How to Compare HR Software

How To Compare HR Software

 Let’s face it, no one likes getting new software. It’s about as welcome as a visit to the dentist. That is, until you have a horrible toothache, and you’ll do anything to get that emergency appointment in the diary! So, let’s say you have hit that proverbial brick wall and you need to bite the software bullet. Where do you start?

 This how to guide will give you some insight into how to go about comparing the HR software on the market. Specifically, you will be reviewing:

• Price
• Functionality
• Flexibility
• Scalability
• Secret Sauce

Price

 As a general rule of thumb, you can expect to pay about £4 per employee per month for a decent HR software. That’s about £4,800 per annum. Most good software retail at this price or similar. Software which is cheaper might not be as functionally rich. Software more expensive might be reserved for the global multinationals (probably not you, right?).

 However, one software vendor’s £4 per employee per month might give you 50% of the functionality of another’s £4p/m. That is why it is a dangerous game to qualify software in or out based upon budget alone. Companies who do this might be missing out on more functionally rich software or even essential functionality.

 That’s not to say you shouldn’t set a budget. Understand what your desirable price is and be prepared to stretch it for the right product. It might be that you simply cannot afford the software of your dreams (not uncommon) in which case, look for something with scalability (more on that later).

Functionality

 In order to determine whether your software is worth the £x per employee per month you have earmarked to pay, you also need to have predetermined your required functionality [read: “what do you really need].

 An easier way to ascertain this might be to consider what’s causing you problems? Why do you have the proverbial toothache in the first place? For some companies, they are seeking more automation. For others it’s to reduce manual effort and duplicated information. Some are fed up with all the errors their systems are creating. But these aren’t your specific problems. Put it this way, you can take it as a given that ALL HR software will automate your processes and remove duplication of effort. So, what is it that is really bother you?

 Consider these real life (anonymised) examples from some of the people I speak to during the sales process.

 “When someone submits an absence request by email, if I read it and don’t action it immediately it often goes forgotten about, assumed authorised, and is never tracked fully” – Global HR Director Finance Company

 “I don’t have any sense of my retention rate. My boss is always asking and I simply don’t know what to say because all the information is stuck in spreadsheets” – People Manager, Not for Profit

 “I have no way of knowing if the person has submitted their bank account details incorrectly… until they complain their pay hasn’t been processed. Then there’s the long battle over who input the data wrong in the first place” Payroll Administrator, Construction Company

 “I’d much rather be spending my time doing things that make a difference to the people…… not spending four hours on a report I should just be able to press a button to generate” – HR Manager, Medical Devices Company

 These are all your real issues. Figure out what it is that is driving your business towards the inevitable and ensure that the software you are reviewing can absolutely nail your issues. If it can’t, cross it off your list.

Flexibility

 An over used word in the world of software. What does flexibility actually mean?

• Can you create your own reports?
• Can you lock and unlock functionality based on permissions/role?
• Can the user numbers flex downwards as well as upwards (to consider staff retraction rather than growth)?
• Can you use your software just as easily from home as in the office?
• If there’s a major legislative change in my sector/country, can the software be adapted to meet the new requirements?
• How do you get your hands on updates/new releases?

 These are the types of questions you should be asking of your software vendor to ensure you are not going to be stuck with a new software which version locks you, mandates working from a single location (server based) or requires the skill of a coder to get something additional from your system as your needs incrementally change.

 Cloud based software should enable you to access from any location with 4G or WiFi, should always upgrading you at the point of new release and should never be so complex you are unable to write your own reports.

Scalability

 Cloud software is also a good option if you are looking for a software that grows with your needs. If you cannot afford your dream software at this point, start by selecting a vendor that can meet your mission critical requirements now, but which can also offer you more functionality down the line if your business grows or your needs change or your budget increases.

 Also, making sure your software handles every business function, and not just HR, makes sense too. Putting all your processes into a single ERP system will make scaling even easier further down the line.

 NetSuite is considered one of the world’s top ERP solutions for small to medium sized businesses. It can handle your finance and, with SuiteApps like HR for NetSuite can also handle your HR. Both are modular which means you can take the parts you need when you need them and unlock the rest later if required. It’s the software equivalent of a buffet!

Secret Sauce

 This one is hard to quantify but what you should effectively look for is chemistry. Chemistry between you and the software, and chemistry between you and the vendor/implementation partner.

 It’s OK to not like the user interface when you first see it. It’s even OK to feel about “meh” about it after the third time you see it. Afterall, moving to a new system takes a lot of getting used to. But if you absolutely hate the UI, it’s probably a no go. (Just make sure to ask yourself if you are deliberately sabotaging the chemistry because secretly you just don’t want to have to change! This happens more often than you think).

You also need to be able to work with the implementation partner. If you think the software is absolutely terrific but you just cannot connect with the vendor, then it’s unlikely to be a successful implementation; leaving you to wonder if you got the software wrong too.

 During the demonstration process, here’s some things to look out for in a partner include:

• A desire to want to speak with you before going into demo. Good partners will not want to sell at any cost. If the software isn’t right for you, they want to let you know as soon as possible to release your time for other vendors. It won’t be possible for them to do this without a conversation about your needs. Similarly, a good partner will want to tailor a demonstration to your needs instead of showing you things which are not applicable (a waste of everyone’s time)
• Listening to you. A good partner will make an effort to really understand your problems. They will ask lots of questions and crucially, they will listen to your response.
• Showing you what you need. A good partner will use the above conversations to only show you the things which are applicable to your business/sector/country. They will not want to waste your time showing you things which (although might be pretty cool) won’t serve you in the long term.
• Being honest with you. A good partner will be honest with you. That includes telling you what the software isn’t so good at, as well as what it is good at. It includes being honest about the price and the implementation time frame. A good vendor will have no interest in leading you up the garden path on any of these issues, just to make a quick sale.

If you are interested in taking your HR to a new level, why not talk to us about NetSuite and HR for NetSuite?  Get in touch now to find out how next level software can impact on your business.

Written by Emma Stewart – who isn’t afraid to regularly visit the dentist and who can help you get smart new software (also Sales & Marketing Director at CloudTamers Ltd)