How to Carefully Select an HR System That is Best Suited for Your Company


Although the HR systems refine companies’ data management systems to render workflow seamlessly, an unsuitable HR system can impoverish a company, thus, forcing them to sign out.

For instance, the Annual Pre-Employment Testing Benchmark Report mentions that only 55% of hiring professionals use the ATS (Applicant Tracking System) or HRIS. 19% are considering the use of either ATS or HRIS. 6% used either ATS or HRIS in the past but are not using it currently. 20% are not considering the use of either ATS or HRIS and they have used it in the past.

Following the report, we learn that 61% have experienced, but that 6% only used the HR system in the past to hire. Now, if 6% considered certain factors while selecting their hiring HRIS, they would have discovered suitable Digital HR systems and not exit the scheme.

So, what factors should you consider when selecting HRIS for your business?

Compare the Running Cost

First, you want to compare various HR systems vendors to get the best quote. Next, find out whether the vendor’s pricing plan is per user, and be sure you consider additional modules that may be introduced to the company.

Following a 2020 Software Path survey, $7,542 (£5,703) is the average budget of HRIS per user. So, the monthly running cost per user across all sizes of businesses is $125 (£94.51).

If you are okay with the vendor’s pricing policy, then you are good to go. Moreover, you must request the cost of upfront setup if the vendor does not reveal it.

What Your Company Needs

Before you delve into hiring HRIS services, you want to know where your company lags and what they need to develop. Of course, you must be knowledgeable of the available company resources and the missing management system.

Now, draft the goals you would expect the human resource information system to attain. If possible, categorize the requirements. For example, your category may include the aspects of the business that are not necessary, aspects that can be negotiated, and aspects that must be retained and improved immensely.

If the HR system provider can supply the categorized requirements without conflicting with the company, then the HR team should welcome the system.

Nature of System Support/Interface

If the HR department encounters a problem, how are they contacted? Are there materials available to guide the HR to troubleshoot and fix problems within a short time?

Typical modern HR systems arrive with an easy-to-use interface that almost anyone can configure or set up. Regardless, you may still get hooked, which distresses, especially when you must use the system to service customers, check employees, and keep up with trends; you need a system with a responsive support system.

Regarding the nature of support, consider whether the supplier provides room for suggestions/feedback for product development, how they communicate updates/security patches, and whether they have a collection of images, videos, and textual guides.

Cloud Integration and Security

A typical modern company operates with cloud technology and you need an HR system with cloud flexibility. The HR system should have the means to prove that their cloud-based services are commendable.

Although most HR software is cloud-based, you ought to be aware of the level of security.

For instance, after setting up the company files to be shared on the internet outside the business facility to connect employees and customers, hackers may hack the file cloud and pry into the employee and customer personal data.

If your company stores confidential information, not only is the data leaked, the company’s reputation diminishes.

If the HR systems you are hiring has a footprint indicating a breach some time ago, they may not be the best vendor for you.

Flexibility/Security of On-Premise Management Software

In this regard, we refer to the on-premise HR management system. The on-premise management software is the human resource solution installed on individual computers or servers that function within a set perimeter of the company.

The HR solution is accessible via various computers or the company network they are installed on. Though the on-premise management software is better-secure because it is limited to the company’s facility, hackers can intercept it, especially if it is a wireless system like WiFi.

To select a suitable HR system for your company, make sure the vendor can prove and guarantee on-premise flexibility and security. They should use highly encrypted WiFi systems that prevent hackers from reading the files.

Enhanced Record Keeping

To make better decisions and strategies properly, a company requires advanced tools to measure company performance data.

So, does the vendor provide a centralized repository for the master data of employees that the HRM will use to complete the core human resource processes? Good HRIS software should generate widened employee reports and provide ad hoc report capabilities.

A typical suitable HRIS will offer HR analytics on metrics such as turnover and headcount. It should also be capable of tracking every change including the employee data and update them appropriately.

The employee data could be visualized with charts or grids that describe trends to HR management easily.


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