Purchasing A New HR System?

There is a lot of software and platform options available for companies everywhere, ranging from niche departments to a “one stop shop” for the whole company.

You have solutions that are specific for particular problems, and others that encompass multiple issues. When it comes to searching for the right HR system for your company, it can be downright overwhelming.

To add confusion to the mix, they may throw an awful lot of technical jargon that is simply over your head.

Companies that sell these solutions are sometimes hoping that you’ll just toss your hands up in defeat and go with their product, whether it is the right fit for your company or not.

Choosing an incorrect product can lead to major headaches. Not only will your company more than likely want to stick with it to push for a return on investment (ROI), but if it doesn’t even solve your most complex, but also most common issues, it’s not even really worth it.

This can also lead to pressure from management for you to “make it right”, when there may not be much you can do after it’s purchased or installed.

In order to prevent yourself from rushing through to pick the first solution that comes along, it’s imperative to do your research on the options that are out there.

• If getting a new system is the goal for next year, start looking now to get an idea so you can have plenty of time for reviewing each product and evaluate whether it’s the right one for you.

• If this is a surprise purchase, and your company wants a fast turnaround, push back and insist on having an appropriate amount of time to vet a solution.

Make sure you not only have demos available, but see if you can get a “practice” org to explore the product with how it would work with your company.

Explore online to find documentation the company has, as well as customer reviews. Make sure you put it “through the ringer” before signing on the dotted line.

And if you don’t know where to start – we’ve got you covered.

Here are 5 Questions to consider before purchasing a new HR System.

How is data protected?

First and foremost, you should drill the sales rep on how customer data is protected. After all, you’ll be housing data that is protected by privacy and other consumer regulations and laws, and it’s imperative for you to do your homework to fully understand how the data is stored, protected, accessed, and used.

You will also need to fully understand what is encrypted, and what is not, as well as how other customers are using the product to remain compliant with GDPR.

Basically, drill the salesperson until you know this part just as much as they do.

What is our biggest need?

All too common, companies work backwards when choosing solutions. They have an idea in mind of their pain points, but get distracted by the ‘shiny’ parts that don’t really cause a major issue for them today.

They purchase the product and don’t really drill down into whether or not it addresses their biggest need.

Your second priority is to figure out if your biggest need is taken care of with the product you’re looking to purchase.

And, make sure they can demo for you how you can make sure your needs are actually met, instead of just telling you in a slideshow.

Is this a flexible solution?

Another consideration would be whether or not this is a flexible solution to grow with the needs of your HR department and company.

You need to make sure if you’re planning on integrating this with other software, that your solution has the capabilities to make that happen.

• Does it have an archaic interface?
• Was the last update done 3 years ago?

Make sure this has potential to expand, so that you’re not going to outgrow it in two more years.

Is it easy to use?

Think about your end users, here!

If it’s only People Operations that will be using the system, make sure you have a decent amount of users that can weigh in on concerns they may have on ease of use.

Better yet, see if you can access a trial version for actual hands-on time to learn. If your company will be using the software as well, make sure you have a variety of feedback.

Entering information as an HR employee may be a completely different experience than a customer support rep.

What is the cost?

• Make sure you also consider the cost. Is the number you’re looking at a full, all-inclusive number, or is it just for the initial setup?
• Will you have to purchase user licenses for each person that uses the system, and is that something you will want to limit to a few select people, or open up for the whole company?
• Also, are there any increases in cost after your initial contract date with a renewal clause?

You need to make sure the price won’t double after your first year, and you’re left defending how you accidentally went over budget.

You should spend a lot of time with the sales reps that are selling their products as your solutions.

Remember, you’re the one recommending this product or purchasing – it’s on you to make sure you do a great job exploring what is out there and coming to the right conclusion.

Planning ahead, taking your time, and staying persistent will help you breathe easy that you’ve made the right choice.

© Human Resources Global