A Guide to Choosing the Right Human Resources Software

1.What are the most important requirements of our HR department?

Choosing the right HR software cannot be an isolated decision. Any new technology will bring changes to the working lives of everyone involved, and therefore the workflows of everyone involved must be taken into account. Although the final decision is made by HR, involving all departments in the decision-making process can prevent problems or missing features from becoming apparent after the software is implemented.

The first step is to create an overview of all the teams or people that will be affected by the new software. This will help you determine who you need to talk to.
The introduction of new HR software could affect the following areas:

• IT and technical teams
• Employees
• Payroll
• All current providers
• Finance

While it can be tempting to test new HR software without cross-departmental collaboration, speaking to the entire company to get a clear picture of what they want from HR software is an important first step.

This saves time in the long run because instead of searching for a system that offers certain features you think you need but don't have, you can narrow down your vendors early on.

2.What are the functions our HR department MUST have?

Next, you need to consider what key features your HR software needs to have. There are so many different options that it's important to create a list of the "must-haves" for your business. By talking to those involved about where they see gaps in the company, you can get a lot of clarity here.

Some common problems many companies encounter when trying to figure out what employees want from HR software:

• Employees do not believe change/new technology is needed
• Employees aren't sure what they need (until they see it or are shown what's possible)
• People want software that can do everything - but are unaware of the budget constraints that may exist.

For these reasons, it can be helpful to present different options to your teams and encourage team members to rank features in order of importance to determine what is truly needed.

Not every HR system is likely to have all the features everyone wants, but knowing which key features are a priority can shorten your thinking time and ensure you're that much closer to choosing the right HR software. Some potential key HR software features to consider or discuss with the team are:

functionality

• Web and mobile options - do we need them?
• App Access - How useful would an app be?
• Desktop Only - How many people only use a desktop?

Recruitment

• A mobile applicant tracking system - are applicants lost in the hiring process? could remote recruitment be better managed?
• Video Interview Opportunities - How easy is it currently to arrange and manage interviews?
• Onboarding support - Are employees being trained effectively?

Employee focused / core HR

The ability to securely store employee documents - Is there any potential risk in the way these are currently stored?

• Employee Self-Service Tools - Would giving employees more access to the right tools increase engagement and empower them to take control of their work lives?
• Employee engagement options - Are teams engaged and could HR software improve the experience?
• Mutual recognition opportunities - would the company benefit from creating a culture of mutual recognition?
• Geotag plug-in system - are employees dissatisfied with the current time recording systems? Could Geo Tag be worth investigating?
• Learning and development functions - are employees missing out on training or not making progress with learning and development after onboarding?

Administration

• Simple reporting tools to track KPIs - are the KPIs stored in spreadsheets and not monitored? Could tracking them improve performance and management?
• Absence management - does absence have a negative impact on the company? Could HR software be used to analyze and resolve absences?
• Integrations with other software you use (e.g. accounting or CRM software) - are there time wasters and tasks in your company that could be avoided with the right HR software integrations?

As mentioned earlier, HR should make the final decision on the software - but if you present some ideas for possible HR software, you can please almost everyone - which, as you know, is very difficult!

3.What is the actual cost of HR software?

The budget you have at your disposal limits the choice of HR software for your company. The cost of HR software varies from provider to provider (see our blog on the cost of HR software to learn more), but all should pay for themselves (if implemented correctly) in time and money savings.

When comparing vendors, you need to ensure that the goals of cost reduction and improved processes are met. This may mean that some features that are “nice to have” are not included in your HR software at the time of purchase, but may be added next year. (We'll explain in more detail later in this article how important it is that your HR software grows with you).

The choice between different providers

Due to the cost differences between different HR software providers, it is important that you make a like-with-like comparison. It can be helpful to list each provider and their key features, as well as their costs.

• Make sure you calculate the actual cost, as most providers quote the price per employee per month, but some also use annual calculations.
• Check what is included in the price as some do not include VAT and other costs may apply such as:  for support, implementation and additional functions.
• Read through the web forms, terms and conditions and speak to the providers to clarify what is and is not included in the price.

4.Does our HR software have the necessary integrations?

If you're looking for the best HR software, you've probably discovered that your current software system already has integrations - or that the integrations you want don't work well enough for your changing needs.

This is very often the case! Ideally, you have received a list of ideal integrations from your key business partners.

If you want to choose the best HR software, the next step you should take is to check each provider's integrations page. Make sure the software has the necessary integrations or an open API that makes it much easier to integrate with other software.

