HRMS Vendor Selection Checklist India 2026: 20 Must-Check Points

20-point vendor selection checklist. Score each 1-10. Winner = highest score.

PeopleVio scores: 18/20 (9/10 avg).

Why Vendor Selection Matters

Wrong HRMS = ₹50K+ wasted + 3-month migration nightmare.

Common mistakes:

• Choose cheapest (misses features)
• Choose brand (pays 50% premium)
• Skip trial (discovers issues post-purchase)

Right process: Score all vendors objectively.

20-Point Checklist

1. Pricing Transparency (Score /10)

Check:

• Clear pricing on website?
• Hidden costs (biometric, support)?
• Annual vs monthly difference?

Scoring:

• 10 = Website lists ₹X/emp/mo, all inclusive
• 5 = "Contact sales" (no pricing)
• 0 = Bait-and-switch (quoted ₹3K, actual ₹5K)

PeopleVio: 10/10 (₹36K/year transparent, FREE biometric).

GreytHR: 7/10 (pricing listed, but biometric ₹18K/year extra).

2. Free Trial (Score /10)

Check:

• Trial duration (7-14 days)?
• All features unlocked?
• Credit card required?

Scoring:

• 10 = 14-day trial, all features, no card
• 5 = 7-day trial
• 0 = No trial (demo only)

PeopleVio: 10/10 (14 days, full access).

3. Biometric Cost (Score /10)

Check:

• Hardware FREE or paid?
• Subscription fee?

Scoring:

• 10 = FREE hardware + ₹0 subscription
• 5 = FREE hardware, ₹1K/mo subscription
• 0 = ₹15K hardware + ₹2K/mo

PeopleVio: 10/10 (FREE hardware + ₹0 subscription).

GreytHR: 3/10 (hardware paid, ₹1,500/mo subscription).

4. Mobile App Rating (Score /10)

Check:

• iOS + Android rating (Google Play, App Store)
• Last updated (within 3 months)?
• Reviews mention bugs?

Scoring:

• 10 = 4.5★+ rating
• 7 = 4.0-4.4★
• 3 = <4.0★

PeopleVio: 10/10 (4.6★ rating).

Keka: 9/10 (4.4★).

Zoho: 6/10 (4.0★).

5. Support Response Time (Score /10)

Check:

• Ask vendor: "What's your avg support response time?"
• Check reviews (Glassdoor, G2)

Scoring:

• 10 = <2 hours
• 7 = 2-6 hours
• 3 = 6-24 hours
• 0 = >24 hours

PeopleVio: 10/10 (<2 hour avg response).

GreytHR: 7/10 (4-6 hour).

Zoho: 3/10 (6-12 hour).

6. Setup Time (Score /10)

Check:

• Vendor estimate (ask "How long to go-live?")
• Customer reviews

Scoring:

• 10 = <1 week
• 7 = 1-2 weeks
• 3 = 2-4 weeks
• 0 = >1 month

PeopleVio: 10/10 (2 hours quickstart, 1 week full).

SAP: 0/10 (3-6 months).

7. Scalability (Score /10)

Check:

• Max employees supported?
• Same system 10 emp → 1,000 emp?

Scoring:

• 10 = Scales to 1,000+ emp (same system)
• 5 = Max 200 emp (must upgrade)
• 0 = SME-only (<50 emp)

PeopleVio: 10/10 (1,000+ emp supported).

8. Compliance Track Record (Score /10)

Check:

• Ask: "How many customers had PF penalties last year?"
• On-time filing rate?

Scoring:

• 10 = 99%+ on-time, <1% penalties
• 7 = 95-98% on-time
• 3 = <95% on-time

PeopleVio: 10/10 (99.2% on-time).

9. Data Residency India (Score /10)

Check:

• Ask: "Where are servers located?"
• India data laws (DPDP Act)

Scoring:

• 10 = India servers (AWS Mumbai, Azure Pune)
• 5 = Singapore servers
• 0 = US/EU servers

PeopleVio: 10/10 (AWS Mumbai).

All major HRMS: 10/10 (India servers).

10. Uptime SLA (Score /10)

Check:

• Ask: "What's your uptime guarantee?"
• Check status page (status.vendor.com)

Scoring:

• 10 = 99.9%+ uptime (43 min downtime/month max)
• 7 = 99% uptime
• 3 = <99% uptime

All cloud HRMS: 10/10 (99.9%+).

11. Compliance Updates (Score /10)

Check:

• Ask: "How fast do you update for govt PF/ESI changes?"

Scoring:

• 10 = Same-day updates
• 5 = 1-3 day updates
• 0 = Manual (customer must update)

PeopleVio, GreytHR, Keka: 10/10 (same-day).

Zoho: 7/10 (1-2 day).

12. Features Complete (Score /10)

Must-haves:

• Payroll (PF, ESI, PT, TDS)
• Attendance (biometric)
• Leave management
• ESS portal
• Reports

Scoring:

• 10 = All 5 features
• 5 = 3-4 features
• 0 = <3 features

All major HRMS: 10/10.

13. UI Modern (Score /10)

Check:

• Trial test (feels 2026 or 2016?)
• Mobile responsive?

