go policies and various salary and increments policies are in place, HR is free from day-to-day conflicts. Smart business owners go one step further and define employee benefits, employee engagement, as well as employee satisfaction strategies.

These are important factors in employee retention.

Now, don’t get worried that this will all be expensive. Because we are talking about showering benefits. Even if we offer a small amount as a reward to performing employees, it makes a difference. The important thing is to have these policies in place.

A close study of all the manual tasks, filling of forms, and transfer of HR data from one spreadsheet to another tells us how much time is spent on non-productive activities.

HRMS, the Human resource software eliminates many of these tasks. Or, gets this data from the employee, who provides these through their employee dashboards. The HRMS system also takes care of capturing data, analysis, and well-formatted reporting.

This allows HR managers to plan for the organisation’s future policies, to plan better recruitment, and to organize training and development events in the company.

HR software helps to create a culture of discipline and accountability in the workplace. It also ensures that everyone is following the same procedures and policies. This reduces the chances of errors and misunderstandings, a recurring issue in small and growing businesses. HR automation makes sure that employees are being treated fairly and consistently across the organisation, which is essential for a successful professional business.

It helps in defining the roles and responsibilities of employees, so they know what is expected of them for their respective jobs.

Overall, an HRMS solution guarantees consistent practices throughout the organisation and creates a better work culture.

You will realise the true value of your human resources managers when you implement a good HRMS solution in your organisation.

With HRMS, even a small HR team can handle everything!

Small businesses are low on HR bandwidth, and that’s why HR automation is crucial to cope with business growth. Responsibilities related to hiring, training, payroll as well as administration lie with human resource managers. It creates work overload and frustration, which can be solved by HRMS software.

HRMS software handles many repetitive tasks, while giving a good employee experience. It also produces real time reports which save time and effort for HR managers.

  • Digitalization with HR software eliminates paperwork and filing of forms
  • All HR documents are stored in the database, so document-driven processes are completed in no time.
  • One-click payroll generation makes the HR team’s job easy.
  • HRMS software like OpportuneHR provides portal tools for employees, which provide access to user-friendly dashboards. So employees don’t come to HR for minor queries.
  • Attendance, leave management and approvals are all done through the dashboards. That saves time and effort for employees, HR and the business owner.

HR automation frees business owners from HR and admin issues, and they can focus on core business.

When a business grows, many HR issues crop up in organisations. Work pressure goes up, new recruits and old employees need to work together in harmony. With company success, the expectations of employees go up. It’s difficult for any junior HR manager to tackle these issues on his own. That’s why HR and admin issues keep coming to the business owners’ table.

That’s one of the biggest headaches for SME business owners.

Modern HRMS software like OpportuneHR has core HR features which are designed with the best HR practices as a foundation. Also, the latest compliances are addressed in various processes of automation.

The employees’ dashboards, customer support, and our SME helpline solve many of these issues.

Senior managers and business owners can give HR-related approvals on the go through a mobile app. It saves a lot of energy, as minor issues don’t become bottlenecks.

So you can focus on business development and other issues which are vital for business growth and success.


In a nutshell, HR automation in 2023 will be the best decision for SMEs. HR automation will save their time and increase overall business productivity. It will smoothen the recruitment, retention and employee engagement activities. Creating the best possible employee experience in your given budget.

With OpportuneHR, the HR software created specially for SME businesses, you can streamline HR processes, improve efficiency, and get peace of mind.

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