How to buy HR Software: 10-Step Guide for Managers

June 18, 20151:32 pm746 views
How to buy HR Software: 10-Step Guide for Managers
How to buy HR software: Guide for Managers Before Investing

More commonly businesses are fine with managing data on excel sheets and tabulating processes instead of investing into a software that will automatise operations. But as organisations are growing and people management is now a function in itself, companies are increasingly feeling the need to adopt HR technology.

Companies are now looking to buy HR software that will help ease the mundane tasks of payroll management, attendance records, day offs and so much more. They want to do away with the outdated legacy systems at work place.

The latest systems seek beyond offering the norm. They focus on more productive functions such as talent management to boost the role of HR at workplace.

So if your firm has been to one of these HR Tech Expos recently and is keenly on lookout to buy user-friendly HR software, then this is the guide for you.

If you have no idea of where to start, this ten-step process will help you ease your immediate worries and entrust the pre-requisites to a reliable software vendor.

Perhaps, we assume you maybe already embroiled in selecting the right vendor, but lack confidence to make the right choices that meet customised organisational goals and requirements. This ten-step module is meant to help the novice make strategic decisions when it comes to purchase of HR software that meets the company objectives, goals and needs.

  1. Improve your understanding and knowledge of the HRMS system

Check if the functionalities of the HRMS (Human Resource Management System) can be attuned to your organisational requirements. Get familiar with the types of capabilities provided by the HR application and run through a comprehensive set of questions on mind. Seek answers from the software system before eventually making a purchase call.

  1. Create detailed requirements and set expectations right

Sometimes organisations invest into a software product with over-rated expectations that this solution will address all human resource problems. However, in reality this never is the case. Each solution is uniquely customised to meet different organisational needs and goals that can be achieved only if you have pre-set details in specifics.

  1. Determine your budget and software needs

As an organisation, looking to invest into HR software purchase, you need to stay abreast of the industry trends and seek for products that meet your exact organisational needs.

  1. Evaluate HR systems

It is quintessential to evaluate HR systems before entering into a buy deal. Understand the feature, options and customisation benefits provided by the HRM tool and evaluate if the price of the product justifies the value proposition offered.

See: HR Managers need to think like economists

  1. Research many companies and pick few

You need to conduct sound market research to understand different HR systems available in the market and those used by your competitors, to carefully analyse and estimate if this tool is your best bet. Seek information from many HR software solution providers and choose few from those, by weighing on the pros and cons, before entering into a purchase deal.

  1. View Demos before deciding

A part of evaluation process to decide on the most suited HRM tool for your organisational needs can be possible only if you get a detailed overview of the tool functions with a demo. Call the HR solution providers and arrange for demos at your convenience, either online or offline at your workplace. The vendor will visit you and enlist the strengths of the product, however weaknesses in the system is left to your exploration, curiosity and discovery.

  1. Set realistic software implementation expectations and price

As you look for various options from different HRM solution providers, identify the price variants and reasons for an extra charge, if any. You can easily distinguish some based on the features offered and up gradation package. While the cost of software and support will be fixed costs, there is always scope for variables in the form of installation costs when setting up a HRIS.

  1. Look for value additions post purchase of the software

While it is difficult to prove cost savings during the implementation of a human resource application, you need to instead focus on value additions. This will require HR department to align the business objectives and streamline it in sync with long term vision of the company, understand the challenges and problems posed during implementation and how this software system will assist the organisation and workforce to do a better job.

These questions need to be answered as they are critical to success and only if you are thoroughly convinced with the software solution, you can proceed to gain approval from the top management before purchase of the HR software.

  1. Understand the license and contract terms

Software companies are always careful to protect their own self interests before offering value-added service to customers. Read through the software license carefully before purchase and understand the terms and conditions clearly defined in the agreement, and if required make sure that amendments, revisions and demand additions are made.

In case you are uncomfortable with the provisions of the license, speak up. Since the software companies are bound by licenses and contracts, you need to make sure that they do not work it against you. Finally, look into contract termination clauses as well, in case you need them in future.

  1. Installation, Implementation and Escalation

You need to look for software companies with competent and experienced technicians, and ask about individuals who would assist you with installation. Also sound technical support staff should be made available to handle bugs and technical glitches.

You need to enquire if repairs will be guaranteed by the HR software solution provider quickly and easily. Ask about the expected time frame for resolution. You need to find your next course of action, if you are not satisfied with the final outcome.

We hope this 10-step guide will prove helpful for managers to make wise HR software purchase decisions based on careful considerations judiciously.

Also read: This software can predict when you’ll leave your job

Image credits: ceridian.co.uk

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