Has your HRMS provider gone out of business? Here's what to do

An HRMS provider going out of business is rare but it does happen. How do you pick up the pieces if your provider closes its doors? Here are four areas where you should take action quickly to mitigate damage if your HR software vendor stops trading.

1. Review your HRMS provider’s interactions and categorize dependency

Does your vendor host your HRMS in the cloud or are you responsible for the hardware and software? Do you regularly download patches and fixes from your provider?

If you did a one-time software installation that your own developers modify when needed you’ll be less impacted. When is the last time you called your vendor with a support question? Do you log software bugs with your vendor to address? The greater your reliance on your provider the more risk and potential damage control that you will need to address. The first step is to understand your HRMS landscape and your vendor dependency.

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2. Download and catalog documentation

When an HRMS provider ceases operations time is of the essence in gathering documentation. Many vendors host configuration guides on their own websites. Do you have local copies of your application installation? As a provider may be in a hurry to close up shop it is a priority action to gather as much of their documentation as you can to support your future functionality releases and updates.

3. Determine access to your own data

This step is something that you will need to do if you’re ever planning to convert to another system. If your vendor is ceasing operations this step should happen now. After you’ve determined the location of your data you need to figure out who can access it. Is your HRMS built on proprietary or legacy code? Now is the time to network with your vendor contacts and to connect with their support team so that you have a list of possible HRMS consultants for future conversions.

4. Avoid quick decisions

While an HRMS provider going out of business can be disruptive to your HR operations, it isn’t the end of the world. You may need to choose a new HRMS sooner than planned. It’s important not to rush the decision. Sometimes a vendor going out of business can be a blessing in disguise. Get your documentation and contingency plans in order but if there is n

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Heather Batyski

About the author…

Heather is an experienced HRMS analyst, consultant and manager. Having worked for companies such as Deloitte, Franklin Templeton and Oracle, Heather has first-hand experience of many HRMS solutions including Peoplesoft and Workday.

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Heather Batyski