| This HRIS Software or HRMS software selection | | | | 4. How much can you spend? |
| advice is based on my experience of more than 15 | | | | Now that you have improved your HRIS knowledge |
| years within the HR software industry. I have seen | | | | and you have a detailed list of your needs, you need |
| hundreds, if not thousands, of companies during that | | | | to determine how much you can spend before |
| time do a good job and unfortunately, many who did a | | | | deciding which applications you want to evaluate. |
| poor job with this process. You certainly don't want to | | | | How much you can spend can be a little tricky |
| go through the process a year or two down the road | | | | because of the various pricing options vendors offer. |
| again because you ended up making the wrong | | | | Hosted solutions will offer their applications at so much |
| selection. That type of thing is what's called a career | | | | per employee per month. The advantage is that over |
| limiting move. | | | | the short term, your up front investment is going to be |
| Ten step plan for HRIS Software Selection | | | | far lower with these applications than purchasing an |
| 1. Improve your HRIS software knowledge | | | | application, where the investment is largely made on |
| 2. Determine your Needs | | | | the front end. Even with purchase options, you might |
| 3. Create a detailed HRIS software needs and | | | | look at a lease to own contract where you pay for |
| requirements spreadsheet | | | | the software over a five year time frame and you |
| 4. How much can you spend? | | | | own it at the end of the contract. |
| 5. Pick a handful of HRIS software systems to | | | | 5. Pick a handful of systems to evaluate |
| evaluate | | | | The first thing to do is find the short list that seems to |
| 6. Demo advice | | | | meet your needs. Perform a few searches and you |
| 7. Research the short list | | | | will find a hand full of sites that list a number of HRIS |
| 8. Determine the implementation scope | | | | systems on their sites. Some even offer the capability |
| 9. Make the decision | | | | of filtering the products by options or features. |
| 10. Getting approval | | | | The hard part is figuring out which systems not only |
| 1. Improve your HRIS software Knowledge | | | | meet your needs but also match your budget. In a |
| Before you can determine your needs, budget, or | | | | perfect world, buying HRIS software would be like |
| anything, you have to understand what the overall | | | | buying a car. With a car you can go to a web site, |
| capabilities, features, and options are of the various | | | | type the kind of car you want, the price range, and |
| HRIS software applications. There are a number of | | | | you get a list. This is, unfortunately, not the case with |
| ways you can educate yourself on these capabilities. | | | | HRIS software. The less expensive systems will gladly |
| One is to look up articles, such as this one. There are | | | | provide their prices. The more expensive systems are, |
| tremendous online resources and articles created on | | | | in general, going to expect you to run through the |
| this exact subject. There are also a number of sites | | | | whole dog and pony show before providing the prices. |
| that show a number of HRIS software applications | | | | The sales people for those companies, while they |
| and provide helpful information for your education, as | | | | might not offer the prices up front if you call and tell |
| well. | | | | them what your max budget is, will at least tell you if |
| 2. Determine your needs | | | | that is possible or not. At the end of this process, you |
| Everything you read about buying HRIS software is | | | | should have your list scaled down to four or five |
| going to say exactly the same thing. Telling you to | | | | systems of which you will want to see a demo. |
| determine your needs is nothing new. The concept is | | | | 6. Demo advice |
| used so often it is almost considered a cliché. The | | | | With each demo, have your spreadsheet in hand and |
| point of this section is to tell you what this statement | | | | make sure that each need or requirement you have |
| means and why this step is extremely important when | | | | identified is shown during the demo. With your score |
| starting your search for HRIS software. | | | | spreadsheet in hand, provide a score for each need. |
| There are currently hundreds, if not thousands, of HR | | | | This step is actually pretty easy because you did your |
| software providers doing business in North America. | | | | homework up front. |
| There are numerous vendors who list themselves as | | | | 7. Research the short list |
| either an HRIS vendor or as an HRMS vendor. There | | | | After reviewing the four or five products, you will likely |
| might be as many as 100 of these companies. When | | | | cut this list in half. From here, do a little research on |
| creating your needs and requirements for either HRIS | | | | each company. Ask for references, see how long the |
| Software or HRMS software, you need to think of | | | | company has been in business, and how many installs |
| your job as narrowing this list from 100 vendors down | | | | they have. To receive unbiased opinions, hit the SHRM |
| to 10 or fewer. | | | | technology boards and post a message asking if |
| I have reviewed a large number of these HRIS | | | | anyone else has used the product and see what their |
| systems. In my opinion, these vendors offer 60% of | | | | opinion is. Add scores, the prices, years in business, |
| the same functionality. So if you approach 100 of | | | | and the number of installs to your spreadsheet. |
| these companies and state that your requirements are | | | | 8. Determine the implementation scope |
| to have a system that tracks job history, performance | | | | You will know exactly what you are paying for the |
| review dates, birthday report, turnover reports and | | | | software, service and/support. Some companies may |
| other reporting capabilities most, if not all, of these | | | | fix cost the implementation costs. Others will provide |
| applications will show you the same capability. This | | | | an estimate of time to complete the work and training. |
| would be like looking for a house and telling the realtor | | | | In either case, if the scope of the project is not |
| that you need any number of bedrooms, any square | | | | determined in detail before the project begins, this is |
| footage, and in any neighbor hood. | | | | where you are going to go over budget. Make sure |
| When creating your needs and requirements, look at it | | | | you receive an implementation quote that shows hours |
| from the perspective that if you were to design an | | | | for each phase of the project. Look it over and make |
| HRIS software application what would you include in | | | | sure that each of your needs is met with the process. |
| the software. Exactly what reports do you need, what | | | | 9. Make the decision |
| data do you need to track, how would you populate | | | | Looking over your spreadsheet is the easiest step in |
| the database fields, and would you need to interface | | | | the entire process. By now, you have likely narrowed |
| with any of your other software applications? | | | | your list to two or three systems and there is no |
| In this process of determining your needs and | | | | confusion because the best solution is scored the |
| requirements, make sure to also confer with other | | | | highest on your spreadsheet. Of course price, |
| departments who might end up utilizing portions of your | | | | references, and your company research will play a |
| HRIS product, as well. | | | | part, as well. Congratulations on a successful search! |
| 3. Create a detailed HRIS software needs and | | | | 10. Getting approval |
| requirements spreadsheet | | | | Sadly, many companies view HR as a cost center. As |
| You will likely look at a number of systems and, like | | | | a cost center, it can be difficult to get approval for a |
| looking for a house, eventually you are going to forget | | | | system that may benefit a single department. This is |
| which system did what and offered what advantages. | | | | part of the reason, under determining your needs, I |
| I recommend creating a detailed spreadsheet to assist | | | | recommended involving other departments. Determine |
| with this process. Down the left side, list your needs | | | | what the company objectives are and try to tie your |
| and across the top, list each vendor. If you want to | | | | case for HRIS software to these objectives. A |
| offer more detail, you might end up reviewing each | | | | system that benefits the entire organization makes a |
| HRIS application to score each product. | | | | stronger case for need. |