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5 Steps to a Human Resources Software Technology System

Select the Best HR Software Technology System for Your Organization


Employees with a desktop computer

You Need an Efficient, Effective HR Software Technology System

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Interested in a game plan for finding a Human Resources Software Technology system that fits your needs, budget, and company growth? These five steps will help you select a Human Resources Software Technology system.

  1. Determine your Human Resources technology needs.
  2. Find the Human Resources software system vendors who match your needs.
  3. Set up Human Resources Software Technology system demonstrations.
  4. Research your short list of potential Human Resources Software Technology systems.
  5. Select your Human Resources Software Technology system and obtain approval.

Determine Your Human Resources Technology Needs

Before you begin the process of setting up demonstrations and evaluating systems, you need to have a good idea of exactly what you need a system to do for you. This is the most important step of the Human Resources Software Technology system selection process. The more detailed you are with this step, the more likely you are to find a system that matches your unique needs.

Ask yourself the following questions to start the process of determining needs:

  • If you were going to create your own HR technology system, what capabilities would it have?
  • Exactly what reports would you need?
  • What data do you need to track?
  • Involve other departments such as payroll, training, and risk management to determine their needs from the system.
  • What capabilities would a system need to have to assist with meeting corporate HR goals?
  • Determine your desired type of platform. Will you host the software internally or have the software company host it for you?
  • How much are you are able to spend on a system at one time or per year?/li]
  • Will you change your payroll system, as well, or will you need an interface between your new HR system and your existing payroll product?
  • Are there any other systems that will need to interface with the Human Resources Software Technology system, such as time clocks or other HR systems?

Now that you have created a detailed needs list for your Human Resources Software Technology system, create an Excel vendor score sheet for the products you will review. Down the left side of the score sheet, list your HR system needs. Across the top add the HR technology vendor names. These systems will appear similar and you may forget which product offered which feature without this score sheet. This process will make the decision step much easier.

Find the Human Resources Software System Vendors who Match Your Needs

This step is not as easy as it might appear because of the proliferation of Human Resources Technology Software systems. If you are looking for hosted or subscription HR software applications with payroll: search using Google, Yahoo or another search engine. Then, look at a number of vendor websites. With each individual product website, you want to find a feature list to see how many of your basic needs it appears to meet. You also want to ask other HR professionals, in your industry, which systems they use and if they would recommend those systems.

There is an easier way. Search Google, Yahoo or another search engine for HRIS, HRMS or HR software comparison websites and you will find a number of sites dedicated to making this selection process easier. Check out several comparison sites, as these websites vary tremendously in capabilities and features.

Using the score sheet described earlier, at this point, you should have a list of seven or eight unique vendors. Call each vendor to make sure that each meets your most important needs and budget range. With a single phone call you should be able to get a broad price range and learn whether they offer hosted Human Resources Technology Software systems, purchased Human Resources Technology Software systems or both options.

Set Up Human Resources Software Technology System Demonstrations

Now that you have a detailed list of needs, your spreadsheet, and a list of vendors, it’s time to set up the demos. Involve other staff from different departments where feasible.

With each demo, it’s important to realize you are the prospective customer, thus, you are in control of the demo. Make sure the person doing the demo shows you every capability you have outlined in your list of needs and on your spreadsheet. If you have a particular report you have to have, ensure the sales person shows you that exact report or shows you how that report is created.

Research Your Short List of Potential Human Resources Software Technology Systems

After the demos, you will likely have your decision narrowed down to two or three systems. At this point you want to research these companies. Your research should include checking references, determining how long the company has been in business, their financial standing and the number of Human Resources Software Technology system installations they currently have.

Select Your Human Resources Software Technology System and Obtain Approval

Your decision should be easy, at this point, based on all the work you put in at the front end of the Human Resources Software Technology system selection process. Between your needs, your spreadsheet results, your research, and the system prices, make your best decision.

Gaining management approval, however, might be tricky. Cost justifying an HR technology system is not the easiest process. You will have to sell the value and the benefit of a Human Resources Software Technology system. You’ll need to show how the system will help meet organizational goals.

Part of the reason you involved other departments in the needs assessment step is that a system that benefits multiple departments may show greater value than a system that benefits a single department. Additionally, their early involvement garnered you the support you need when you seek approval for your selected system. So will the spreadsheet you used to assess potential Human Resources Software Technology systems.

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