3 things you should know about an HRMS vendor before you select their system
Are you considering a new HRMS? The right HRMS vendor can form a collaborative relationship with you for years to come, helping you to achieve your strategic goals. A mismatched vendor can be a costly mistake, leading to loss of time and effort as well as budget. How much do you know about your vendor, and is it enough? Here are three top areas to consider as you research a new vendor.
1. What is the vendor’s track record?
Some vendors have been around for decades, while others are newer entrants using the latest technology and tools. For vendors that are well established in the HRMS space it is relevant to review their customer base and to assess customer turnover, as it is an indicator of satisfaction with their products.
Recommended Reading: HRMS Vendor Directory - Find the right HRMS vendor for your HR needs
Newer vendors may be more accommodating about customer requests as they attempt to build up their product and client list, but does their HRMS have everything you need out of the box, or is it a work in progress, with only the primary features ready and the extras under development?
2. How is pricing determined in the short and long term?
I recently worked with a company that had a small HRMS vendor with a robust product and competitive pricing, as the company had been an early adopter. During a divestiture of a part of their population, this vendor quoted a 2000% increase over what the company was currently paying. The difference was explained as a change in the licensing and fee structure from the original offering.
While a vendor cannot guarantee terms outside of what is written in the contract, it is helpful to gain references in this area to understand how flexible the vendor is to changes during the contract as well as future contract renewals.
3. What happens to my data when the contract ends?
Your HRMS holds a rich collection of strategically important data, from an employee’s sensitive and personal data to company-specific employee details that could provide competitive advantage to an outside reader. When a contract comes to an end and you decide to transition to a new vendor, how does the current HRMS vendor handle your data? In some instances it may feel like you are being held hostage if your data is not readily available or accessible in a large scale format without the payment of additional fees and costs to the vendor. It is useful to understand these arrangements before you enter into a contract with the vendor, as well as understanding the HRMS vendor’s purge process, especially in the case of cloud solutions, once you exit the agreement.
Featured white papers
Four key HRMS reports for department managers' dashboards
A well-configured HRMS dashboard is a powerful tool.
Five HRMS with standout analytics functionality
Some ideal HRMS choices for companies with extensive reporting and analytics needs
HRMS analytics: an essential tool for modern HR departments?
Lack of HRMS analytics functionality might be causing your HR department to miss out