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Choosing The Right Human Resources Software For Your Company
Written by James Black   
Human resources management systems are varied and dynamic not only in their creation but even more so in their implementation. Because HRM systems cover virtually every human resources need available this is to be expected. With such a wide and dynamic HRM industry, how does a company decide what program will best apply to their needs? Also how does one go about comparing different systems offering such different services?

First, decide what exactly your company needs from a software program. Next, learn about the various HR management systems and what they are capable of. At this point you will most likely go back and update what needs your company has as the research will probably uncover some unanticipated needs. Then compare the systems that fit your needs to select the best one. Research the costs of the program and the companies that make them. It can be a seemingly confusing task at first, but following this basic strategy will simplify it.

Learn about what systems are capable of

Every human resource software application is different. However, most will be able to do a similar set of basic functions. Some systems will have emphasis on one area while going lighter in another. For example, in the health care industry an HRMS is going to be very training intensive due to the need for credits and training programs required to keep nurses and doctors current with any and all certifications. It will likely even have a learning management system specifically for tracking, updating, enrolling, and otherwise handling all the information involved in the organization and maintaining of the classes.

Some standard options

  • Payroll and attendance tracking
  • Benefits administration
  • Recruitment
  • Training
  • Performance review
  • Employee self service

Determine what your company specifically needs from an HRMS

As every company has specific needs for any given system, it would be helpful to compile a list of requirements for an HRMS. Of course this may not be all inclusive. As you review and compare different HR systems some unanticipated features and conveniences will appear undoubtedly. Here are some of the basic needs most companies look for:
  • Compatibility with OS (Mac or Windows, latest version compatibility)
  • Ease of use
  • Integration and interfacing capabilities
  • Customization capabilities
  • Employee self service
This can be used as a starting point when compiling a list of options in an HR system that would ultimately benefit your company most.

Compare the HRM systems with a consistent technique

After paring down the number of HR management systems, be sure to sample each system. This will give a feel for exactly how the processes and options are exercised. Some systems can be more complicated while others simpler. Depending on the needs of any specific company this may be better or worse. When comparing the feel of one system to another try to standardize the process of comparison. Make sure that if your company is interested in ease of use that you experience the same applications in each HRMS. If integration is important, set up a couple examples for how the different systems interact with each other and be sure to do the exact same thing with the other systems to really get a feel for how they compare side by side.

Determine the true cost of the HRMS

Determining the price is one of the final steps in determining which HRMS will be best suited for your company. This step will help tighten the criteria for some of the few remaining systems after selecting those that contain the features needed. There are two options for pricing - licensed purchase or software as a service.

By purchasing the software outright and installing and running the application most of the costs are incurred initially. There will, however, be upkeep costs associated with maintaining the system via an IT tech or potential updates. Using ‘software as a service’ allows the initial cost to be deflected and also out sources IT. Usually the program is run as a web based scenario and any IT issues are taken care of by the provider. SaaS can charge a flat monthly rate for the service or can base the fees per employee.

Either way, comparing the benefits in relation to the costs of the implementation of the HRMS will help determine what is truly affordable. Rather than simply looking into petty cash or fitting the cost into the budget, work up a report specifying exactly how much time the program will save and how much more efficient the program would make the company. Be sure to include all departments that stand to benefit.

Research the company in addition to the HR program

Be sure to do research on the companies themselves. Check online boards and ask business associates about the HR management systems they might be using and any complaints or praises they may have. Find out how many years the company has been in business as well as how many years the HRMS has been in existence. It will help to know how prevalent the program is in the industry so find out how many installs the program has. All of these factors can give you some idea as to what to expect for the quality of the product and also support.

Although choosing the right HRMS might initially present a learning curve for the business with little knowledge of such things, rest assured that learning about and integrating your company with this important technology will ultimately streamline it and ensure that it will be able to stay competitive in a business environment that is increasingly automated and technology intensive.

Human resources management systems vary and therefore learning more on what features and benefits they offer will make your choice easier.
 
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