10 Best HR Automation Software To Boost Your People Operations In 2026

Scaling a small business in India in 2026 is more exciting and more challenging than ever before. With the rise of remote work, hybrid workforce models, and digital-first ecosystems, managing employees effectively has become a top priority for growing startups and SMEs. What once worked with a handful of employees, Excel sheets, manual payroll runs, and paper attendance registers, no longer scales when you’re hiring across states and industries.

Small and mid-sized businesses today face three key HR challenges:

• Manual processes that consume time and are prone to errors.
• Compliance complexity, as ever-changing labor laws and tax regulations in India keep HR teams on their toes.
• Scalable workforce management, where businesses need to manage talent acquisition, payroll, performance, and benefits while keeping employee experience front and center.

The solution? HR automation tools designed for Indian businesses. These help reduce administrative overhead, save costs, ensure compliance, and create consistent yet customisable HR workflows. In this blog, we’ll explore why HR automation matters for Indian SMEs in 2026, the top software you should explore, and how pairing automation with customised employee benefits from Onsurity can give your business a growth edge.

Also read: Top 15 HR Challenges with Solutions

Why HR Automation is Crucial for Small Businesses in 2026?

India’s small business landscape is transforming. SMEs contribute nearly 30% of India’s GDP and employ more than 110 million people (MSME Ministry Report, 2024). With startups and local enterprises scaling fast, HR no longer remains a back-office task; it determines productivity, retention, and compliance health.

Key Drivers for HR Automation in 2026

• Remote and Hybrid Teams – Post-pandemic trends continue with distributed teams across multiple cities. Manual attendance, leave tracking, and payroll don’t work when your team is spread over India’s metros and tier-2 cities.

• Changing Compliance Landscape – With the Labour Codes (wage, social security, industrial relations, and occupational safety laws) being implemented in phases, manual compliance is becoming increasingly risky. Penalties for delay or mismanagement can run high.

• Need for Scalable Processes – Growing businesses cannot afford HR bottlenecks. Automating payroll, onboarding, and employee lifecycle management saves time and unlocks HR’s role as a strategic growth partner.

Business Benefits of HR Automation

• Reduced manual workload – HR staff can shift focus from repetitive tasks to strategy.
• Improved employee experience – Self-service portals, easy access to pay slips, and automated leave tracking can make trivial tasks easy.
• Scalability with growth – Automated HR processes can scale as headcount increases from 20 to 200 or more.
• Customisation for unique needs – Every SME has a different culture and growth model; automation allows for tailor-made workflows.

Transitioning to digital HR is not optional anymore; it’s a requirement to remain agile and competitive. Let’s explore the top 10 HR automation platforms tailored for Indian businesses in 2026.

Quick read: 9 Major Roles and Functions of HR Manager

Top 10 HR Automation Software for Indian SMEs & Startups

1. Keka: Best for Payroll Automation & Compliance

Hyderabad-based Keka has become one of India’s most widely adopted HRMS solutions, recognised for its robust payroll automation and compliance management capabilities. Additionally, the platform provides scalable, employee-friendly, and data-driven insights, making it a comprehensive HR suite.

Key Features

• Payroll and compliance
• Attendance management
• Leave management
• Performance management
• Recruitment and onboarding
• Employee self-service portal

Why It Works for SMEs?

• Keka is built for Indian businesses. From compliance to payroll, everything is aligned with Indian processes.
• It has the most user-centric UX/UI design among other HR tools. The HR dashboards, reports, and workflows are clean, modern.
• It is an end-to-end platform that covers the entire employee lifecycle, from recruitment to retirement.

Pricing: Starts at around Rs. 9,999/month for 100 employees, scale as you grow.

2. greytHR: Streamlined HR Processes Tailored to India

Like Keka, greytHR is also an Indian HRMS that is known best for its strong payroll and compliance features. Many small and growing businesses prefer the platform due to its affordability, user-friendliness, and focus on Indian labour laws.

Key Features

• Payroll management
• Compliance (TDS, PF, ESI calculations and deductions, and professional tax computation)
• Self-service portal for employees
• Leave and attendance management

Why It Works for SMEs?

• Strong focus on Indian statutory compliance and accuracy in salary processing.
• The platform offers the most affordable pricing structure for small teams.
• It is simple to set up and can be deployed quickly.

Pricing: Starts at Rs. 3,495/month for 50 employees.

Recommended read: Top 15 Employee Retention Strategies

3. Zoho People: Budget-Friendly & Customisable

From the trusted Zoho suite, Zoho People is a cloud-based HR platform most suitable for Indian startups, SMEs, and remote teams due to its flexibility, affordability, and integration with other Zoho tools.

Key Features

• Centralised employee database management
• Highly intuitive time tracking and attendance system
• Easy access and integration with the complete Zoho stack

Why It Works for SMEs?

• Highly scalable and affordable for Indian businesses
• Easy automation and compliance support for payroll

Pricing: Plans start at Rs. 50 per employee per month.

4. Darwinbox – Scalable Enterprise-Grade Platform

A modern HR platform used by enterprises, but with pricing that makes it accessible to ambitious SMEs.

Key Features

• Recruitment to retirement lifecycle automation.
• AI-powered insights on performance and attrition.
• Powerful mobile-first experience.

Why It Works for SMEs

• Suitable for rapidly scaling SMEs with pan-India offices.
• Bridges the gap between startup agility and enterprise features.

Pricing: Custom quote based on team size.

Suggested read: Human Resource Issues in the Workplace

5. Zimyo – Focused on Employee Experience

Zimyo positions itself as a new-age HR software for enhancing employee engagement.

Key Features

• Payroll, attendance, and compliance coverage.
• Employee surveys and rewards programs.
• Benefits and perks integration.

