What is the most effective way to evaluate HR solutions for your organization's size?

The first step is to define your organization's specific HR needs and objectives. Conduct surveys and interviews to understand what challenges your team faces. According to Gartner, 44% of HR leaders lack confidence in their current HR technology. Defining your needs helps you identify gaps and areas for improvement, which is crucial in selecting a tailored HR solution.

In my experience, finding a new HR solution often takes longer than necessary because the list of requirements gets longer with every demo the team sees. I always find it helpful to answer this question: What is the problem you are trying to solve? The answer focuses on the immediate requirements. That does not mean you ignore the rest, but they become "nice to haves". Solutions come with so many features these days, that the average company probably only uses half of them. Also from an implementation and pricing perspective, it's better to focus on what you need, than to keep adding modules that you won't use.

Thoroughly research the HR solutions market to understand what options are available. Industry research firm Market Research Future predicts that the global HR software market will grow significantly in the coming years. Consider factors such as scalability, pricing, customer reviews, and the provider's track record. This step ensures you have a comprehensive understanding of the options available for your organization's size.

There are so many HR solutions on the market, that a search might give you a long list. How do you bring it down? Talk to other businesses in your industry and even better, see what your competitors are using. In my experience HR directors often talk openly with each other about these matters as they are not competitive intel. A recommendation from someone that runs HR at a similar company should count for a lot. And then do your own due diligence, because you are not the same.

When it comes to vendor demos, be very specific about what you want to see. A generic demo is great as an introduction, but you want to know if this solution is fit for the future in your company. Design between one and three scenarios, and ask the vendor to demonstrate these. I always find it super useful to see how vendors handle this question. You will immediately understand who really listens, and who tries to do their own thing while hinting at your scenarios. Besides giving you insights in the solution, it's a great way to determine who is a great vendor to work with.

Test and evaluate the shortlisted HR solutions in a real-world context. Look at how these solutions perform in addressing your specific needs. Collect data on efficiency, employee satisfaction, and any improvements in HR processes. This data-driven evaluation ensures that you're making a decision based on the actual outcomes you seek to achieve.

Once you have determined your requirements and your nice-to-haves, you should create a worksheet per vendor to score them: interactions, demo, response to your RFP (if you have one) and so on. It's best to define that early, so interactions with the vendor do not change weighing criteria. Be prepared for the fact that more than one company will take top place, or that two companies end up scoring too close to call. Instead of blindly following the scoring sheet, have a conversation with the HR team to understand their preferences. Solution contracts typically run a few years, so it's important to make a joint choice.

After comprehensive evaluation, make an informed decision. Involve key stakeholders in the decision-making process, as a study by the Aberdeen Group shows that companies with a high degree of involvement from stakeholders in the selection process have better outcomes. Ensure that the selected HR solution aligns with your organization's size and unique needs.

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Beyond the immediate HR needs, consider the long-term scalability and adaptability of the solution. Your organization may grow, and the HR solution should accommodate that growth. Moreover, ensure that the solution is user-friendly, as a study by Software Advice revealed that 63% of HR professionals consider user-friendliness as the most important factor in HR software selection. Training and support for employees using the new solution are also vital to ensure a smooth transition and ongoing success.