6 Things to consider while purchasing HR technology

When investing in HR tech, it is important to consider industry and company size. Your HRMS must double up as a payroll management system, complete HR system, HRMS app for mobile, HRMS online software for desktop and must provide other HR solutions as well.

As a recruiter, it is important to invest in HR tech, so that your HR functions are seamless and efficient. But as a recruitment manager or company owner, you may find it difficult to zero in the right technology for your needs. In your search, you may come across multiple websites that cover almost all other aspects of HR, but sometimes leave out discussing HR technology. Hence, we thought it might help to collate a list of things to consider while purchasing HR tech. This is not a comprehensive list, covering everything you can possibly think of, but it is one that will at least get you started.

When investing in HR tech, it is important to consider industry and company size. Some other things you must keep in mind are: when to buy it; from where to buy it; and when or how often to replace it. Other than that, your HRMS must double up as a payroll management system, complete HR system, HRMS app for mobile, HRMS online software for desktop and must provide other HR solutions as well.

The selection of HR tech differs from one company to another depending on the workforce type and size. For example, opting for HR technology for a team size of 50 entry-level employees is different than one for 50 product and other managers. Additionally, the number and type of technologies needed will also keep evolving with employee headcount.

That said, irrespective of the industry and size of the company, there are certain HR software buying guidelines that must not be ignored.

Here is a list of six important things to consider while purchasing HR tech:

  • Self-assessment of the current status

As a company, you will have to ask yourself the following questions:

    1. Are you implementing HR tech for the first time or is this an upgrade of the existing system?
    2. What is the allotted budget for this tech?
    3. Is the team of employees, including managers and the HR team tech-savvy enough?

Once you have answers to these questions, you may need to create a summary of the infrastructure and the current technology employed, if any, before making a decision. Studying the infrastructure will help you determine if it has the ability to support the tech being considered without additional changes to it.

  • Prioritize features and customization

This is a critical point and must be taken care of greatly. Sometimes, we are excited about onboarding a new tech for our company and, hence, there identify many features that we may want as part of it. And even if the tech you are purchasing is capable of doing it all, it may not necessarily mean that as an organization, you really need all of them. As any tech is expensive, you must prioritize the features your company needs over the ones that are nice to have.

Here are some features that you must definitely think about:

  1. Single or multiple sign-on (depending on who or how many people will use it)
  2. Mobile responsiveness
  3. Real-time access
  4. Data storage

Other than features, be sure to find out about customization. It is important to know how much customization is possible and how much of it is needed for your company now.

  • Understand the needs of the tech platform

As an organization investing in the latest HR technology, you will want information from each of your prospective vendors regarding the kind of tech infrastructure that is needed for your new system. It is extremely critical that the technology you are onboarding is absolutely compatible with the existing non-HR and HR systems. Let’s consider this example; check if the new HR system is compatible with every internet browser. Run all such compatibility tests to be very sure before finalising.

  • Figure out the kind of user training they provide

Not everyone is tech-savvy. When you purchase any technology for your company, it is crucial that you receive training for the tech not only at the beginning but continue to do so even later. This training must not only be made available for the company’s HR team, but for all managers and employees too. Training support would be required at every level. The training material dispensed should be made available in different formats, like community forums, digital articles, webinars, etc. The human resource management system (HRMS) support team must offer training for things like:

    1. Payroll software or ePayroll system
    2. Artificial Intelligence in HR
    3. HRMS online
  • Check thoroughly about their implementation plans

Implementing a new tech at the company level is no cakewalk. While it may be easy for people who work with tech, it is not the same for those who are not from an IT background. Other than the obvious question about the time it is going to take to implement the new HR system, one must also ask other questions, such as:

  1. What level and kind of support does the vendor provide?
  2. For more comprehensive implementations, will there be a fulltime team to oversee the new system implementation?

If your vendor does not do so, you can partner with third-party firms for the job. This new arrangement must be covered in an agreement, though, to avoid any ambiguity or problem later on.

  • On-Demand vs. On-premise

Conventionally, people would opt for on-premise licensed software. This used to be the most sought after deployment method for technology products, such as HR tech. But now, with the craze of cloud deployment, this on-demand method is now rigorously opted for. It is also caught on as a trend because of features such as easy monthly payments, the need to not upgrade, accessibility from anywhere, etc.

As a business investing in HR software, you must understand what kind of tech you are purchasing and its comprehensive pros and cons before you make your decision.

Buying software may theoretically sound simple. But, it can be rather painful. From understanding the vendor’s marketing collateral to shortlisting the product or tech that is the best-fit, this activity is time-consuming. And, other than the research to zero in the tech you need, you will also have to ensure that what you choose is right and it can navigate through the changes in the company or in the way your industry works for, at least, the near future. If your software becomes obsolete in a few months of you investing in it, that investment would hurt. Therefore, keep the aforementioned points when shortlisting an HR software. But, that is not all! For more things to consider while purchasing HR tech, keep an eye out on this space.

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  1. comment-author
    Sheetal Kamble

    Amazing Article ! I would like to thank you for the efforts you had made for writing this awesome article. This article inspired me to read more. keep it up.

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