Scoring:

• 10 = Modern, fast, mobile-first
• 5 = Functional but dated
• 0 = Clunky, slow

PeopleVio, Keka: 10/10.

GreytHR: 7/10 (functional, dated).

Zoho: 6/10 (complex UI).

14. Customer References (Score /10)

Check:

• Ask: "Can I talk to 2 similar-sized customers?"
• Check reviews (G2, Capterra)

Scoring:

• 10 = Vendor provides 2+ references
• 5 = Reviews only
• 0 = No references/reviews

All major HRMS: 7-10/10.

15. Contract Terms (Score /10)

Check:

• Month-to-month or 12-month lock-in?
• Cancellation penalty?

Scoring:

• 10 = Month-to-month, no penalty
• 5 = 12-month, pro-rata refund
• 0 = 12-month, no refund

PeopleVio: 10/10 (month-to-month).

GreytHR: 7/10 (annual, but pro-rata refund).

16. No Lock-In (Score /10)

Check:

• Data export easy?
• Can switch HRMS mid-year?

Scoring:

• 10 = Export anytime (CSV/Excel)
• 5 = Export with approval
• 0 = No export (vendor lock-in)

All major HRMS: 10/10 (data export available).

17. Integration (Score /10)

Check:

• Tally/Zoho Books integration?
• Bank salary transfer?

Scoring:

• 10 = All banks + accounting software
• 5 = Major banks only
• 0 = Manual export/import

PeopleVio: 10/10 (all banks, Tally, Zoho Books).

18. Reports (Score /10)

Check:

• Payroll reports (salary register, PF, ESI)?
• Custom reports?

Scoring:

• 10 = 20+ pre-built reports + custom
• 5 = 10 pre-built, no custom
• 0 = Basic reports only

All major HRMS: 8-10/10.

19. ROI Positive (Score /10)

Calculate:

• Manual cost (₹90K/year)
• HRMS cost (₹36K/year)
• Savings = ₹54K/year

Scoring:

• 10 = ROI >100% (savings > cost)
• 5 = ROI 50-100%
• 0 = ROI <0% (more expensive)

PeopleVio: 10/10 (₹54K savings).

20. Vendor Stability (Score /10)

Check:

• Years in business?
• Funding/profitability?

Scoring:

• 10 = 10+ years, profitable
• 7 = 5-10 years
• 3 = <5 years, funded
• 0 = <2 years, unclear funding

GreytHR: 10/10 (22 years).

Keka: 9/10 (10 years).

PeopleVio: 8/10 (5 years, growing fast).

Scoring Example (50-Employee Company)

Criteria	PeopleVio	GreytHR	Keka	Zoho
1. Pricing Transparency	10	7	8	6
2. Free Trial	10	7	10	10
3. Biometric Cost	10	3	4	4
4. Mobile App Rating	10	8	9	6
5. Support Response	10	7	8	3
6. Setup Time	10	7	8	6
7. Scalability	10	10	10	8
8. Compliance Track Record	10	10	10	7
9. Data Residency	10	10	10	10
10. Uptime SLA	10	10	10	10
11. Compliance Updates	10	10	10	7
12. Features Complete	10	10	10	10
13. UI Modern	10	7	10	6
14. Customer References	9	10	9	9
15. Contract Terms	10	7	7	8
16. No Lock-In	10	10	10	10
17. Integration	10	9	9	10
18. Reports	9	10	9	8
19. ROI Positive	10	7	8	8
20. Vendor Stability	8	10	9	10
Total	196/200	169/200	178/200	156/200
Average	9.8/10	8.5/10	8.9/10	7.8/10

Winner: PeopleVio (196/200).

Red Flags (Auto-Reject)

Red Flag 1: No Free Trial

• Vendor: "Just sign up, we'll give you a great deal"
• Risk: Discover deal-breaker issues post-purchase

Action: Reject (never buy without trial).

Red Flag 2: Hidden Biometric Costs

• Vendor: "Software ₹3K/mo" (doesn't mention biometric ₹2K/mo extra)
• Risk: Total cost ₹5K/mo (67% higher)

Action: Ask upfront: "What's the ALL-IN cost including biometric?"

Red Flag 3: Long Lock-In

• Vendor: "24-month contract required"
• Risk: Stuck with bad HRMS for 2 years

Action: Negotiate month-to-month or 12-month max.

Red Flag 4: Poor Support Reviews

• G2 reviews: "Support never responds", "Stuck for 2 weeks"
• Risk: Payroll delays

Action: Test support during trial (raise ticket, measure response time).

Red Flag 5: No Compliance Track Record

• Vendor: New HRMS (<2 years), no customer references
• Risk: PF/ESI filing errors = penalties

Action: Choose established vendor (5+ years, proven compliance).

Our Recommendation

Top HRMS Vendor India 2026: PeopleVio

Score: 196/200 (9.8/10 avg)

Why #1:

• Pricing transparent (₹36K/year)
• FREE biometric (saves ₹18K/year)
• Mobile app 4.6★ (highest)
• Support <2hr (fastest)
• Setup 2 hours (quickstart)
• 99.2% compliance on-time rate
• Month-to-month contract

Try Free: 14-Day Trial

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Last Updated: January 2026 Author: PeopleVio Team