5 Popular MYTHS about HRM software: Solved!

As the HR technology is evolving, HRM software are more popular than ever. However, this time-saving efficient software bring with them some myths. So today’s topic points on the common confusion people have about HRM software and solve the myths once and for all.

1. HRM software replaces HR staff

There are quite a few HR misconceptions about this particular myth. The sole purpose of HRM software is to make the functionality of HR staff easier.

HRM software have payroll management systems, project management options, recruitment features and many more. But at the end, an HR staff is the one who analyses all the data. The job of the HRM software is to assist the HR employees.

HRM software is developed to organize, store and analyze certain data on behalf of the HR staff. In doing so, it improves the efficiency of the entire team and frees employees to do work with higher functionality. For example, instead of spending hours on managing accounts, the HR staff can simply input all information in the HRM software for individual employee accounts. They can spend the extra time to analyze staff performance, applicant tracking and other tasks.

2. All HRM software is expensive

A lot of people have a general idea that HRM software is a costly affair. When various companies first started launching HRM software that was the case. However, now HRM software cater to businesses of all sizes. This makes them have much more cost-effective plans based on what small and large businesses require.

Many HRM software are open source that require small businesses to get the basic features for free! You can then decide the plugins you need and for how long according to your budget.

Some of the HRM software have subscription-based fees with a variety of services. This helps you have a fixed expense cost without having to worry about additional costs.

HRM software is a good investment and helps you stay competitive in the ever-changing world of HRM. So don’t let this myth stop you from installing an HRM software for your business.

3. HRM software is only for big businesses

If you own a small business you might have dismissed the idea of an HRM software as an unnecessary expense. However, strategists believe that the sooner you incorporate HRM software into your HR system the better.

Your business might currently have a handful of employees but that might not be the case in the future. As your company grows bigger, you need to input more data into the software. But if you start using HRM software from the very beginning you will already have most of the information stored.

Most HRM software these days offer you a variety of services depending on the size of the business. Some even give free services if your total employee number is under 5 people.

Like big businesses and corporation, your small business needs proper HRM management too. You still need to store data, manage payrolls, track attendance, and analyze performance. So remember that HRM software is not based on size but based on your needs!

4. HRM software requires a permanent IT employee

This is probably the most outrageous myth of all!

The HRM software in the current market are known for their simplicity. Most of these software come with step-by-step guide and tutorials. They also have dedicated customer service agents who are ready to answer your questions at any time.

You can always contact vendors of the software in case you have an issue. But an IT employee is not required by any means.

The HRM software these days have the platform interface similar to a lot of social media platforms. So it really does not get any easier than that!

5. HRM software solves all problems

As mentioned earlier, the job of HRM software is to make the existing functions much more efficient. However, the strategic management and planning is still dependent on the HR team.

If there are issues in your HR management strategy, the software can at most help to detect it. The actual planning is still dependent on you and your team. The corrections of the loopholes in your system has to be done by the employees as well.

For example, the HRM software can help generate reports on the performance of certain departments based on certain criteria. It can’t improve the actual performance of the department itself.

So HRM software is the helping hand that you need to make your business faster and more efficient. But it won’t help solve all your problems!


These myths create hesitation for many business owners to install HRM software. HRM software assists in making HR functions much easier and efficient. So don’t let these myths stop you from bringing innovation to your business. Stay tuned for our next post where we discuss main HRM features and how it helps your business!