Why It Works for SMEs

• Strong value for employee engagement.
• Combines HR automation with culture-building.

Pricing: Starts at Rs. 60 per employee per month.

6. Qandle – Flexible HRMS with Strong Customisation

A modern HRMS solution offering complete flexibility with modular tools.

Key Features

• Recruitment, payroll, performance, and analytics.
• Employee lifecycle management with customisation.

Why It Works for SMEs

• Flexible approach makes it great for diverse industries.
• Custom workflows.

Pricing: From Rs. 2450/month for small teams.

7. sumHR – Simplified HR Platform for SMEs

A startup-friendly solution designed for SMBs.

Key Features

• Payroll, leaves, and performance reviews.
• Easy-to-use dashboard with automation built in.

Why It Works for SMEs

• Designed for smaller businesses with simple HR needs.

Pricing: From Rs. 59 per employee per month.

Also read: Corporate Wellness Programs Trends HR Should Know

8. factoHR – Strong Payroll + Compliance Focus

factoHR is popular for companies prioritising payroll and compliance over other HR features.

Key Features

• Payroll accuracy with compliance focus.
• Mobile-enabled ESS (employee self-service).
• Performance management.

Why It Works for SMEs

• Cost-effective solution for SMEs needing payroll-first automation.

Pricing: From Rs. 3999/month for up to 50 employees.

9. PeopleStrong – AI-Driven, Scalable HR

A leading AI-powered HR platform, trusted by growth-focused firms.

Key Features

• Talent acquisition, payroll, learning, and engagement.
• AI-driven insights on retention and workforce planning.

Why It Works for SMEs

• Great for scaling businesses looking at advanced HR analytics.

Pricing: Custom quote.

10. BambooHR – Global Tool with Indian Presence

A US-based HR solution adopted by Indian SMEs for its employee experience features.

Key Features

• Employee database, performance reviews, reporting.
• Strong employee engagement tools.

Why It Works for SMEs

• Great for companies with global ambitions or clients.
• Comes at a higher cost but with premium usability.

Pricing: Starts at $6 per employee/month.

Quick read: Flexible Working Hours: Benefits, Challenges & Best Practices for Businesses

How to Choose the Right HR Automation Tool?

The Indian HR tech market is crowded, and it can be overwhelming for a small business owner to pick the right platform. The truth is, there’s no single “best” software. The right choice depends on your company’s current size, future ambitions, and how much flexibility you need. Here are some factors to weigh carefully before making a decision:

1. Size and Growth Stage

If you’re running a lean team of under 50 employees, you don’t need a complex HRMS that eats into your budget. Tools like Zoho People or sumHR offer the essentials—attendance, payroll, and basic performance tracking—without being overwhelming.

For a growing business with 50–200 employees, solutions like Keka and greytHR strike a good balance between affordability and advanced features, specially around compliance and payroll automation. If your organisation is scaling rapidly or planning to move upmarket, platforms such as Darwinbox or PeopleStrong are better suited. They’re designed for enterprise-level complexity but can adapt to smaller setups and expand as you grow.

2. Integration Needs

Think beyond HR. Your HR automation tool should be able to connect with payroll, attendance systems, accounting software, and even employee benefits providers. This ensures data flows seamlessly without constant manual uploads. For example, if your finance team uses Tally or Zoho Books, choosing an HRMS that integrates with these tools will save hours of reconciliation.

3. Customisation Requirements

Every business is unique. Some companies require local workflows—like Indian tax compliance or regional leave policies—while others need global templates to manage distributed teams. Look for tools that let you customise approval flows, reports, and policies without needing constant tech support.

4. Budget & Scalability

Budget is often the deal-breaker for SMEs. Entry-level tools are cheaper and easier to adopt, but they may not scale as your workforce doubles or triples. On the other hand, investing early in a scalable platform prevents the headache of migrating data later. It’s worth asking vendors about pricing models—do they charge per employee, per module, or offer bundled packages?

5. Pro Tip: Test Before You Commit

Most HR software providers offer free trials or pilot programs. Take advantage of them. A trial run allows you to test usability, check integration with existing systems, and gather feedback from employees. This reduces the risk of investing in software that looks great on paper but falls short in practice.

Also read: 10 Ways to Improve Work-Life Balance for Your Employees

Beyond HR Automation: Customised Employee Benefits with Onsurity

While HR software can streamline tasks like payroll, attendance, and compliance, employee well-being and benefits are equally critical. For small businesses in India, managing group health insurance or preventive wellness plans has traditionally been difficult due to high costs and rigid models.

This is where Onsurity steps in with a subscription-based, digital-first benefits platform.

Onsurity Benefits for SMEs and Startups

• Health Insurance Access: Group health insurance tailored for teams as small as 3-5.
• Wellness Benefits: Doctor teleconsultations, discounted lab tests, and mental health support.
• Preventive Health Checkups: Proactively improve employee health outcomes.
• Flexibility & Scalability: Add/remove members easily as your startup grows.
• Employee-First, Affordable Plans: Designed for affordability without compromising coverage.

By integrating HR automation + employee wellness, SMEs can build a sustainable workforce strategy—automating admin, while keeping employees happy and healthy.

Conclusion

In 2026, automation is no longer optional for small businesses in India. HR automation platforms like Keka, greytHR, and Zoho People help SMEs scale efficiently, comply with regulations, and improve employee experience. But HR digitisation must go hand in hand with employee well-being. Platforms like Onsurity ensure your teams feel valued with affordable health and wellness benefits.

Automation + benefits = sustainable growth. If you’re an SME looking to scale efficiently, it’s time to explore HR automation tools and discover how Onsurity can give you the competitive edge.

FAQs: