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5 Tips for Choosing The Right HR Software

HR software is integral to your business, choose the right one

HR software can be a significant investment for many businesses, but it can also pay off in the long run by allowing your HR department to function with ease. Automated features and organized layouts will help keep your information in order and up to date, and allow you more time to run your business without getting caught up in paperwork.

Before choosing the best software for your business, consider these 5 tips.

Related: Already did your research? Purchase your HR software now

Do Your Research

HR software can include an extensive list of features, and it may be difficult to distinguish which are basic and which are just extras. Be sure to look for these features when shopping for software:

  • Benefits, attendance and compensation tracking, and integrated payroll processing.
  • Applicant tracking and management, COBRA support, notification and enrollment.
  • Industry-standard technology, the ability to customize to fit your needs, and scalability to promote company growth.

Assess You Needs

Though you may want to take advantage of all of the latest HR software features, sometimes having complex software doesn’t accurately fit your business’s needs.

In order to find software that is a good fit, you should have a thorough understanding of how your business is expected to use it, and more importantly, how it won’t be using it.

  • Create a formal list of required features. It should be relatively short and prioritized by order of importance.
  • What can you afford? The cost of HR software can vary, but expect to spend a couple thousand dollars on good quality software.
  • Be sure to weigh legal implications and benefits of payroll integration. Both of these features can help you avoid error that could leave you in a messy situation if overlooked.

Consider Implementation Time

Like any other kind of office addition, you should also consider the time and resources required to implement your new HR software.

  • If your system includes less customization, it will likely take less time to implement.
  • Integration may require you to hire a consultant to assist you.
  • Consider time for employee training, and consult your employees about its difficulty before making a decision.

Test Different Kinds of Software

This is one of the most important tips to keep in mind when shopping for HR software. Many companies will offer trials, so keep your list of required features on hand and see which can do what best.

  • Meet with your team to discuss strengths and weaknesses of each software solution you demo.
  • Ask a lot of questions during the demonstration, and be as specific as possible.
  • Don’t be easily fooled by impressive graphics or a showy demonstration. The most creative features aren’t necessarily the ones your company needs.

Check References

If you don’t check previous customer references, you may be signing yourself up for a software headache. If the software company ends up providing bad customer assistance, it could leave you in a tough situation. Be sure to call reseller references and ask them about their experience with the system, and take into account their tone of voice or any points of hesitation.


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