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In today’s dynamic and agile business environment, effective human resource management software is very important for the success of any organization. Not only this, but many HR solutions available in the market can provide your organization with excellent human resource management capability. But this comes with a cost, i.e., many organizations cannot purchase this softwares because of financial and capability constraints. This brings us to the HR software in India; some are also open-source, which you can customize.
Integrating these core HR functions on one platform empowers HR professionals to time from routine tasks, enhance operational efficiency, and gain valuable insights through data analytics. Before listing the 10 best free HR Software in India that are also open-source, let us understand their differences.
Difference Between Free and Open Source Software
Even though free software and open-source software have different meanings, people sometimes use them interchangeably.
Free software means software that respects the user’s freedom and community. Here, freedom means that the users are given the freedom to copy, run, distribute, change, and improve the solution. Free software is a platform that is available at no cost, but it is still copyrighted and cannot be modified or re-distributed for money. Freeware is often limited in functionality, with a more capable version available for purchase.
In comparison, open-source softwares can be modified as per user requirements and needs without burdening the licensing violation. The platform’s source code is available publicly to the community, allowing the users to modify the source code and distribute it.
In conclusion, it was developed with the goal of promoting freedom and complete control for users. Open-source software has been developed to encourage high-quality platforms through community efforts. While source codes are always available for open-source software, they are not always available for free.
10 Best Free HR Software In India For Small Businesses
1. factoHR
factoHR is an all-in-one complete HR software designed to streamline all the core HR functions along with some other specific tasks, ensuring maximum efficiency in HR processes. factoHR has powerful features and a user-friendly interface, which helps increase any organization’s efficiency.
The software concentrates on a one-stop solution, starting from recruiting, attendance, payroll, performance management, etc. The solution provides an interactive dashboard which provides great and valuable insights into analytics, resulting in making informed decisions by the HR professionals.
The system’s cloud-based nature allows HR professionals to access employee data and tools with real-time updates. By automating routine HR tasks, organizations can focus on critical business objectives.
Features
| The homepage has interactive functions and is user-centered. | Cloud-based HRMS focusing on mobile-first platform. |
| Comes with an Employee self-service portal. | Analytics for workforce strength, diversity, demographics, qualifications, etc. |
| Payroll comparisons can be carried out monthly & yearly on gross salaries, deductions, etc. | Attrition reports can be retrieved (joined & resigned employees). |
| Absenteeism patterns and reports can be generated. | Ad-hoc report builder by selecting various categories. |
| Employee classification for managing data, asset tracking, data revisions, audit trail, etc. | Self on-boarding along with invitation link, document management & workflow. |
| Creating multi-level approval workflows & automate lower-level repetitive tasks. | Multi-level approval workflow to ensure data is checked by the supervisors. |
| Generate letters & management (zero paperwork). | Employee communication like chatbot & along with sharing documents, policies, and important events for seamless integration. |
| Full & final settlement & frictionless offboarding. | Real-time feedback survey forms for participation. |
Benefits
- factoHR provides an enhanced high-level of encrypted security, giving granular-level permission to audit trials and protecting and safe the data.
- It offers high scalability and flexibility, making your organization future-ready with easily accessible core HR processes.
- Quick implementation of wizard-driven configuration makes it easier for employees to access the weekly information.
- Built-in integration with internal and external modules makes a highly connected automated software for better employee productivity.
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2. OrangeHRM
OrangeHRM might be the longest-running free human resource management software on the Internet. Although it is available for professionals and enterprises in SAAS versions, the free version is quite popular. The entry-level software has been feature-packed on the market. The system’s features are highly praised, but its support and maintenance services are average.
OrangeHRM Features
- Mobile App
- Employee management
- PTO/Leave management
- Performance and Time tracking
3. Horilla
Horilla is an all-in-one human resource management platform. It is open-source HR software packed with valuable features that will make your life as an HR professional easier. Horilla is a comprehensive solution that includes customization and ad-hoc report filtering. It streamlines processes, talent management, and data analytics and enhances productivity.
Features of Horilla
- Employee engagement
- Recruiting and onboarding
- Asset management
- Helpdesk
4. MintHCM
MintHCM is a state-of-the-art Human Capital Management (HCM) solution designed to revolutionize the way organizations manage their workforce. With a user-friendly interface and a modern approach, MintHCM offers a complete set of tools to streamline core HR processes, talent management, employee engagement, and learning and development.
MintHCM Features
- Productivity and efficiency
- Data centralization
- Employee satisfaction and engagement
- Talent management
5. Open HRMS
Open HRMS is free and open-source platform that performs core HR functions well. It is specially designed for small businesses seeking an alternative best open-source HRMS software for managing their HR tasks. Open HRMS offers convenient business solutions not only for small businesses but also for medium and large business organizations. You can also customize the system according to your business requirements. The platform provides features like a dynamic employee recruitment system, employee database, strategic workflow, time and attendance tracking, streamlined payroll operations, and performance analysis.
Open HRMS Features
- Affordable business solution
- Dynamic employee recruitment system
- Centralized employee database
- Automation of operations
- Strategic workflow
- Performance analysis
6. Frappe HR
Frappe HR is a 100% top free HRMS software in India with features like seamless UX and a sophisticated UI. It was introduced to simplify an employer’s work and allow application development. One feature that makes Frappe HR is best free HRIS is the user-friendly UI-UX that provides out-of-the-box customization.
Best Features of Frappe HR
- 100% open source
- Affordable
- Easy Integrations
- No code-low code solution
7. Odoo
Due to Odoo’s extensive functionality, it can be particularly suitable for companies looking for a flexible solution across numerous departments. When it comes to using plugins, the platform offers many choices. Odoo is an open-source HR management software designed to change how organizations manage their human resources. It has interacting features like employee records, payroll management, performance management, recruitment, etc., to help HR functions and processes run smoothly, saving efforts and time. It is open-source and helps your organization customize and use it for free.
Odoo Features
- Cloud-based
- Employee evaluation
- Leave management
- Expense management
- Integrated documents
8. Sentrifugo
Designed for organizations with up to 1,000 employees, Sentrifugo is a relatively newcomer in the best free HRMS in India that helps small and medium-scale organizations manage employee data, recruitment, performance, and more. It has a configurable interface and a self-service portal, making it easy for employees to manage their information, leave requests, performance goals, etc. Sentrifugo is available in cloud-based and on-premise and available in multiple languages. It is affordable, scalable module that makes HR tasks more accessible and efficient.
Features provided by Sentrifugo
- Talent acquisition
- Analytics
- Asset management
9. IceHrm
IceHrm is available in three forms, each providing source code access. This solution is free for up to 5 users. Additional users require a paid subscription. IceHrm is an open-source, cloud-based platform for thousands of users worldwide. This platform is easy to use and customizable, making it more user-friendly. This ease of use undoubtedly increases productivity and improves HR processes. Its seamless integration with third-party applications like accounting and payroll makes it more convenient for HR professionals. It comes with both paid and free versions, with more features.
IceHrm Features
- Employee information storage
- Payroll processing
- Custom forms
- Performance reviews
10. iHRMS
iHRMS, or IntraHealth International, is a powerful, open-source software specially designed for the health workforce. It helps governments, health organizations, and other groups better manage their staff, provide better health services, and get better health results. iHRIS works in low-resource environments with offline data collection, SMS data entry, and synchronization, even without internet access. One of this software’s best features is that it provides customized modules to use and change according to the needs of the business. Lastly, iHRMS is a good choice for any business as it is free and open-source, making it more favorable when the company cuts costs or has a tight budget.
Features of iHRMS
- Payroll
- Recruitment management
- Expense reporting
- Taxation management
Significance of Free HR Management Software
HR management software has become an important tool for all organizations in any industry due to its numerous benefits. Some of the reasons for having best free HRMS Software in India are mentioned below:
1. Efficiency and Automation
Automating specific basic HR tasks, such as attendance, payroll, benefits management, leave tracking, etc, helps HR make other important strategic decisions for better growth and efficiency.
2. Improved Data Management
The HR management system provides a centralized database for managing and storing employee data. This guarantees data accuracy, consistency, and easy accessibility.
