What you must know before choosing an HR software

This article is written for HR professionals and business leaders who ambition to change their HR software.

Do not settle for an HR payroll system for your HR development priorities

….Except if your company can afford a global system such as SAP or workday.

For a simple main reason : User experience provided by Payroll HR software companies are not (yet) good enough. Buy in from your internal users, including business line managers depends on their user experience. Your HR Software must help managers to better manage teams. Having complicated and non-intuitive interfaces may give managers arguments to not perform their basic management job duties (ie : continuous appraisal, documenting feedback, performing goal setting and competency development roadmaps etc).

Tip : Place user experience as a main criteria of your HR system selection!

Master the basics and start with Core HR FIRST

Sounds logical ? Before you think about 9 grid or succession planning visualization, work on a common Employee database and Core HR.

You do not want to end up with too much data sources, especially if you are managing several countries. Having an harmonized data system will help you save the hassle of data collection on a weekly, monthly basis..

Tips :

• Link your core HR database with your employee directory, payroll system and BI tools.
• Get your IT involved!

Evaluate cost of current HR systems and define ROI opportunities

Depending on organizations, HR systems are not a top priority for top management. To get your management buy in, try to explain your HR system with a cost and productivity mindset. Make the comparison with other existing systems that may exist in the company (Ie : Finance department).

When making your cost evaluation, include :

• Yearly license costs of your current HR systems
• Cost of previous customizations — Year to date !
• Previous implementation cost
• Time spent collecting data from your different systems etc.

Tips to highlight your Return on Investment with the new system:

• Compute total cost of your selected system — Your choice should minimize customization costs!
• Focus on time spent on redundant tasks your new HR system could fix. Redundant tasks are not valid just for HR, but also for all current users of your HR platform. Come up with an average cost $.
• Quantify what HR will do with time saved and how does new activities will profit the company.

Example : Aim at a % increase in your employee performance outputs if your system allow you to link training management with Performance management.

Look at scalability

Although you may see the short term benefits of the new HR system, settle for a vision.

Example

• Year 1. Core HR integration
• Year 2. Recruiting, onbaording and Performance Management
• Year 3. Learning and development, Talent Management etc.

Or all at once.

You need to get how much will the system cost over the long run. Next question is, can you afford your vision?

Tips :

• Minimize tailor made customizations !! Here is a scalability killer you should avoid. Instead, grab the opportunity to simplify and streamline existing processes.
• Evaluate cost of maintenance.
• Close the loop with your top management and agree on HR system vision.

Integrations, integrations, integrations

Besides basic integration with Microsoft suite, gmail etc, you’ll need your system to integrate with internal and external interfaces. Here is what the future looks like :

Interfaces with internal and external parties

Mandatory top 3 integration list :

1. Integrate single sign on

2. API with existing Payroll software(s)

3. API with LMS

In 2020 and 2021, LMS is a standalone. E-Learning content is most likely separated from your learning management module.

Tips :

• Cloud solutions and SAAS HR system are integration friendly!
• Link LMS with your new HR system Learning & Development module. Make sure trainings given communicate with your Performance Management module.

Do you have any recommendations before purchasing an HR software? Share your experience in the comment section below.

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