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Important Things to Know Before Choosing an HR Software Company

Jenna Vasquez
Jenna Vasquez | Contributor

There is no one-size-fits-all HR software solution. In order to find the best solution for your company, you will need to consider multiple aspects including specific pain points you’re struggling with, as well as the size and future growth of your business. Finding the right HR software can take some time, but the results can positively impact your business goals.

Identify pain points

The first step in finding HR software is identifying the pain points you're experiencing. Keep in mind, these pain points are not just from an human resource management perspective, but from the perspective of the entire business. Taking time to properly identify the company's biggest HR problems will help you find long lasting solutions.

Include other stakeholders in the analysis of issues. Consider doing a root cause and/or SWOT analysis. Knowing why your company is experiencing these pain points will help you evaluate potential solutions. Some common pain points include the following:

  • Insufficient number of candidates
  • Ineffective candidate evaluation
  • Employee data tracking
  • Poor employee management software
  • Poor performance management
  • Compliance
  • Payroll management
  • Data entry

Evaluate current processes

While HR software can alleviate many problems, it can also create new ones. Before purchasing software, take a look at your current HR processes. Identify areas that can be simplified. Be aware that you may need to change processes in order to take full advantage of your new software’s capabilities. 

  • Shop around — There are many HR software solutions out there. Not all of them will work for your business. Finding the right solution will take some time, but it will be well worth the investment.
  • Compare HR software features to your pain pointsWhen comparing different solutions, evaluate how specific features will solve your pain points. This will make deciding between options easier. Don’t be distracted by flashy sales pitches. Each HR software company is going to highlight its strengths. Don’t fall in love with features you don’t need.
  • Keep your entire team in mind — you’re looking for a solution that will help the entire company, not just make your position easier. Don’t be afraid to talk to sales agents about your pain points. Ask how features will help solve them. 
  • Take advantage of demos — Demos are your opportunity to see how the software works and evaluate if it solves your problems. Be an active participant. Let the sales agent know what you want to see and don’t be afraid to ask questions. 
  • Ask about software integrations — Frequently, you can integrate different software to better fit your needs. If one solution doesn’t solve specific problems you have, ask the sales agent what integrations are possible. This allows you to create a more customized solution for your business.

Plan for growth

You don’t want to purchase new HR software every year. Look for a solution that fits with your long-term strategy. Make sure the software solution you choose not only works with the business you are right now, but will also help you grow into the company you want to become.

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HR Software Frequently Asked Questions

How can HR software solve my company’s pain points?

HR is a unique combination of human problems with technical solutions. HR software can automate mundane tasks and processes that eat up valuable time that your staff needs to be spending on the strictly human aspects of HR. Additionally, it can automate reporting, allowing you to analyze data faster, identify issues earlier, and develop better solutions.

What if I chose the wrong HR software?

There is no need to feel stuck with HR software that doesn’t work for you. If your HR software no longer works for your company for any reason, you can:

  • Evaluate what’s not working — If you don’t know what the problem is, you can’t fix it. Take a look at your processes and make note of where roadblocks, bottlenecks, and other issues are occurring. From there you can: 
  • Contact the company to receive more training — Sometimes you just don’t have the training you need to utilize the software’s full potential.
  • Check for software integrations — Many HR software platforms allow you to integrate with other software. If you’re having a specific problem, integrating a specific software with your current platform may be the perfect solution.
  • Check your contract — If you’re not happy with your current HR software, check the contract to see what cancellation fees exist. Sometimes it’s worth it to just cut ties and move on, sometimes it’s not.  
  • Start shopping around — Whether you can make a new purchase quickly or not, it never hurts to know what else is out there. Start researching other solutions and evaluating if they can solve your current frustrations. When you are ready to make a purchase, you’ll be that much more ahead. 

What are standard features included in HR software?

HR software can come with a variety of features. Some companies provide an all-in-one software solution while others focus on specific aspects, like payroll. However, the following features are the most commonly include:

  • Applicant Tracking Software (ATS) — Saves your company time and money while recruiting, keeps track of resumes, and helps you streamline the hiring process and select the best candidate.
  • Benefits Administration — Helps HR leaders manage all employee benefits on one integrated platform. This includes data and analytics tools that help HR make well-informed, strategic decisions.
  • Talent Management — Helps your company acquire new employees (recruiting and employee onboarding), helps those employees grow and progress while at your company, and assists with successful offboarding as well.
  • Employee Engagement — Offers surveys (often customizable) for management to send to employees. With the feedback, the HR department can improve the employee’s engagement in their jobs and identify areas for improvement.
  • Human Resources Business Process Outsourcing (HR BPO) — Business process outsourcing is when you contract a third-party service provider to complete a specific task for business.
  • Learning Management Software (LMS) — Hosts e-learning content, modules, or lessons, often for onboarding new employees, professional development, or retraining your workforce.
  • Payroll — Automates the process of calculating paychecks. This software will calculate taxes and other deductions. Payroll software often comes with some sort of time clock software to keep track of which hours employees worked.
  • Performance Management — Helps leadership understand and track employees’ productivity and performance. This then helps inform other aspects of Human Capital Management (HCM).
  • Self-Service Portal — A place where employees can log in and see or adjust their personal information in relation to the company. They can clock in, request time off, see information about their paycheck, view their benefits, and view trainings and other information about the company. This gives employees help with and access to many of their HR questions and frees up time for the HR staff.
  • Time Clock/Time Tracking Software — Saves time for your bookkeeper and dramatically reduces the likelihood of clerical errors. This kind of time and attendance software often includes features like allowing employees to clock in on an app from their phones, restricting clock-ins to certain geographic areas (ex: only clock in while at the office, or at the job site), or requesting time off.

What is the standard price of HR software?

Price of HR software depends on the size of your business and which features you want. Very few HR software companies list prices on their websites. You’ll need to contact individual companies in order to get a quote. On the low end, you should expect to pay $10 per employee per month.

Why should I trust Best Company’s HR software comparison?

Best Company is a completely independent review company. Our mission is to empower people to make the best decisions and connect confidently with companies that deserve their business. We have never guaranteed a company a specific ranking or score and we never will. We calculate scores and rankings using our proprietary “Best Rank” algorithm. Additionaly, we evaluate each company and create a unique profile detailing the strengths and weaknesses of its product offering(s). 

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