Jan 25 2021

Why should SMEs have an HRMS tool?

“The world is going digital, everything you want or need is available at the tips of your fingers. We live in a virtual world & the digitization of processes and communication is here to stay. ”

by  Mark Ketelaars, Founder & CEO, Cadena

The world is going digital, everything you want or need is available at the tips of your fingers. We live in a virtual world & the digitization of processes and communication is here to stay. This makes it immensely necessary for an organization to digitize its HR operations. The most basic tool that every organization, big or small must invest in is a Human Resource Management System (HRMS) tool.

(HRMS is a software application or platform that automates, integrates, and manages all routine HR processes of an organization including managing employee and organizational information, Payroll & Benefits Administration, Workforce Scheduling & Shifts Management, Leave Management, Expenses Claims Management, Performance Management, Recruitment, Learning & Development, and so on. HRMS tools are not cost-effective but enable smoother process workflows, and ensure improved productivity in an organization.)

Why is a payroll platform important for an SME?

The importance of accurate and timely salary payment and even the complexity of doing it right is usually undermined, which when done improperly, can lead to devastating results (such as high turnover or even run-in with the authorities due to non-compliance).

Payroll should be smooth and fret-free for all organizations, regardless of size. As your organization expands and reaches a sizable headcount, you start getting more expectations and that’s when things start getting complicated. If you don’t have a proper system in place, you start seeing employees leave, and almost always, it’s the good ones that leave first. You don’t want that!

HRMS for SME’s

Some key points about why an SME should invest in payroll software are:

  • Increased productivity: When tedious tasks such as manually filling out payroll forms and hand-writing cheques are taken care of by software, your HR teams can focus on other essential tasks.
  • Reduced costs: Most payroll software offers affordable pricing, with basic or no minimum infrastructure costs and an affordable price per employee. Based on your requirements you can get to choose the functionalities you want in your payroll software.
  • Improved employee self-service: It allows users to operate with a single-click to manage their personal and job-related information in one place. Not just that, it helps in effectively managing millennials who like to be hands-on in getting things done without seeking help.
  • Expert Advice: A payroll software helps you get expert advice on compliance issues, ensuring that your payroll process is up to date with the guidelines.

Contemplating on adopting the best-fit technology can be a daunting task, especially when you are a startup or SME, where every dollar is vital. Many organizations believe that they do not have the budget for such software. It’s really like buying a $100 wallet vs a $1000 wallet-while basic functions are the same, but if you don’t use the specific functionalities, it’s just another piece of junk.

Similarly, much off-the-shelf software is really good to see and nice to have, but for an SME, do you really use some of those big and beautifully-worded modules that come in the package? What you really need is just something to help you solve your immediate needs, i.e. pay your employees seamlessly and on time, manage and monitor their annual leaves and maybe time in/out (if you are strict on this), and these solutions should not break your bank.

The majority of Singapore SMEs are still managing payroll in the traditional way. One of the key challenges in the adoption of technology is to educate small businesses about the benefits of an HRM and Payroll system. Most small businesses have little knowledge or even fear adopting new systems for conducting their businesses.


There are many cost-efficient HRMS tools available that are specially designed for SMEs to provide employees with their own set of tools. One such tool is Cadena’s Tembo-pay which is an easy-to-use cloud-based payroll software product specially catered for SMEs and startups. Tembo-Pay enables employees to submit leave requests, expense claims, and view their payslips within the application anywhere anytime. From a product development point of view, Tembo-Pay has been designed to be available, affordable, and extremely easy to navigate, for them. From just a few dollars a month/employee and low installation costs, there is really no excuse not to engage.

To see more benefits, efficiency, and features offered by Tembo-Pay visit https://tembo-pay.com/, and register to enjoy an obligation-free 30 days trial.


Mark Ketelaars is heading Dutch HRIS products and services company Cadena for almost 20 years. Started in Vietnam and grew the business into a cross-country operation all throughout Southeast Asia from its regional hub in Singapore.

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