The Covid-19 pandemic forced companies around the world to shift their perspective to well-aligned new ways of working. The sudden needs for advanced technological ecosystems, a dynamic remote work environment, and efficient strategies and processes have caused businesses to bid farewell to paper-based, less efficient systems and adopt modern Human Resource Management Tools.
[Also Read: Why HRMS is Crucial Today More Than Ever Before?]
A good HRMS can help organizations create better talent analytics and strategies to improve employee engagement and performance. Considering the range of benefits it offers, many organizations today are looking for their perfect HRMS to make things work seamlessly. But whether you’re a seasoned pro or are new to HR projects, the HRMS selection project can be a complex process.
Using the steps highlighted below, you can find the best HRMS platform for your company.
Put Together a team of internal stakeholders and users.
It’s crucial to identify your procurement team before you start looking for the right HRMS. The team should include the internal stakeholders and potential system users, including the human resource manager, HRMS selection project managers, finance executives, IT executives, and some employees.
Going solo on the mission will add to your stress and may leave you confused. On the other hand, a team can work faster and efficiently and bring more ideas to the table. You can split the work and distribute it among the team members to form a conclusion.
Define your requirements
List down the areas where the improvements can be made, where the process is unnecessarily toiling, and where your HR department lags. Discuss with your team the challenges you want your HRMS to help you overcome as well as financial considerations and security requirements.
With a keen eye on the future, list all the specifications and additional requirements that could cause a positive impact on your organization. Also, consider the needs of parties who will actively use the HRMS.
For example, the employees will manage their benefits or track their paid-time-offs. The HR Managers would want to use it to build reports or track employee performance.
Also, take into account your company’s size and future plans. A low-level HRMS won’t be able to handle a surging business. Therefore, finding a scalable solution is the key.
Identify the Right Vendor
The market is brimming with HRMS vendors, so it may take an excruciatingly long time to check with every vendor. Your professional connections can be of great help when it comes to identifying the right vendors. Another good starting point is to consider your budget. Based on your spending capacity, you can start your search. Don’t forget to consider their portfolio, experience, and willingness to learn more about your requirements. The ROI you expect is also an essential factor to consider. Issue a Request for Proposal to help you identify each vendor’s strengths and weaknesses. Properly evaluate each HRMS.
Look for vendors who are okay with your customizing requirements.
Evaluate and shortlist vendors
Once you issue an RFP, the vendors will start responding to it. Evaluate each vendor with the help of your team and use the scoring method to shortlist them.
Practice caution when responding to applications as there are several con artists out there in the garb of sellers. Always run a background check before taking the talks forward. Verify every company’s developing team’s skill and expertise and the years of experience they have.
Request vendors to showcase their project demo to get an idea of the company’s mastery over the domain and how it addresses your concerns.
Also, the technologies you consider should be readily integrable, scalable, and must have the latest technology. Ready-made HRMSs and software are good options for your company if you are looking for a solution to integrate as soon as possible.
Start negotiating and clarify your transparency requirements.
If there are some HRMS you like best, start negotiating with vendors. Chances are, they’ll agree to work with you on payment terms. Get into the skin of development and ensure that no hidden costs arise by the end of the development. From the development process to licensing your HRMS, there should be transparency at each step before you sign the contract.
Consider hiring a consultant.
If you are a small team, finding it difficult to manage the procurement process, consider hiring a consultant. Consultants have experience navigating this complex ecosystem, and they will evaluate your needs and help you find the solution that aligns with your needs.
Now that you know the steps that will lead you to your ideal HRMS system, it’s time to get to work. The right HRMS system will support your HR team by leveraging automation, data, and greater collaboration and assist them with several functions, including – employee management, payroll, benefits, applicant tracking, timesheets, and performance management. With so many benefits, a good HRMS platform can be a game-changer for your organization, so it’s worth weighing your options before making the final decision.