| If you have read any articles on selecting an HRIS, | | | | of needs hundreds, if not thousands, of times before. |
| HRMS or HR software programs, they all say you first | | | | So it's not surprising that almost all of them offer these |
| have to determine your needs. The phrase is used so | | | | exact capabilities. Some meet each need easier or in |
| often it's almost a cliché. I am not saying that people | | | | greater detail but on the surface they meet all of |
| who say this are wrong; far from it. I am just amazed | | | | these capabilities. Your list of sixty HRIS vendors is still |
| at how little depth is behind the words. Determining | | | | pretty much at sixty vendors. |
| your needs for a human resource program is | | | | Going to an HR software vendor with the list above is |
| extremely important and it's no easy task. In order to | | | | sort of like going to a car dealership and saying you |
| find a system matching your needs, you need to be as | | | | want a car with an engine, seats, four tires, and that |
| detailed as possible with creating them. The better the | | | | runs on gas. They all do it. |
| job you do on this step of the process, the more | | | | So how do we narrow down the list? |
| successful you will be with your final decision. | | | | Step One - Determine if you are looking for hosted |
| Why is determining needs so important for HR | | | | HRIS solutions or in-house HRIS programs. Actually, |
| Software? | | | | under hosted HRIS there are really two options, |
| In my research, there are over 60 US or Canada | | | | subscription and hosted HRIS. |
| based companies that offer an HRIS, or HRMS | | | | Subscription Service solutions (also referred to SaaS |
| software application. If we include human resource | | | | or PEPM) are sometimes referred to as multi-tenanted, |
| outsourcing and service bureau companies in this list, | | | | as many companies share a system that has been |
| you might very well be talking about over two or three | | | | configured for general use. The software and the data |
| hundred companies. Your job with determining your | | | | reside on servers in a secure facility, managed by the |
| needs, as I see it, is to narrow this list from several | | | | Vendor, where you access it from a Web browser. |
| hundred companies to a handful and then, following | | | | These solutions do not require IT support on your part. |
| your evaluations and research, find the system that | | | | They usually require a set-up fee and you typically |
| offers the closest match to your needs, requirements | | | | subscribe to this service on a month-to-month basis |
| and budget. When you look at "determining your | | | | based on your employee population for a minimum |
| needs" in this way, it sure sounds like more than a | | | | term. |
| simple cliché. | | | | Licensed/Purchased solutions are sometimes referred |
| As someone who has sold HR software for more | | | | to as In-House or On-Premise solutions. You pay a |
| than fifteen years, my first meeting with a prospect | | | | one-time license fee and your IT department installs |
| was to determine what their needs were for an HRIS | | | | and maintains the solution on your hardware using your |
| application. Most had something written down but | | | | network. Licensed software is configured to your |
| rarely provided enough detail. Following, is a typical | | | | particular needs. There are implementation fees to set |
| needs list from one of my customers. | | | | up the software. Ongoing annual Support fees are a |
| Looking for an In house or hosted HRIS application | | | | percentage of the original license cost. |
| that meets the following needs: | | | | Licensed/Hosted solutions are the same as Licensed |
| 1. Tie to our outsourced payroll application | | | | Purchased with the software being configured to your |
| 2. Windows based | | | | particular needs. The difference is, however, the |
| 3. Easy to use | | | | Vendor hosts your software in its secure facility and |
| 4. Salary History | | | | provides the back office IT support. There are still |
| 5. Track dates for review, birthdays, and anniversaries | | | | implementation and Support fees. There is usually no |
| 6. Salary Grade Analysis | | | | minimum term as you own a license. |
| 7. Benefits information | | | | Step Two - How much money do you have to |
| 8. Custom fields or custom screen options | | | | spend? HR systems vary widely in price. You need to |
| 9. Affirmative action tracking | | | | determine how much budget money you have to |
| 10. Track training information | | | | spend before arriving at your short list of vendors to |
| 11. Employee Self Service Option | | | | review. You will waste your time if you have People |
| 12. Easy to use report writing with the following | | | | Soft needs on a Microsoft Excel budget. |
| standard reports: | | | | Determining how much you can spend is, not |
| " Turn over reports | | | | surprisingly, a little tricky. With the hosted or subscription |
| " Birthday reports | | | | vendors you are going to spend less up front but so |
| " Anniversary Reports | | | | much per month or per payroll cycle. In this case, you |
| " New Hire Reports | | | | would need to find out how much you can spend per |
| " EEO Reports | | | | month or year. With a licensed in house application, |
| " OSHA compliance reports | | | | most of your investment will be up front but you will |
| Does this list look familiar? I am willing to bet that this | | | | have annual support costs going forward. Even with |
| list is very similar to your own. I'm going to let you in on | | | | licensed options, you can spread the payments over a |
| a little industry secret. All of the vendors who have | | | | period of time by leasing the software. |
| sold HR software systems have heard this exact list | | | | |