Selecting a human resources information system (HRIS) is a major decision that can greatly impact your HR operations The right HRIS software allows you to streamline HR processes, better manage employee data, and provide self-service options for employees and managers. However, choosing the wrong HRIS can lead to wasted time and money on a system that doesn’t meet your needs
This comprehensive guide will walk you through the key factors to consider when selecting an HRIS for your company or organization Follow these steps to ensure you choose the ideal software for your specific HR requirements, integration needs, budget and more
8 Steps to Select the Best HRIS Software
Follow this 8-step process to select the right HRIS software for your human resources department:
1. Determine Your Company Size
Your company size is a major factor in HRIS selection. Larger companies generally need more advanced systems with robust self-service, analytics and integration capabilities. Small businesses can often get by with more basic HRIS features and lower costs.
Determine your current and projected future number of employees so you select a system that can scale. Get input from leaders on anticipated growth plans as well.
2. Check Your Existing HR System Capabilities
Take stock of your current HR systems and processes. Are you using Excel spreadsheets or other manual processes to manage HR data? Do you have an existing HRIS that needs upgrading or replacement?
Make a list of current HR processes and pain points. This will help focus your search on an HRIS that can automate manual efforts and streamline productivity.
3. Gather Input from HR Staff and Other Stakeholders
Get input from HR team members, executives, managers and other key stakeholders on their needs and pain points. What HR processes would they like an HRIS to improve or automate? What capabilities are they missing from current systems?
Their feedback will ensure you select an HRIS tailored to your organization’s specific requirements. Appoint a selection committee representing various interests.
4. Make a List of Must-Have HRIS Features
Based on steps #2 and #3, make a prioritized list of features your ideal HRIS must have, such as:
- Employee records management
- Benefits enrollment
- Time tracking
- Payroll
- Performance management
- Self-service portal
- Custom reporting
- Mobile access
- Integration with current systems
Focus your search on HRIS systems that have these essential features you identified.
5. Determine the Type of HRIS You Need
HRIS software generally falls into three main categories:
Core HRIS – Employee record management, HR workflows, self-service, analytics.
Talent Management Systems – Recruiting, performance management, learning, compensation.
Payroll Software – Payroll processing, tax reporting.
Decide which type aligns closest with your needs. Many HRIS platforms offer integrated suites covering all these HR areas.
6. Research Top HRIS Software Options
Now conduct thorough research on top HRIS software choices that fit your size, budget and requirements.
Consult HRIS review sites like G2 Crowd, Capterra and Software Advice that allow you to compare products based on ratings, features, pricing and more. Make a shortlist of 3-5 top contenders.
7. Schedule Demos of Each HRIS
Next, schedule demos with each of your shortlisted HRIS vendors. Prepare questions ahead of time based on your requirements and pain points.
Ask the vendors how their HRIS software can specifically address your needs. Take notes on pros and cons of each system.
8. Implement the HRIS Software
Pick the HRIS that best aligns with your needs, budget and capabilities based on your thorough selection process. Develop an implementation plan and realistic timeline.
Migrate data, test integrations, train employees and roll out self-service options in phases. Continuously gather feedback to further customize the system.
Key Factors in Selecting HRIS Software
As you evaluate HRIS software options, be sure to consider these key factors:
Feature Set – Ensure core HR features align with your requirements along with any needed add-ons. Prioritize must-haves.
Ease of Use – The system should be intuitive for HR staff and employees. Seek simple navigation and built-in help guides.
Implementation and Training – Look forvendor-provided implementation consultants and user training.
Customer Support – Check for responsive, ongoing phone and email support as part of the fees.
Data Security – Confirm the vendor has robust security protections, backups, and disaster recovery.
Reporting and Analytics – Reporting functionality should be easy to use and offer customization options.
Integration – The HRIS should integrate well with your payroll, benefits, recruiting and other HR systems via APIs.
Cost – Get detailed pricing estimates including fees, number of users, implementation, training, support, and customizations.
Scalability – The system should easily scale up in features and capacity as your organization grows.
By thoroughly evaluating HRIS systems against these criteria, you can select the platform that best meets your human capital management needs today and in the future.
