Why understanding business requirements is critical when buying a new HRMS

Not all companies have the same HR needs, which is why it is important to understand your business requirements before choosing a new HRMS. Some companies might simply need a recruitment system, whilst others look to integrate with other applications.

Whatever your HR needs, there are a few questions that should be kept in mind before purchasing a new HRMS. Do you want to replace the current software or upgrade the existing software? Do you expect any major integrations? Does your company prefer on-premise or cloud-based software solutions? The following helps you get an idea of what all to consider while choosing the right fit for your enterprise:

Does your HR software include the features your company needs?

Most HRMSs can record time and attendance, process payroll, manage taxes and benefits, centralize information, and generate ad hoc reports. However, there are other functionalities that are considered must-haves by many companies. The software should:

Identify and prioritize your HRMS requirements using this fully customizable requirements template 

  • allow business managers to centralize HR employee database and set access permissions
  • support a multilevel payroll system that can handle the payroll of both union and non-union employees
  • monitor compliance in various aspects such as hiring and workforce management
  • support multiple countries, languages, currencies, and processing requirements
  • offer intuitive interface from payroll to benefits and support external applications
  • provide access to insurance and benefits to employees on both mobile and desktop platforms
  • provide customization options so that the software can be specifically tailored to the needs of the company

Does your company need a performance management solution?

Basic performance management software provides companies with basic functionality such as recruiting employees, tracking employee performance, and giving varied compensation to employees based on their performance. In addition to these, the software should feature other functionalities that are critical for most companies:

  • Automated workflows for employee performance reviews and management processes
  • Performance analytics, to pinpoint top performers in the company
  • Flexible compensation systems for both standard compensation and pay for performance compensation
  • A streamlined recruitment process

Does your company need employee engagement tools?

HRMS engages employees through mobile devices and social media collaboration. If this is one of your key business requirements, make sure potential HRMS providers offer employee engagement tools with an easy-to-use interface and support for mobile device platforms. The new HRMS should allow employees to collaborate on projects remotely, and to get in touch with your company's experts when a business requirement arises.

The most important: system implementation and support expectation

Not every HRMS provider gives you the degree of support you need. That’s why it is important to thoroughly understand the extent to which a vendor can support you. One critical area you should understand is how the new software will integrate with your company’s existing software. You should also do your research on:

  • whether the integration be achieved through custom integration or APIs
  • whether any cloud HRMS vendors you are considering own their data centers or whether they lease it from a third party
  • if it is from the third party, what type of contingency plan it has in place in the event of third-party data center failure

These are the some of the most pressing questions that you should ask of yourself whilst considering a new HRMS. Indeed, there are many factors that need to be evaluated to choose the right HRMS to fit your specific needs.

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About the author…

SutiHR is a comprehensive HR management solution that automates the entire HR-related activities from recruitment to retirement. Our cloud-based solution provides innumerable options and has integrated with various external applications to suit the business needs of all sizes.

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