How Do You Choose the Right Human Resource Management Software?

So you've decided to deploy an online human resource management software solution at your workplace? Good choice. HRM software and process automation can help you implement the best practices in human resource management and gain new ROI from existing business processes.


There's only one little problem, you say. I don't know how to choose the best solution for my business. Not surprising. After all, a simple Google search for online HR software can give you thousands of results with each service provider claiming that his solution is better than the rest and that it is exactly what you need. They are all right, of course. Their solution is the best from their perspective but is it the same from yours? Add recommendations from colleagues and friends and numerous solicited and unsolicited overtures from service providers to this and you are right where you began.
So, how does one choose the right human resource management software for their business? What are the parameters on which the software has to be judged? What are the different steps to be taken?
Create a selection team: First things first. Before we take about features, costs, or benefits, build a selection team that will assume responsibility for the operation. This selection team should be balanced and comprised of end users, senior management, and decision makers. Invite members from different functions like Finance, IT, and HR who have a stake in the decision. Give each of them a clear area of responsibility.
Evaluate and enumerate: The first responsibility of the selection team is to evaluate the current practices being followed by the company and come up with:

• Critical business requirements
• Expectations from the software
• Parameters for evaluation of the software

The team has to actively take inputs from all stakeholders at several stages in this process.
Get recommendations from multiple sources: As I mentioned earlier, there are thousands of solutions available in the market now. Ask for recommendations from as many people as you can. We've heard of a client who used a solution because his banker suggested him to do so. Another client got a recommendation from a new employee who was using the same solution in his previous company. Search online. Ask friends and business partners. Invite recommendations from employees. Cast the net wide and get a good list of requirements.
Shortlist and qualify: Now that you have your evaluation parameters and recommendations, weigh one against the other and create a shortlist. Check all recommendations against your parameters and come up with a shortlist of no more than 3-5 vendors.
Next step is to qualify them. Speak to the vendors. Ask as many questions as you need and clear all the doubts you have. Schedule a demo and invite estimates. At the end of this stage you shouldn't have more than 2 vendors on your shortlist.
Test them: Nowadays, almost all vendors offer a free trial for a limited time period. Take advantage of this to test the solution at your workplace. Ask users for their feedback.
Deploy: Based on the feedback, deploy the solution that you found to be the most suitable for your business needs.
Congratulations! You just found the right human resource management software for your business.