Finding the right HR software system for your requirements

Myhrtoolkit list five key aspects to consider when choosing HR software

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Myhrtoolkit list five key aspects to consider when choosing HR software

HR software is a great solution for getting more organised and effective when it comes to many aspects of staff management – but knowing which kind of system will be best for your organisation can be a challenge.

From simple, off-the-shelf solutions that are easy to implement and adopt, to more bespoke, modular systems that you can tailor more specifically to your organisation, there are plenty of options out there for organisations of all shapes and sizes.

One of the best ways to narrow your focus and find a system that works for you is to consider the structure of your organisation, how you currently do HR, and what you aim to improve. Here we have listed some of the aspects you should consider when looking to adopt an HR software system, to help you on your journey to find the best system for your organisation.

Five aspects of your organisation to consider when choosing HR software

Here are five key factors about your organisation to consider when it comes to finding the right HR software system for your requirements:

1. Organisation size

The number of employees you have may have an impact on the type of system you should choose. For instance, an organisation with five employees and one with 500 employees will likely have very different organisational structures and HR requirements.

There are definitely other factors to consider – but as a rule of thumb, the larger the organisation is, the more complex its HR processes will become. You should be looking for an HR software system that matches your organisational size and structure in terms of features and functionality.

2. Resources

Are you looking after your company’s HR function yourself, do you have someone in the team who looks after administration and HR activities, or do you have a dedicated HR team handling staff management for the organisation? In a similar vein – how savvy are your line managers with HR?

If you have little internal resource to give to implementing and maintaining an HR system, it’ll likely be better to go for a core HR system that helps you with your basic compliance and management tasks (such as sharing policy documents, managing holiday, tracking sickness absence, training, and so on). If, on the other hand, you have a dedicated HR team, a more bespoke and wide-ranging system may be well worth the investment.

3. Goals

What are your goals when it comes to improving your HR function? Are you looking to get your HR admin and compliance locked in, or are you looking at areas such as employee engagement and the more strategic aspects of HR? Again, this will have an impact on the relative simplicity or customisability of the system you want to implement.

This ties in nicely with considering your HR resources generally (such as dedicated staff or outsourced HR support), which you may also need to decide if you’re wanting to get more strategic with your HR management goals.

4. Budget

How much do you have available to spend on an HR software system? There are a range of systems out there to suit a range of budgets – gone are the days where HR software was only available for large, enterprise-level companies. Cloud-based solutions in particular have made it much easier for SMEs to adopt such systems, with off-the-shelf solutions carrying very reasonable price tags.

If you have more budget available to invest in a bespoke system and require further levels of customisation for a bigger or more complex team, it could be worth investing in this even if you haven’t had an HR software system before – initially it will cost more, but will be worth the investment if this is what your organisation requires to manage staff more efficiently and strategically.

5. Timeline

The more complex the system, the more time it will take to implement it properly and get everyone trained to use it. As with budget, this is all about weighing up initial investment versus the organisation’s long-term goals and requirements.

You wouldn’t want to implement a less costly, core HR software system if only a few months down the road you realise you need something more bespoke, wasting time on implementation and training. Conversely, neither would you want to invest in a complex and more expensive system that your team won’t actually use effectively long-term. It’s all about getting that balance right!

For some organisations (particularly SMEs), a core HR software system with a fixed range of modules will be the perfect fit and ideal for their budget. For organisations that require more bespoke functionality and more integration options, investing in a more complex HR platform may be the way forward. The best strategy is to audit how you do HR, map out what you want to achieve, and find the system that will help you with those goals.

Camille Brouard is Senior Marketing Executive for myhrtoolkit, a HR software system designed for SMEs that streamlines day to day HR functions with easy-to-use staff management tools.