Organizations in all industries, geographic locations and sizes face the same common challenge: What HR software to select? This question is one of the most important to answer as it dictates the entire company structure, processes, and even financial stability. Finding the right HR software will allow you to attract and retain top talent and much more. But firstly, what is HR software? Are they just management solutions used for HR and payroll as it traditionally was? Or has HR SaaS evolved into much more than that?
HR software is an essential modern application that allows you to renovate and optimize your HR management duties, making it quicker, cheaper, and more effective to accomplish your goals. HR software let HR professionals leverage their existing expertise, while integrating and implementing new techniques that save countless hours across HR processes. HR solutions like this can sometimes take the place of paperwork and streamline human capital management.
HR systems can range across all functions of human resources including:
- Applicant tracking system
- Talent management
- Performance management
- Workforce management
- Compensation management
- Time and attendance
- HR payroll
- Succession planning
- Leave and absence
- Learning management
- And more…
It is likely that you will need several different management software to execute these business processes. While one system will be designed to track time & attendance and allowing employees to request tine-off, another is specialized in documenting every performance review or appraisal and managing employee performance.
The Different Types of HR Software Strategies
There are many HR software strategies that can be defined, but for this article, let’s examine the three main types of HR solution approaches:
- All-in-one HRIS
- Best-of-breed ecosystem
- HR Platforms
One common misconception is that things such as onboarding or payroll can be considered as HR strategy, and while that is true in a way, they are features that will be consolidated into one platform, which can be chosen from the 3 main types of HR software strategies.
An all-in-one Human Resource Information System, or HRIS for short, is a software that lets HR activities and tasks occur digitally and gives a comprehensive view of the overall HR functions.
There are many pros to using an all-in-one HRIS. The main reasons companies tend to choose this is for its centralized nature. It lets employees manage, access, and even automate processes that would otherwise take much longer. Additionally, as it is an all-inclusive platform, integrations are built in. This makes it easy for the entire organization to follow through an HR workflow.
However, there are also some cons with this type of setup. For one, the price point for all-in-one HRIS is typically much higher than that of the other options. They provide less flexibility as often HRIS’s are prebundled with applications and can require teams to hire a full-time employee dedicated to managing the software.
Best-of-Breed software are commonly referred to as the building blocks for an inclusive ecosystem. They let you mix and match different software to form an ecosystem that acts as a human resources management system. Often, this choice is used as companies are in rapid stages of growth or for large organizations. This is because it gives them the flexibility to switch between different services.
Despite this advantage, having multiple systems that aren't interlinked with each other can cause lag and confusion between HR employees and result in wasted time. As the systems don’t share data, things get lost in transportation which can complicate or completely ruin the employee experience. For many companies, this break in the chain leads them to choose the next option, an HR platform.
Cloud-based HR platforms let companies choose different systems and connect them seamlessly through transparent integrations. This HR technology gives the largest of companies the benefit of best-of-breed ecosystems in which they can pick and choose while also giving them the ability to synchronize data between all the systems.
Solving this pain point eliminates the need for complex, redundant HR solutions that ultimately slow down efficiency. PeopleSphere’s HR Platform in particular lets companies centralize all their HR software solutions without having to sacrifice the flexibility if they were to go with an all-in-one provider.
Not only does each HR system connected to the platform help the HR department carry out human resource management duties such as staffing and workforce planning, It also allows other parts of the organization become involved as they also play an important role in the employee experience.
Now that you know the main types of HR software strategies, let's find out how to choose which software to choose for your connected ecosystem.
How to Select the right software
Evaluation of Needs
The very first step to determining the correct HR software that will suit your needs, is to determine what those needs are. Now that doesn’t simply mean your current needs, but as this is an investment, you must project into the future and determine what types of features you may require down the road.
To do this, you must analyze your current software and talk to the people who use it the most. See what the specialists want, what could make their experience better, and what could make operations smoother. With that input, you can start making preliminary judgements on the type of software that will fit your needs.
Then, you must define the expansion and growth strategy for your organization. Will you automate more heavily in the future, perhaps you need more flexibility or integrations as your organization acquires new companies or expands to new locations. Whatever the case, you should try to account for everything and then with those criteria, narrow down your options.
If you still can’t determine your needs, some simple questions that you can ask yourself and the team include:
- What are the failure points or bottlenecks in the current HR ecosystem?
- What is the biggest or most annoying obstacle that you face, and what can improve the employee experience?
- What is the most inefficient task that could be automated or streamlined with a new software?
- Have there been any complaints with the current system from external users or internal users? If so, which ones are the biggest and will the new software address these concerns?
- Will the new software require training, or potentially a new hire dedicated to managing the new technology?
- What are the policies surrounding privacy, data security, etc. that may be adversely affected by a new HR software? and lastly,
- What are the financial boundaries that must be kept in mind, as well as what return on investment is expected from the system?
Once these questions are answered, you can select are on track to select the right HR software!
Now that you made your decision and selected the right HR software, it is important to make sure that your employees are comfortable with the new systems in place. It’s not enough to select a software that offers employee self-service and access to their employee records. In addition to improving the employee experience, the new software should be a way to open the conversation for a company-wide change with employees can make them feel more valued.
With that being said, new HR software can be confusing and without the right implementation plan, just selecting the right HR software will not suffice. Employee’s may need training, convincing as to why the new software is beneficial, or even a transitory period in which the existing service is slowly phased out.
One way to simplify change management is to use a platform approach. The interface stays the same while you switch or add different systems to the ecosystem. The consistency for the user and the ease of the roll out makes this strategy the best option for staying agile.
However, one thing to note is how important it is to take advantage of the onboarding and training that is usually offered by the vendors. This take’s the burden off your shoulders, as well as the cost, and protects the integrity of the company.
How the PeopleSpheres HR Platform Gives You the Freedom to Choose
If your business needs are constantly changing or you are constantly outgrowing your current systems, take a deeper look into PeopleSpheres HR Platform. PeopleSphere’s innovative HR platform combines the best of all worlds by giving companies the flexibility, responsiveness, and agility to swap different management systems from different vendors while retaining the data flow and synchronization across your HR ecosystem.
PeopleSphere’s platform consolidates and accumulates software and unifies them to a centralized point of access.