Open source HRMS: a complete buyers' guide
With any software that must meet your business needs, the question of customization arises - “can it do X’ No? Then can it be adjust to do X?”
Maybe your customization needs go no further than renaming a few text or data input fields and pasting your corporate logo and colors onto the homepage. At the other end of the customization spectrum is the ability to dig beneath the surface and change the actual code. And that’s the opportunity that open source HRMS offers.
If you’re tempted by that kind of freedom or simply interested in the idea of open source software, the following guide covers the key issues, including:
- What is open source HRMS and who should consider it?
- The pros and cons of open source HRMS vs. proprietary systems
- How much does open source HRMS cost?
- Which open source HRMS solutions should I consider?
“Open source” is simply software for which the license includes access to the source code, including the right to change that code to suit the user. In a sense, this is the ultimate in modification and customization, without the usual restrictions associated with so-called “proprietary” software packages.
Well-known and well-established open source applications include the Firefox web browser, the Apache server software, and the Linux operating system. Given its flexibility and relative freedom from restrictions, no wonder that open source versions of all types of business software have also been developed, including HR systems.
You may wish to explore open source HRMS options if:
- You have specific process and/or technology needs that standard systems cannot meet without significant customization at the coding level.
- On principle, you believe that software should be open to being changed and modified freely.
- Your budget is limited (most open source vendors offer a free HRMS, though not all open source is free – more details on that point below…).
- You have in-house software developers, are tech-savvy yourself, and/or you just like to code.
One caveat to be aware of… while a key benefit of open source HRMS is the freedom to change it, any changes are subject to the license, usually meaning that those changes are themselves ‘open’ and available to anyone who wants them. There are fine legal lines here that bear checking out, especially if you’re integrating modified open source HRMS with your own in-house software, effectively creating a single system. If this is a concern for you, a good source of further information to start with is the Open Source Initiative’s FAQs page.
|Open Source HRMS||Proprietary HRMS|
Is free really free?
Upfront, the answer is yes. For example, with open source suppliers like OrangeHRM, you just download and go. No money changes hands. However, as and when your business needs change – perhaps due to significant expansion, or a strategy of increased HR automation – you may find those needs quickly outstripping the free software’s capabilities. It’s entirely possible that you find there would have been less pain (including financial) if you’d gone for a more scalable proprietary system in the first place.
Furthermore, even a free system may carry some hidden costs within its TCO (Total Cost of Ownership), such as:
- Installation – whether you install and setup yourself or contract the supplier or an independent consultant to do it for you, there’s a cost (though the latter option will probably be more expensive in actual money terms).
- Support – so far, open source HRMS companies are mainly focused on small to medium businesses and so do not have large dedicated support teams, and what support they do offer may not be included in the ‘free’ license, instead being a paid extra service.
- Advanced features – as mentioned above, the basics may be free but more sophisticated open source HRMS functions, if they exist at all, are likely to be paid for (the code may be freely accessible but that doesn’t always mean it is free in currency terms).
- Training – many open source suppliers are smaller companies and as such put their resources into development; creating training documentation (or documentation of any kind, for that matter) may be a secondary concern. As well as the cost of staff time spent undergoing user training, you may have to invest in designing training guides and materials.
Though your business requirements will, of course, determine which suppliers are best for you, the following is a short list of the more established open source HRMS options:
- OrangeHRM – probably the longest-running open source free HRMS with ‘pay-for’ Professional and Enterprise options too.
- Sentrifugo – catering for organizations of up to 1,000 employees, Sentrifugo is a clear exception to the ‘limited functionality’ label often attached to open source HRMS with less basic features including performance management, background checks, interview scheduling, talent acquisition and even analytics.
- Open Baraza HCM – another option that goes beyond the basics functionality, offering talent management as well.
- iceHRM – as with OrangeHRM, three versions – free, Pro and Enterprise – all with full access to the source code.
- Odoo – not only an HRMS, Odoo is an open source suite of business systems, including ERP, CRM, project management, and an HRMS module or app.
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