Research states that the Indian Payroll Market is estimated to reach USD 2.38 billion by 2029 from USD 1.6 billion in 2024. It showcases the rising demand and implementation of smart PMS software in the Indian market. Similarly, the Indian market share of smart and online HR management software in 2023 was recorded at USD 344.45 million. 


This showcases the rapid adoption of smart technology and software and reducing dependence on manual employee performance management processes. The smart online PMS tool not only shifts manual work to digital platforms but enhances seamless evaluation process with transparency. 

Traditional Performance Tracking: Limitations and Challenges 

Did you know that businesses have lost profits, productivity, and success due to the loss of human assets, which is caused by a poor performance evaluation process? 

Without smart PMS software the employee development process gets adversely hampered. The communication gap between teams, subordinates, and concerned individuals draw a line of poor performance record, leaving no chance for employees to showcase their work done.

On paper, the performance measurements do not provide the real-time feedback to employees that leads to employee dissatisfaction. During the monthly, quarterly, mid-yearly, or annual performance evaluation, the feedback must be given transparently and on every project, which often is lacking in the traditional/ manual performance evaluation. Similarly, daily documentation on paper promotes adulteration in the actual work, making it more challenging to get accurate details on employee performance. 

Smart HR Managed Software Revolutionize Performance Tracking

The best HRMS payroll software for SMEs help companies track employee performance seamlessly, giving the best returns in terms of:

Continuous and Real-Time Monitoring

To give a better understanding of this factor, Kasturi HR, an HRMS software, provides a “Timesheet” feature, allowing employees to update their daily work to the portal. It can easily be accessed by reporting managers, team leaders, and admins. Thus, managers and HR personnel can make evaluations anytime, reducing the need for lengthy evaluation processes. 

Centralized Data and Transparency

The attendance management system software provides an easy navigation from where employees, managers, admins, and HR personnel where they can find relevant details, according to their domains, respectively. It increases communication and reduces HR intervention and their dependency. 

Instant Feedback and Collaboration

Once the performance evaluation software is integrated, feedback and communication becomes transparent, seamless, easy, and hasslefree. Employees, admins, reporting managers, team leaders, and concerned authorities can track status of specific projects and provide relevant feedback. 

Key Benefits of Using PMS Software

The mentioned points showcase the importance of having an efficient and smart online HR management system software:

Enhanced Employee Growth and Development

The various departments of a company can shift the task updates from paper to the software. From the marketing department, IT team, and sales team to managerial and C-level executives, every team can seek follow-ups on tasks and employees. Thus, they can effectively manage employee growth and development programs by analyzing their performance. 

Increased Engagement and Motivation

Employees with experience of manual operations understand the ineffectiveness and chaos that it causes to the overall productivity. For instance, time-intensive HR processes, limited insights on employee performance, no real-time data on projects, chaotic workspace, and others adversely impact employee engagement and motivation. 

Data-Driven Insights for Managers

Similarly, using the best HRMS payroll software for SMEs, managers get data-driven insights on ongoing projects, employee performance, and accordingly form the strategies for better outcomes and productivity.  

Reduced Bias and Greater Objectivity

Lastly, using smart ways through HRMS integration reduces biases towards performance tracking and other factors that impact employee motivation and engagement. 

Future Trends in Performance Tracking: What Lies Ahead

1. AI-integrated HRMS

The AI revolution is a revolution that brings efficiency, data-driven insights into employee performance, projects, business strategies, retention programs, development programs for employees, and more.

2. Efficient Employee Wellness

A smart PMS software allows the management to have efficient employee wellness programs. With the detailed inputs on employees performance, areas to improve, and skills required, companies can opt for the best wellness programs with personalization.

3. Skill-based Performance Metrics

Lastly, it is mentioned that companies can easily take significant skill-based development programs that further help employees contribute to goals achievement effectively.

Which HRMS Software to Select?

It is important for businesses to identify their HR and operational requirements that require a shift from paper to digital platform. It includes analyzing requirements of multiple departments, including marketing, IT, sales, accounts, HRD, and others. Analyzing requirements of each department showcase key areas to improve, including measures to improve employee skills, goals achievement strategies, and others.

Secondly, HRD should determine key solutions to adopt from top-notch attendance management system software. For instance, if the company has existing payroll software, then they may look for tools that provide other features than payroll, without making it an expensive investment. If you are looking to integrate a smart HR management tool, Kasturi HR will fit well. As it provides all-in-one HR solutions that streamline your business operations.