3. Enhanced Employee experience
HRMS can improve the employee experience and benefits management by providing self-service portals for easy access to information and streamlined request submissions.
4. Data-driven decision
The HR management system provides advanced analytics for employee performance, turnover rates, and other key metrics, which enables HR teams to make informed strategic decisions.
5. Efficiency in decision-making
HR management platform automates many tasks, which is quite time-saving. This enables the HR teams to make more strategic decisions for the company.
6. Scalability and Flexibility
The HR system ensures that there are enough opportunities for new expansions and advancements, which in turn saves time and energy.
Benefits of Using Free HR Software
HR management software provides various benefits like automated tax regulation compliance, data management, cost reduction, enhanced employee experience, etc. Below are some of the benefits of having a Free HRMS software in India:
1. Compliance with Indian Labor Laws
HRMS helps organizations stay current on Indian labor laws and regulations, such as the Minimum Wages Act, the Employees’ State Insurance Act, the Provident Fund Act, etc.
2. Enhanced Communication
One key benefit of having a centralized HR system is that it provides a platform for HR to convey important updates, policies, and announcements to the employees.
3. Centralized data management
HR management solution stores employees’ data in one place, giving HR professionals access to it with just one click. Filtered ad-hoc reports make HR work much easier.
4. Enhanced productivity
Simplifying and automating tedious tasks can increase the organization’s productivity and efficiency.
5. Cost savings
HRIS can help reduce costs by automating tasks, minimizing errors, and boosting efficiency.
6. Enhanced employee experience
Human Resource software helps employees by providing them with ESS portals for managing their own tasks, such as leave management, request time off, access pay slips, and more.
These benefits collectively provide effectiveness in the ongoing operations of HR, organizational growth, and improved employee experience.
How to Choose the Free HR Software?
This step involves a thorough understanding of various factors affecting the business. Below are some of the important factors in choosing the right Free HRMS Software in India:
1. Business Needs and Goals
To select the free HR software for your organization in India, begin by evaluating your business requirements. Understanding the company’s mission, vision, and goals will help you identify the most suitable platform for your needs.
2. Features and Functionality
Make sure the program has all the necessary functions, such as payroll processing, timesheet, attendance tracking, performance management, employee data management, etc.
3. Integration capabilities
Ensure the HR automated solution seamlessly integrates with third-party platforms like payroll and accounting systems or customer relationship management (CRM) tools.
4. User Experience and Interface
Evaluate the software’s user interface and its ease of use for HR specialists and employees.
5. Cost and implementation
Before selecting any solution, compare the pricing models such as on-premise, cloud-based, and subscription-based. For implementation, compare customization, training, and data migration.
6. Vendor support
Examine the quality of customer service offered, taking into account response times and the accessibility of various channels (such as chat, email, and phone).
7. Security and Data Privacy
Ensure the platform has strong security features to safeguard private employee information.
Conclusion
When choosing best free HR management software in India, organizations must make a critical choice, especially in the ever-changing business environment. The correct software may revolutionize your HR department and, consequently, your entire business, from strategic personnel management to automating labor-intensive tasks.
As the organization scales and expands, investing in the right HRMS enhances operational efficiency and positions the company for future success.
Frequently Asked Questions
What Is the Key Difference Between Free and Open-Source HR Management Software?
While both are free, the open-source solution allows you to modify and distribute the source code, providing greater flexibility and control. The free solution may have limitations or restrictions on its use and modification.
How Difficult Is It to Implement Free HR Management Software?
The implementation process can vary depending on the system’s complexity and your organization’s specific needs. Some platforms may offer guided setup or templates to simplify the process.
Which Free Software Offers the Best Time and Attendance Tracking Features?
While many free options provide basic time and attendance tracking, consider software like factoHR or Open HRMS for more advanced features like geofencing, overtime calculations, and leave management.
Can I Customize Free and Open-Source HRMS to Match My Organization’s Processes and Workflows?
The level of customization available varies depending on the system. Open-source software often offers more flexibility for customization, but even some free platforms may have options for tailoring features.
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