As the global competition in every industry is on the rise, businesses are competing amongst themselves to hire the best talents exclusively. And, once hired, companies are striving to ensure that they offer reasonable compensation and excellent benefits. This is majorly handled by the human resource (HR) team, who are also responsible for maintaining company policies and essential documents. In today’s industry, the responsibility of the HR team is quite diverse and time-consuming which is why a lot of companies purchase an HR system.

It is one of the most crucial purchases a company invests in, especially because the stakes are too high. With the COVID pandemic, the market for HR software systems has witnessed an explosive growth. The prime reason is the increased need for the management of people due to the trend of remote and hybrid work. But, what does an HR system do and why do you need to purchase one? Well, we will answer these questions in the article below and also help you understand how to find the best HR system software available in the market.

So, what are you waiting for? Jump right into this article and know all about an HR system and take a step further to purchasing the industry’s best HR system software!

What Is An HR System?

To understand the HR system meaning, you need to understand that every HR software is not the same. Generally, an HR system comprises a wide range of tools used by a company to manage the different HR processes and aid the HR team in the better performance of their roles and responsibilities. Some common HR processes that are managed by HR systems include recruiting, training, onboarding, payroll management, performance management, time and attendance maintenance, and succession and responsibility planning.

Traditionally, an HR system was only accessible to the HR team and aided them allowing better management of the organization’s employees and resources. But, today, with more and more companies expanding globally, it can be quite difficult for HRs to manage every little process. So, today’s HR systems are equipped with employee and HR portals to ensure that data is safe and is not accessed by those not permitted. The benefit is that employees can perform certain HR functions without the intervention of anyone from the HR team. For example, they can check the number of holidays they have available and apply for holidays as and when necessary.

What Are The Different Types Of HR Software Systems Available?

Before we discuss how you can find the best HR system in the industry, let us learn about the different types of HR software solutions available in the industry. Every HR system consists of a number of modules with each performing a different type of function. This makes the HR system highly comprehensive and simplifies the management of different business processes.

Some commonly used names that refer to all-in-one HR software systems include – human resource management system (HRMS), human capital management (HCM), and human resource information system (HRIS). Although these terms are often used by organizations interchangeably, they have a few differences that expert HR teams must be aware of.

Generally, a comprehensive HR system will consist of these modules that might also be available separately to allow you to build a customized software solution for your company:-

• Core HR modules that allow management of employee records, payroll, and financial benefits
• Talent management modules that allow HR teams to maintain compensation, learning, recruitment, performance, and succession records
• Workforce management modules that are aimed at time and attendance maintenance and event schedulers
• Service delivery modules that allow the HR team to offer self-service features to employees and managers and help desks for added support

How To Find The Best HR System Software In The Industry?

The most common question that HR teams and organizations have is how they are supposed to find an HR system that offers basic functions and specific features that can aid the organization in the best possible way. Truth be told, comparing all features and functionalities won’t help you much because most HR systems perform the same functions. The main point is whether the HR system is capable of solving the most complex and time-consuming business processes.

One of the prime mistakes any organization can make is finding products and HR software solutions that automate existing processes. Instead, you must find HR systems that automate new business processes or offer access to ground-breaking technologies that can help better and speed up different processes.

To help you find the best HR system software in no time, we have created a list of the steps you can follow:-

Create A List Of Requirements

The first crucial thing to do is to conduct an online search, but if you do not have a clear vision of what the software must consist of, you might easily be lost. This is why we recommend you start with an assessment of the current HR system and tools available in the industry. You must check its features, analyze its limitations, and understand whether it fulfills crucial tasks performed by your team.

This step might be daunting and quite time-consuming for a single person to take on. We recommend you collaborate with the rest of the members of the HR team in this session to cover more ground and share ideas with each other. You can also contact other departments within the organization to understand their needs to better ensure that the HR system bridges the gap. Now, you will be able to compile a list of all requirements that the HR system must fulfill.

Remember that modern HR solutions can do so much more than data storage and management. When the HR system is chosen properly, you ensure that your team can perform their roles and responsibilities to the best of their abilities. We recommend choosing an HR system with strong security protocols to ensure that company data is well-managed and not at risk of being stolen.

Build A Business Case

Buying an HR system might seem simple, but there is a lot at stake. It is undoubtedly one of the most crucial investments you will make for your organization. Hence, it is essential that you choose the best HR system available and ensure that you have an appropriate budget. You must offer both quantitative and qualitative data that helps your organization’s stakeholders and management understand why your company needs a new HR software system.

Some points that your business case must touch on include:-

• Feedback from different teams on existing processes and efficiency
• Assessment of the current HR system based on the requirement list (created in step 1)
• Information explaining the limitations of the current system and the operational costs spent on it
• Quantitative data as to how a new HR system can boost operational efficiency and help meet other business goals set by the teams
• A proper step-by-step calculation of the return on investment (ROI) the software will bring
• Identify main stakeholders and principal users in the company and adjust the above to their needs

Shortlist Probable Vendors

Now, with so many choices available, you must start shortlisting available vendors as per your needs. It is highly possible that you might not find an HR system that fulfills all business requirements. In this case, you must ensure that it fulfills the minimal requirements that your company has. Then, you can proceed to refine the requirement list further by benchmarking the HR system needed. We recommend you compare all functions offered, check the essential vendor details, and determine the objectives fulfilled by each provider. Here, you can also create a template listing your requirements to make it easier for you to compare the software solutions you come across.

Meet The Vendors Shortlisted

Before you sign any contract and purchase an HR system, you must meet the potential HR software vendor. Otherwise, you leave the potential of failure and make the mistake of choosing a system that cannot be implemented within your preferred timeline. Or, you might face issues with customer support and doubt resolution down the line.

Some common questions HR teams ask potential vendors to determine whether they would be a good fit for your organization or not include:-

• What will be the implementation timeline once the contract is signed?
• What changes do we need to implement to our current HR processes to seamlessly add your HR system?
• Are there any changes that are to be made to your existing HR system to cater to our business needs?
• What modules and functionalities are necessary for the proper functioning of our organization?
• Will we get any training for our HR employees to help them understand how to use the HR system?
• Who will be responsible for resolving any system issues and representing your company?
• What is the timeline and process followed when a query is raised and an error is reported?

Review Offered System Capabilities Against Your List

A great way to understand whether the HR system would be a success with your team or not is the ROI. Ensure that the calculation of the ROI is done as soon as user adoption is started. In ideal cases, every employee will be using the HR system which is why you must ensure that the software has a user-friendly interface. Moreover, it should not be complicated to use because that would be time-consuming and defeat the purpose of using an HR system. After all, the focus is to improve overall organizational efficiency which is why it is necessary to choose a simple and functional HR system.

Another key point to remember is that you must ask the vendor’s team to demonstrate the use of the system and test it to find any functionality gap. We recommend including a few other team members during the demo session and getting their feedback to understand whether the HR system is a good fit for your organization or not. You can also get in touch with the recent clients of the potential vendor to get their reviews and identify potential problems (if any).

Make Your Decision And Sign The Contract

Although the ultimate choice of the HR system lies in the hands of the HR team, it is essential to include other teams and departments of the organization. After all, the HR system will ensure that the requirements of the other teams are fulfilled. This will help ensure that the system does not miss out on any essential functions that ultimately affect the well-being of all employees.

You must ensure that the HR system you choose is the best HR system software suited to your business demands, goals, and needs. Remember that there is no single correct answer as to which is the best HR software system available in the industry. So, conducting your research and going through all available options is necessary.

Conclusion

We hope the following article helped break down what an HR system is all about and provided tips to help you choose the best software fit for your organization. If you’re still confused or need an expert to help you out, you can get in touch with the experts at an HR outsourcing company for their professional advice and recommendations. Need to build a professional and capable HR team to guarantee the well-being of your employees? Or, are you looking for software solutions that can take your business to new heights? Whatever your HR needs, Qandle is here to help. Schedule a call with our experts and take the first step to fulfilling your organization’s HR needs.