Choosing HR software is a challenging task that requires thoughtful consideration. Therefore, we have compiled a simple guide to make the process easy.
The corporate world is expanding at a rapid rate with newer trends emerging all the time. From automation to AI, these trends are everywhere. And guess what, it’s reshaping the way how companies operate, making time-consuming and labor-intensive tasks simpler.
Human resource software is no different; they are also upgrading every now and then. But the question is, do we need all these upgrades? Don’t they have any drawbacks? What if the HR software doesn’t work for you? What will you do then?
To make things easy, we made a simple and easy-to-understand guide to help you choose the right HR software for your company.
How to Choose the Right HR Software
Choosing the right HR software can be tricky if you don’t have a clear understanding. You might get confused by seeing the diverse options they provide. So, to help you choose the perfect human resource software, we have made a small guide that’ll definitely be helpful.
HR software in UAE, US, UK, or any other parts of the world has the same basic operational process. It benefits the company by streamlining the process from payroll management to integrated employee management, saving time and money.
So, without further ado, let’s start on how to choose an HR software by following these steps.
1. Know The Types of HR Software
To choose the right HR software for your business you first need to know what types of HR software are available. Any software or management module used in business to optimize and streamline HR tasks can be termed human resource software.
So here are the five basic types of HR software in the industry:
- Human Resources Management Systems (HRMS)
- Human Resources Information Systems (HRIS)
- Payroll Systems
- Applicant Tracking Systems (ATS)
- Human Capital Management (HCM)
HR software is not limited to these tasks only though.
2. Identify Your Requirements
You need to specify your requirements at this stage. Selecting an HR software randomly will make you feel like it isn’t meeting your requirements. So, you need to have a clear understanding of what you want or what your company requires.
First, you need to check the number of employees you have. Then review your current management system and find what isn’t working for you. If you don’t have a management system in place, simply make a checklist of what you require.
Then, communicate with HR and the associates about the problems they are facing on a daily basis. Also, get suggestions and reviews from them on how to make things better.
We also recommend you discuss with senior employees to get proper advice regarding future projects or the things your company needs in the coming years. This is important for a long-term plan, as old software gets outdated whenever new and easier processes are introduced.
After having a clear idea of what you require, document them, and compare your available options.
3. Consider The Essentials
After making the list of requirements, you will have a clear idea of what to look for. Make sure you don’t miss the four crucial features of HR software:
When considering your options try to choose one that has all these features. But why do you need them? Let’s find out!
The HR department is a rich repository of data, which can be used to create organizational strategies. But you’ll need the proper tools to refine and analyze this data.
You can use modern HR software systems like HRMS (Human Resource Management System) and HRIS (Human Resource Information system) to get detailed analytical reports. Also, you can use general-purpose software to create visual presentations based on this data.
It is important to know what kind of business you are and what sort of data you frequently deal with. Knowing this will help you choose your human resource software appropriately.
Integration is another key aspect you should consider. As companies are using different software and systems to make their business run smoothly, software systems need to connect seamlessly with each other.
The integration process can be challenging if you don’t have the appropriate HR software. So, you must consider the need for integration as well. It’s a good idea to hire an IT consultant to customize an integration module as per your requirement.
The teams within the company expand as the business grows. But can the software keep up with this extra load? This issue is known as scalability. You need to handle the increased demand.
In-house human resource software sometimes fails to meet these extra demands and thus needs extra servers. To resolve this issue, you can invest in cloud-based HR software which can easily scale it up.
Though this might cost you some extra bucks, this is a great investment if you want a future-proof solution.
Every human resource software contains highly sensitive employee data. So, security should be your topmost priority when making any decision. There are a few security factors you should consider when choosing HR software.
Ease of Access
When choosing a system, you need to consider one in which everyone in the company can access data with the option to limit access to sensitive data. You surely don’t want to share the salary-related info with everyone, do you?
Ease of Use
A complicated system can cause users to make mistakes. Also, there are certain security risks associated with it, like, downloading data on a personal device or uploading personal data on the server. So, the system should be easy to operate for all the users.
You can consider 2FA (two-factor authentication) as the front-end security. It will safeguard personal data and protect user accounts from unauthorized access.
You need to consider internal security measures if you get a cloud-based system. For example, do they have backup options if the server somehow crashes? Always choose a reputable provider with a reliable track record.
No matter what HR software you choose, never compromise on security, even if that means going for an expensive option.
4. Fix A Budget
Cost-cutting is a fundamental feature of HR software. But you shouldn’t cut costs when choosing one. Obviously, you need to stay within a budget, but don’t hesitate to go a bit higher, if it meets all your requirements.
Keep in mind that prices can change during implementation. So you need to allocate additional fees in your budget.
5. Take a Trial Before You Make Your Purchase
After determining your requirements, you need to ensure the software’s functionality matches your HR requirements. It’s a great idea to try out the software before buying it, as it will help you understand the software and verify if it fulfills your requirements.
For example, all the human resource software includes the standard function of leave or holiday management. However, most of them don’t have integrated payroll processing. So, you need to be careful while choosing HR software by checking if all your boxes are ticked.
You can ask for a free demo from the software providers. It will help you to compare and try your options. Nowadays, most providers give a free trial, so you might not have to ask for a free demo. Then, you can carefully check the effectiveness of the software and point out the things that don’t meet your requirements.
You can also create a spreadsheet for different software. It’ll help you quickly compare the software and find the best-suited one for your business.
6. Review Terms of Contract
A software provider is also doing business just like you. So it is understandable if a provider prioritizes their interest over yours. That’s why you need to go through their contracts and license agreements carefully. You should clarify your doubts if you have any before signing an agreement.
7. After-sales Support
Another thing most people forget is after-sales support. First, you have to ask your provider what support they will provide after you purchase their software. If you don’t ask, they might not provide you with any support at all. So be sure to clear out these things before sealing the deal.
There is no one-size-fits-all option when it comes to selecting human resource software. So you should do a lot of research and comparison to find the right one. A clear list of requirements, plenty of research, proper comparison, and an effective trial is required to find and choose the perfect match.
Remember that choosing the right one can boost your business and keep employers and employees happy. Hopefully, our guide can help you choose the perfect HR software for your business. Good luck with your software hunting venture.