Don’t forget to make sure the integrations are seamless. Some may require a manual transfer, while you'll probably want automatic integration.

People HR software has hundreds of integrations designed to help your business run smoothly.

5.How much will our personnel needs develop in the coming years?

Your business is likely to be constantly growing, and that means there's a good chance that at some point you'll need new features from your HR software that you haven't thought of yet. Most HR software providers want to be flexible and give you the ability to expand the software as needed.

When choosing your HR software, consider your company's needs for the next 1 to 5 years, not just the immediate future.

This may require features/changes in the following areas:

• Number of users of the system
• Access from different devices
• Access to a predominantly hybrid / decentralized workforce
• Global access / multi-currency functionality
• Digital tracking or performance management
• Advanced automation/workflows
• Improved employee engagement tools

You may not need all of these features immediately, but it's worth thinking about what your business might need in the future and whether the HR software you're considering can provide this, and at what cost.

Cost estimates based on your features list may appear competitive, but may hide some of the costs further down the line.

Make sure you have a simple pricing structure that shows what is included and at what price so you have a good idea of what additional features would hit your budget. If you know what costs you might incur in the future, you can choose the best HR software.

6.What should we expect for our customer service and HR software implementation?

Choosing HR software and then not being able to implement it is a costly mistake. Likewise, a faulty system without proper customer support can result in one becoming indifferent to the system or having to purchase it again and start the entire process all over again.

Always check what the provider can offer.

Questions to ask the customer service of an HR software provider:

• How long are your customer relationships on average?
• How many support staff do you have?
• How do customers reach you for support?
• What problems do customers most often contact support with?
• How long does it take on average to solve a ticket?
• Can we talk to some of your current customers?
• What type of training do you offer for new users?

Implementation questions for HR software providers:

• How long does it take to implement your software?
• What kind of support do you offer during implementation?
• Do we need to make any changes to our current infrastructure?
• What kind of support can we expect once the implementation is complete?

People HR has a four-step implementation process that leaves you in the dark about how long it will take to get your new HR software up and running.

7.Have we reviewed and weighed up different HR software, as we should?

The final decision for HR software is best made after thorough research, pre-selection and testing.

Research

When you start looking for HR software, our top tip is to involve as many stakeholders from different departments as possible. This will give you a better understanding of your company's needs and ensure that everyone involved is on board with the final decision. Make sure to include actual users and employees from all areas to get a feel for what is really important to them.

These questions can help you choose HR software:

• What are the most important features you expect from HR software?
• What is your budget for HR software?
• How, when and where should the software be used in your company?
• What kind of integrations do you need?
• What kind of support do you need during and after implementation and have you planned for it?
• What kind of ongoing customer support do you need after go-live?

Then find providers that meet these requirements. You may not have all the details yet, but you will have a good list of providers, probably through an initial web search or recommendations, which you can then further refine.

Be shortlisted

Once you've narrowed down your options, you can start comparing them. Be sure to compare all the features you need and try to look at each provider objectively and go into detail. It can be very helpful to use a template for this and ensure that the comparisons are made by the same people within your company.

We recommend that you request demos from all providers on your shortlist. This gives you the opportunity to see the software in action and ask any questions you have.

You might also be interested in:

• Case studies
• Testimonials
• Videos of the product in action

You may also need to answer specific questions. You may want to create your own questionnaire to send to the provider.

Testing

Finally, if available, we recommend that you use a trial version so that you can get to know the software before making a final decision by performing a full test. Try to ensure that the software is tested by a variety of people over the same period of time so that you know exactly what each provider has to offer.

Once you've considered all of these factors, you'll be well on your way to choosing the right HR software for your business! Remember to take your time, research, and ask lots of questions. The right HR software can make a big difference for so many departments, so this is not a decision you should take lightly.

Next Steps

There are many factors that go into choosing the right HR software, but these are just a few of the most important:

• The needs of your business - whether they are simple or complex
• Ease of use - how easy is it for employees to use the software on a daily basis?
• Integration options - what other programs can the software be integrated with?
• Ease of use - including a simple implementation process
• Reporting tools
• Ongoing support
• budget

When choosing HR software, it's important to consider many different providers to find the right solution for your business. We've written a great guide to help you analyze the different HR software packages available.

Selecting the right HR software demands a strategic approach, considering departmental needs, essential functions, costs, integrations, future growth, customer service, and thorough evaluation. IceHrm emerges as a comprehensive solution, addressing diverse HR aspects with customizable features, intuitive interfaces, seamless integrations, and excellent customer support, ensuring an informed and effective decision-making process.