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The way an organization employs its human resource processes has revolutionized the current business environment.
The global market for HR software was $16.43 billion in 2023 and is expected to grow at a CAGR of 12.2% between 2024 and 2030. This development is mainly due to automation, efficiency, and data-driven decision-making.
Traditional HR practices are essential; however, depending solely on such practices can deteriorate speed and accuracy. Organizations need to fill the gap by incorporating modern HRMS software, which introduces automated solutions to serve organizations.
These solutions integrate critical matters such as payroll, employee management, recruitment, and performance tracking. A study reveals that 58% of organizations use cloud-based HRMS tools to streamline processes.
Hybrid work models are becoming increasingly common, with a growing focus on employee engagement in 2025. As a result, organizations are shifting from manual HR operations to HRM software to enhance efficiency and support this transition.
What Is Traditional HRM?
Traditional Human Resource Management involves manual and paper-based methods. These methods help manage recruitment, payroll, attendance, performance reviews, and other HR activities. They use spreadsheets, filing systems, manual reporting, and face-to-face communication.
Traditional HRM has existed for years. This system focuses on hierarchical workflows, personal relationships, time-consuming
