Citation
Moore, R. (2013), "Choosing HR software", Strategic HR Review, Vol. 12 No. 3. https://doi.org/10.1108/shr.2013.37212caa.005
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited
Choosing HR software
Article Type: e-HR From: Strategic HR Review, Volume 12, Issue 3
How technology is changing the way HR works
Roger MooreBased at Bond Teamspirit.
The task of selecting a HR software solution that will be lean and fit for purpose will vary greatly depending on company requirements. Following are guidelines for successful selection.
Remove the blinkers
The purpose of technology is to bring change for the better, not change for the sake of it, yet many HR departments select a product that is more complicated than necessary, meaning the majority of the functionality that has been paid for remains dormant. This often occurs because those involved in the decision-making process have not looked at software in the wider context.
Many HR departments are still heavily reliant on manual systems, and by automating tasks administration is reduced and HR teams are free to do more value added and strategic work. Cost-savings come not just from streamlined processes but by using the software to address specific issues in the business.
These benefits will only be realized, however, if organizations go through a rigorous software selection process and establish specific criteria on which to base purchasing decisions.
Bring the team together
The starting point in the research process is appointing a project team that includes HR and IT and also takes into account board-level sponsorship and support. A robust business case must be made for the software; the best way to do this is to show how it can positively impact the bottom line. Feedback should be gathered from all necessary parties during implementation. Having put together a business case, the definition of software requirements must be tightly based on this.
Future-proof the project
In addition to ensuring that the right features and functionality are specified, it is imperative that the software is flexible and configurable to grow with business needs. Quiz vendors on product roadmaps and find out how many upgrades can be expected within a specific timeframe. Also ask about strategies for adapting software for regulatory and legislative changes.
Consider integration
Next, decide whether the HR software will be a standalone system or integrated with other systems such as payroll, time and attendance or recruitment software. Historically, organizations have tended to buy separate payroll and HR products. It makes far more sense, however, to run such systems from a single database. As well as saving time, eliminating the duplication of data entry reduces the margin for error and preserves data integrity.
Analyze the small print
Be clear on what features come as standard and what might incur additional costs. Similarly, research any upgrade costs or annual maintenance fees. Drill down on areas such as technical support and training to discover exactly what you will get for your investment.
Investigate a hosted approach
Taking a hosted or Cloud-based approach can make upgrading software and switching on future modules far easier and cheaper than the traditional client-server implementation and is a key consideration. Cloud and software-as-a-service (SaaS) reduce the need for expensive in-house servers and other hardware, and implementation is also simpler and faster.
Look at vendors’ track records
Having arrived at a shortlist of vendors whose products meet your requirements, ask to visit client reference sites. Come up with a thorough list of questions to ensure you get maximum value from the exercise and do not be too shocked or surprised if there have been problems – in such instances, it is more important to learn how the vendor overcame any problems as the nature of software implementation means there will inevitably be challenges.
Work in co-operation
Having reached a decision, the next stage is to work with the supplier to put together an implementation plan and build a team. Key questions for the project team include: is it necessary to pilot the system first or run the new system in parallel with the old one? What extra workload will be involved for those operating it and how much time do you need to build in for system training? Keep in mind that your HR team may already be working to capacity so it might be necessary to second people or recruit temporary staff for a period before and after the system goes live.
Getting it right
HR software – when chosen and installed correctly – has the power to transform and elevate the HR function and help it align its activity more closely to the wider aims of the business. It can only be achieved, though, if the right criteria are used to select it in the first place and those involved in the process make informed business decisions.
About the author
Roger Moore is general manager at Bond Teamspirit and has over 20 years’ experience in the business industry. Before joining Bond Teamspirit, he worked in senior managerial roles – most of which have been at executive director level. Having held positions at Equant and Granada Computer Services (now Hewlett Packard), Moore has been responsible for managing the delivery of a variety of services to major corporations. He also worked for RCMS as COO and was instrumental in the design and implementation of HR solutions to major corporations including Citibank, Nokia and GlaxoSmithKline. Roger Moore can be contacted at: rmoore@bondteamspirit.com