How Can HR Software Help Small Businesses

Introduction: Small Businesses, Big Potential with HR Tech 

Singapore’s startup and SME scene is thriving, with more than 4,500 active startups in 2025. However, many small businesses still handle HR tasks by hand — relying on spreadsheets or even paper records. 

This approach might work when you’re just starting out, but as your company expands, doing HR tasks by hand takes too long, leads to mistakes, and might not follow MOM or CPF rules. 

Here’s where HR software (also called HRMS – Human Resource Management System) makes a big difference. It makes HR jobs easier, handles payroll , and helps companies stick to Singapore’s work and data privacy laws, all while cutting down on time and expenses. 

Why Small Companies Need HR Software in 2025 

As teams get bigger, HR jobs like payroll, tracking time off, and managing expense claims can become too much for business owners to handle. Using HR software helps you: 

• Cut Down on Human Mistakes in payroll and recordkeeping 

• Make Routine HR Jobs Automatic, like tracking attendance and submitting CPF 

• Follow the Rules set by MOM, CPF, IRAS, and PDPA 

• Cut Down on Time and Expenses letting you put more effort into growing your business 

Handy Tip: Many HR software companies in Singapore such as Info-Tech provide flexible HR systems — you can start with the basics and add more as your company grows. 

5 Essential HR Software Features for Every Small Business 

Let’s look at the must-have parts small businesses should think about when picking HR software. 

1. Time & Attendance Tracking 

Keeping track of attendance by hand using punch cards or spreadsheets often results in mistakes and even “buddy punching.” 

An HRMS time attendance system offers these benefits: 

• Staff clock in through biometric devices or smartphone apps 

• Records update on HR dashboards 

• The system captures work hours, tardiness, and extra time 

• Attendance data flows straight into payroll 

Extra tip: Set up custom work shifts, lunch breaks, and public holidays using MOM’s 2025 calendar to track time. 

2. Payroll Management System

Mistakes in payroll can hurt staff morale and even cause problems with MOM compliance. Small companies need a system that guarantees accuracy and timely payment. 

HRMS payroll software automates these tasks: 

• Figuring out wages (including extra hours & perks) 

• CPF SDL, and IRAS online submissions 

• Creating pay stubs (MOM-approved detailed pay slips) 

• Linking with attendance & time off data 

Following the Rules: Payroll programs connected to the IRAS Auto-Inclusion Scheme (AIS) make sure IR8A, IR8S, and IR21 forms are sent in on time. 

3. Time Off Management System 

Keeping track of time off by hand can easily cause arguments and pay mistakes. 

HR programs make time off tracking automatic by: 

• Letting staff ask for time off online 

• Giving employers the chance to say yes or no right away 

• Keeping leave totals up-to-date on its own 

• Putting leave info straight into pay systems 

Tip: Now that MOM’s Flexible Work Arrangement (FWA) will be a must to think about from December 2024 online leave tracking helps you follow the rules more. 

4. Claims Management System

The old way of dealing with claims — gathering paper receipts and getting approvals by hand — often causes holdups and mistakes. 

With HRMS claims management software: 

• Employees upload pictures of receipts using the app 

• The system sorts claims by itself and sends them to be approved 

• Employers approve claims with just one click 

• Approved claims go straight into pay systems to give money back 

Example: Info-Tech’s HRMS lets employees claim expenses right away on their phones cutting down processing time by up to 70%. 

5. Performance Management System 

In small companies, each employee matters — and correct performance tracking leads to fair reviews and promotions. 

HRMS performance management systems let you: 

• Do reviews using custom templates 

• Set and track KPIs and OKRs 

• Get 360° feedback from employers and coworkers 

• Connect performance scores to pay or bonuses 

Perk: Switching from paper reviews to digital ones saves time and boosts clarity. 

How to Pick the Right HR Software for Your Company 

When you pick HRMS Software in Singapore, think about these things: 

 Helpful Hint: Info-Tech’s HRMS gives you options — start with time tracking or payroll and add leave or performance tools as your business grows. 

Best HR Software for Small Businesses in Singapore 

Are you still handling HR tasks by hand or with Excel? Now’s the time to update your approach. Info-Tech’s HRMS Software helps small companies automate HR tasks efficiently and at a reasonable cost. 

Key Features 

• Cloud-based platform that follows PDPA rules 

• Combined tools for Payroll Software, Leave Management Software, Time Attendance Software, Claims Management Software, and  Performance Management Software.  

• Ready for IRAS, CPF, and MOM 

• Works on computers and phones 

• Qualifies for SMEs Go Digital Productivity Grants 

Try a Free Demo Now: Ring +65 6297 3398 or write to sales@info-tech.com.sg to see how our HR software can make your business run smoother. 

Conclusion: 

Small businesses in 2025 can’t avoid using HR software — it’s a must. 

A good HRMS helps you: 

• Cut down HR work and mistakes 

• Get payroll right 

• Follow rules from MOM, CPF, and IRAS 

• Let employees handle their own info 

• Grow your business — not mess with spreadsheets 

Changing HR to digital sets the stage to grow in Singapore’s tough SME world. 

Frequently Asked Questions: