There will be a deciding moment when you finally realise that your business needs an upgrade in terms of managing your HR. It usually comes when what was once your most dependable tool in payroll calculations and leave tracking, Excel, slowly becomes a drag.
It may come when your HR Manager leaves the company and the new manager can’t pick up the complicated Excel formulas that only its creator can understand. The realisation may also hit you when you discover that the legacy system that your company has been using is actually costing you more with time-consuming maintenance and upgrades – and it won’t even allow you to pull out data when you need it the most!
So now there’s no turning back. You need a new HR software that reliably covers your company’s HR needs. Here are some things you should look out for when hunting for the right HR software for your business.
1. Service Requirements
Before you start searching for HR software, you should be clear on what functions you need. The most common requirements for all businesses are payroll and leave. Businesses that have flexi-hours policies and need to calculate overtime hours easily would probably need a time and attendance system as well. Other companies might just require claims and benefits systems.
There are full-service providers that offer an integrated solution that contains all of the features above. The added benefit of having an integrated system means that all your no-pay leave, overtime, claims, and benefit reimbursements can be displayed in your employees’ pay slips all at once!
2. Integration Capabilities
Third party integration is an important feature that you should keep a look out for.
Imagine if your HR systems could also be integrated with, for example, accounting software that your finance team uses. HR and Finance’s roles are getting more intertwined, especially when it comes to payroll. When a payroll system can integrate easily with other accounting software, you enjoy much greater control and efficiency because both teams will be working off the same data.
Be wary of HR software providers who are not open to partnerships and integrations with third parties as this signals inflexibility, which may restrict your integration options in the future.
3. Long-term Viability
Changing systems is not an easy process. You must convince your management, transfer all your data over, re-educate your employees, do parallel testing, and take time to get used to the new system. Essentially, it’s time consuming and not something you want to go through every other year.
While it is important that your new HR system has the right features, another top consideration should be the flexibility and scalability of the software to grow with your business. This means that the software should be able to keep up with technological advancement, regulatory changes, and other developments. Ask vendors about their product roadmap so that you know how often you can expect upgrades to the system.
To use the Cloud or not? This is a dilemma many decision makers have, especially if they are not too familiar with how Cloud software works. The decision is actually a very easy one to make. Here’s why.
There are many benefits to the Cloud. Among them are that updates are often done automatically over the Cloud at no extra cost. It is also easier and faster to get the system set up and running. Cloud systems are also found to be more cost-efficient, although they seem to be more expensive at first. They actually help you save because Cloud software’s subscription model does away with lots of hidden costs.
While there are still many concerns about the security of data on the Cloud. Such sentiments are rapidly dissipating as more Cloud providers invest in data security. This includes complying with global information security standards like ISO 27001 to provide greater assurance to their clients. In fact, in a Singapore FinTech Conference held last month, the Managing Director of Singapore’s Central Bank has stated that they have no objections to Financial Institutions using the Cloud. This demonstrates the increasing acceptance of Cloud adoption, coming from one of the most regulated industries in Singapore. Having said that, it is important to do some due diligence to ensure that the HR software provider has proper security controls in place.
5. Vendor stability
With the rising popularity of the Cloud, the cost of developing software has been greatly reduced. This has led to the sprouting of many new Cloud software companies in the marketplace. While many of these new software may cost less and boast beautiful user interfaces, it is important to do some background checks to ensure that their business is viable and financially stable. After all, given all the effort required to switch systems, it would be a waste of time and money if the vendor won’t be around to service and improve the system after a couple of months. Some of the things you can do is to arrange a meetup with the company’s representatives in person, preferably at their office, so you can have a feel of how their business is doing. You can also go to the ACRA site (for Singapore software providers) to purchase a Corporate Compliance and Financial Profile to check out the financial health of the software provider.
This may seem like a no-brainer. Almost everyone looks at costs first when they are shopping for a new HR software. This is especially so for small and medium sized companies with limited budget.
While cost is important, don’t get caught in the trap of using the price tag to decide which HR software to get. More importantly, evaluate each software carefully for the value you will get out of it. It’s worth paying more money if you can save half the time. In fact, costs should be the last thing you discuss with your potential HR software provider. First and foremost, you should investigate if the software actually suits your needs.
With that said, however, it is important to make sure that there are no hidden fees involved before you sign the contract. The pricing structure should be transparent to prevent any unnecessary shocks when you receive the invoice. Also, ask the vendor upfront if there will be any other hidden costs required in the future, such as maintenance or upgrading fees. All these must be factored in when considering the total cost of the software.
You can get all these and more!
Our business is to help companies like yours do more in HR with less. With 16 years of Cloud HR experience in Payroll, Leave, Time & Attendance, Claims and more, we have helped more than a thousand customers transition from manual spreadsheets and traditional HR software to our modern Cloud HR solutions. Interested in modernising your HR? Sign up for a free trial, or contact us to have a quick chat!