So you've been asked to look into Human Resource or HRMS software for your organization. A quick internet search turns up a large number of companies that appear to have similar offerings. In fact, there is a wide range of systems available that target different markets. Some claim to work for any organization, whereas others appeal to specific verticals like construction, oil and gas, and manufacturing. Some may seem “fully loaded” with features you may never use, and others may be too simple for your level of customizations. Above all, they each come with their own unique price tag that may or may not suit your organizational budget.
The search for “HR Software” can often become more cumbersome than it needs to be if you’re not asking the right questions. Therefore, we’ve compiled a list of the “Six Questions You Must Ask When Considering HRMS Software.”
These days, there seems to be two main pricing and delivery models available for purchasing software. One is similar to buying a car with a full payment upfront, whereas the other is more like leasing a car with lower monthly payments.
If you’d like the software to reside on your servers, behind your own firewall, tended by your own IT staff, you’re more than likely going to lean toward the traditional licensed software model. This means you pay one lump sum for the system, plus an annual maintenance fee for support and updates. Your company will be in control of your system, and your IT team will be responsible for the data security and system up-time. On the contrary, if you’d prefer to make your own decisions for your department, without waiting for the IT team, the hosted or “cloud” model may suit you best. This option would grant you access the system from anywhere in the world at any time through the web, with no need for IT to install any software or tweak any hardware on your systems.
With the latter option, you’d pay a low monthly fee for each user on the system, and the vendor would be responsible for guaranteeing the safeguarding of your data, and keeping the system working. Generally you can pay for a cloud solution out of your operating budget instead of asking for approval for a capital purchase.
Have you ever heard the saying “we’re only as good as our customer’s say we are”? Well, it’s true. You can’t afford to rely solely on what the software vendor says, you should always ask for case studies or the contact information for a reference customer so you can get the real story. Ideally, you’d like the reference account(s) to be in the same or a similar line of business so that it’s more relevant to your needs. Ask them how smoothly the installation and training went, how gracefully the vendor handled any issues and what’s keeping them a customer. The vendor’s attention to customer service should figure prominently in your purchase decision.
You may come across a large organization that stands behind the vendor because they truly believe in the system. There are a number of large government and industry organizations that will endorse vendors they believe are superior in the industry. If you recognize an organization that stands behind a particular vendor, you can feel an added level of comfort regarding the software’s functionality and the company’s reputation.
While most software companies appear to have everything you need to properly manage your HR program, it’s important to think of how your needs will shift in the long term. If you were to double the size of your workforce, would the system hold up? Would the cost of the system remain affordable? It’s vitally important that your systems grow as your company grows. Ensure your vendor is able to facilitate the organizational growth while attending to any additional requirements or customization you may require in the future.
Any organization can claim that they know your industry, but a vendor that can demonstrate success with other companies in your industry would have already dealt with the nuances that your company requires. It’s important to question how many customers they have in your sector, or how many of their customers face similar challenges. The vendor’s expertise in your line of business saves you the trouble of educating them about how your industry works. It’ll allow you to receive advice and best practices for solving common problems in your field (an added bonus that not many vendors can provide).
Many companies offer a free trial but leave you alone with the help button to navigate your way through the system. Ask the vendor if they can provide you with a custom demo over the web to walk you through how it’ll meet your specific needs. Request to engage with a real person as opposed to a “helpdesk”. You want the ability to schedule a demo in your own time and when it works best for you. A guided demo will allow you to ask questions, schedule a meeting with the key decision makers in your company, and get everyone’s opinion on whether or not it’s a viable option for your organization.
Before the demo, it’s easiest to make a list of features that you want to see. See if the vendor can load your actual employee information or present their sample data in a way that’s familiar to you and your colleagues. As the demo unfolds, study how user friendly the system seems to be, and how well it solves the problems you throw at it. Do you need to manage employee training and leave? A successful demo will let you clearly visualize how the system would be used in your organization.
Selecting a HRMS software can be as simple as it sounds. Let OrangeHRM walk you through a guided demo and answer your questions today.