Top 5 HRIS Software Vendors by Market Share
The top HRIS software vendors currently dominate nearly 50% of the market combined. Here is a comparison of the top 5 providers based on market share according to industry research:
| Vendor | % Market Share | Starting Price | Best For |
|---|---|---|---|
| SAP SuccessFactors | 15% | $75/employee | Mid-size to enterprise |
| Workday | 10% | $100/employee | Mid-size to enterprise |
| Oracle | 9% | $90/employee | Mid-size to enterprise |
| UKG (Ultimate Kronos Group) | 7% | $2/employee | Mid-size to enterprise |
| BambooHR | 5% | $4/employee | Small to mid-size |
However, there are dozens of other HRIS solutions on the market that may better meet your specific requirements. Leverage the selection approach in this guide to find the ideal platform for your organization.
Should You Use an HRIS Consultant?
Given the complexity of implementing a new HRIS, it often pays to hire an HRIS consultant to assist with your HRIS selection and rollout. Some key benefits of working with an HRIS consultant include:
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Needs Analysis – A consultant can conduct a detailed needs assessment and help develop your software requirements list.
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Unbiased Recommendations – They will give impartial guidance on the best software options for your needs.
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Implementation Planning – Consultants create tailored project plans for configuring systems and migrating data.
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Training and Support – They provide training on using the HRIS software and ongoing support.
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System Optimization – Experienced consultants can help customize systems and enhance performance.
Just be sure to find an independent HRIS consultant, not one affiliated with a software vendor. Their outside expertise can streamline HRIS selection and implementation.
Pitfalls to Avoid When Selecting an HRIS
While a methodical, well-researched approach is ideal when choosing an HRIS, here are some common pitfalls to avoid:
- Not involving HR staff and other stakeholders in selection process
- Focusing only on price rather than capabilities and fit
- Not evaluating ease of use and employee adoption
- Lacking a plan for data migration
- Not budgeting for implementation help and training
- Overlooking scalability as the company grows
- Poor IT security and backup provisions
Taking shortcuts when selecting an HRIS often leads to choosing the wrong software and wasted investment. Follow the steps in this guide to prevent missteps and choose the ideal HRIS solution.
Tailor Your HRIS to Provide Value for Years to Come
Selecting and implementing a robust HRIS platform tailored to your specific human capital management needs delivers immense value now while providing a foundation to support future growth.
By following this comprehensive step-by-step guide, you can identify the right HRIS software for your organization. Conduct thorough research, document requirements, involve stakeholders, evaluate top vendors, and select the system that best aligns with your human resources processes and pain points.
The investment of time and effort required to properly research and select an HRIS pays off many times over with improved efficiency, insights, and employee satisfaction. So take a methodical approach, leverage tips from this guide, and choose an HRIS poised to streamline HR management at your company for years to come.
Evaluate your existing HR tools
If you consistently run into roadblocks with your current HR system, it’s likely time to consider an upgrade. Before digging into the selection process, make a list of challenges in your current processes and workflows.
Top considerations may include things like information siloes, repetitive manual tasks, or ineffective customer support. Being clear about your needs upfront will increase the chances that your new software will accomplish your goals.
Identify must-have features
A wishlist of features is helpful for identifying the limitations of your current HR toolkit, but it’s unlikely that the software you choose will check every box. To prioritize, make one list of your must-have HR system features and a second list of nice-to-have capabilities.
Use these two lists to narrow down your options as you move forward in the HR software selection process. Eliminate products that don’t meet your minimum requirements, and use the secondary list to pick the solution that will make the biggest impact.
Selecting Human Resources
How do you select HR software?
Here are more HR software selection tips: Create a strategy to evaluate HR tools. Define the organization’s biggest workforce challenges, needs and goals. Assemble a cross-disciplinary buying team. Include representatives from HR, IT and finance, as well as departmental managers and staff who will use the software.
What makes a good human resources information system?
A good human resources information system (HRIS) can help businesses of all sizes make data-driven decisions, improve compliance, and cut down administrative work, all within a single platform. While an HRIS is a powerful management tool, choosing the right system is complicated if you don’t know where to start.
How do I choose a HRIS system for my organization?
When beginning the process of selecting an HRIS system for an organization, HR professionals should look beyond the needs of the HR department and consider the strategic plans of the organization. An organization on the precipice of an aggressive growth period will have different needs than one that is “right sizing” or condensing operations.
How should organizations evaluate and select HRIS products?
Therefore, organizations should do their due diligence and involve the appropriate stakeholders in the evaluation and selection process. Many HRIS choices are available at different price points providing different levels of functionality.
