How to Choose a Suitable HR Software
Finding the right HR software for your business can be overwhelming. Our expert guide walks you through the process, from identifying your needs to comparing features and pricing, so you can choose the best HR software solution for your organization.
Choosing suitable HR software can be tricky at times. Most startups make the mistake of going for HR software that automates existing processes. Although that looks good, it is advised to use an HR system that suits the new and innovative technologies in the marketplace.
Some HR systems are specialised and cover certain phases of the employee lifecycle, while some are comprehensive and cover a large part of the HR processes. It just depends on what you want.
Let’s look at some of the features you should look at when choosing suitable HR software and selection tips.
What are the Features to Look Out For When Choosing HR Software
Below are some basic features you should look for when choosing HR software.
This does not debunk the fact that some HR systems can be specific.
1. Core HR
One of the reasons most startups buy their first HR software is to create an automated and paperless HR system. This has to do with critical aspects of the organisation, such as tracking the employee hours of work, managing the employee, benefits administration, record keeping and many more.
Your selected HR should stand as a technology where employees can quickly sign in when they come and leave. Also, your chosen HR is for specific functions; the core aspects cannot be neglected.
Payroll is an important feature, especially if you need the HR system to create tax documents and compliance requirements and integrate with core financials and accounting to create accurate records.
3. Benefits Administration
Managing standard employee benefits such as study savings, health insurance, life and disability insurance, and retirement plans can be cumbersome. If you are to create a spate wellness and health platform, it might be expensive. The best is to check whether HR comes with benefits administration tools where you can keep records and caudate the benefits.
Another prominent feature to look out for when choosing HR software is the Onboarding feature. The onboarding process can influence whether the employee will get retained or not.
So, will the software integrate with non-HR solutions to handle the onboarding process? For the HR software to handle the onboarding process, it must integrate with a time clock, IT and other systems required to prepare a new employee.
5. Compensation Management
Many startups use spreadsheets to showcase employee job titles and salaries as adjusted to the local market, but the problem is getting the data here. Buying data from an external provider can be expensive, and outdated salary databases can pose some difficulties when you want to use them to perform a compensation or performance review.
So you must determine whether the startups support specialised compensation methods and pose flexibility in switching from spreadsheets to calculate remuneration and merit raises.
6. Performance management
Manual performance management can be cumbersome as it will demand opening many record books and papers. One of the significant ways to save time for startups is to adopt an automated continuous performance management system.
So look for HR software that offers tools that simplifies performance management. Although automating these processes have its pros and cons. Ask the vendors to demonstrate their real-life use case, and you can assess whether it is suitable.
7. Recruiting and Integration with job boards
The process of sourcing the right employee can sometimes be tough on startups. Check out the HR software’s recruiting module and whether it integrates with popular job boards or some specific specialised ones.
For recruitment, features you should check out include email and SMS texting, natural processing language for assessing unstructured data such as email or text messages and the ability to assess the applicant profile and information in line with the needed features.
8. Video interviewing
Video interviewing is gradually replacing the in-person interview among early tech startups. Video interviewing requires webcams to host meetings and automated questions that can be sent to thousands of candidates to get answers in a consistent format and uses AI to analyse applicants.
For HR software to carry out video interviewing, it must contain the tools for detecting bias and creating automated transcription to search for keywords and skills your company needs.
9. Employee engagement
This is an essential feature to look out for if you are running tech startups where employees must constantly engage with one another. The HR software must contain collaborative tools where employees can view data and make inputs, updates and suggestions on ongoing projects. Tech startups that run hybrid work environments can benefit from employee management tools and features.
HR Software Selection Tips to Enable You to Choose Correctly
Below are some of the tips you should follow when choosing HR software after identifying the feature you require:
- Define your organisational needs: The first thing to do when selecting HR software is to define your organisation’s goals, needs and challenges.
- Consult an inclusive team. After defining the organisation’s needs, goals and challenges, the next thing is to pick representatives from HR, IT, procurement, finance and other departmental managers that will use the software.
- Identify your specific requirements. Why does your organisation need HR software? What is that pressing need? Is it a recruitment process or compliance with regulatory bodies? The requirement can be a business issue or a technological requirement.
- Identify and compare vendors: After specifying your requirements, identify vendors that offer software that can cover your expected needs. After identifying them, compare them regarding reputation, cost, integration, flexibility, running cost and expertise.
- Send a request for proposal (RFP) to your selected vendors. After comparing, you can select a few vendors. The next step is to send them an RFP containing information about your startup, project, needs, number of employees, timeline and nature of the startup.
- View demos: You can ask the vendor to build a demo on the actual use case of your organisation. The demo should be fully scripted to give you complete information on what you need. Also, you can ask for reference customers, whom you can ask questions. Additionally, you can go online and read reviews on them. After this, you can now make your selection.