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19 Tips to Consider When Looking for HR software


Purchasing an HR and payroll software that is appropriate for your business can be a muddling task. There are a number of advantages that are in purchasing HR software. Few of them are it makes sure about statutory; payroll processing is made simple, and also makes recruitment easier which saves hundreds of hours for the human resource team.

Manpower requirement needs to be enhanced when wrong software opts. There are a number of categories such as TribeHR, SumHR, and more and hence the HR manager should make sure to pick the right HR software required for their business. Here are a few tips when looking for HR software.

looking for HR software

What to Consider When Choosing HRMS for Your Company?

An HR department of an organization plays as a medium between employee and the organization management. Their main aim is employee engagement and makes sure that employees are working their best to get the goals done.

According to the study, HR managers spend 41% of their time in processing payrolls, preparing job descriptions, taking interviews, etc. Due to this, they are not able to focus more on their core duties and employee engagement. This is where HRMS comes into the picture.

An HR software not only helps the HR department in managing their duties but also helps in automating different HR tasks. This will result in saving a lot of time for HR people and they can focus more on other important things. Now as the advantages of it are many, there is a high demand of it and several companies have launched their own products.

To purchase a better HR software that suits your company requirement, you need to consider a few things,

  1. Analyze your organization actual requirements
  2. Consider the size of your organization
  3. Deciding who will be using the software
  4. Checking all the features it is providing
  5. Cost of the HR software
  6. Does it provide customization options
  7. Check the integration factors

Now as an employer, if you do not have any idea regarding this matter, you are left with two best options

  1. Buy a readymade software
  2. Develop their own customizable one.

But before deciding on any option, check out the different pros and cons that come along with it.

Advantages and Disadvantages of Ready-made Software:

Pros of ready-made software:

  1. Cost-saving
  2. Quick deployment and execution
  3. Better maintenance
  4. Support
  5. Training
  6. HR & legal compliance

Cons of ready-made software:

  1. Dependency on product features
  2. No flexibility
  3. Customization problems

Advantages and Disadvantages of Tailor-made Software:

Pros of custom-built software:

  1. Can be developed as per requirements
  2. Customization options

Cons of custom-built software:

  1. Expensive
  2. Time taking for developing

Features of HRMS Software: 

  1. Managing employee database
  2. Applicant tracking
  3. Recruitment process
  4. Tracking work progress
  5. Monitor payroll process
  6. In build analytics to get data
  7. Management advantages
  8. Helps in creating reports
  9. Employee performance evaluation

Quick Tips Before You Buy Human Resource Software:

1. Understand your Business:

Prior picking the right software for any business, it is important to understand the business and its needs. The present software requirements for the organization can be understood by understanding the organization. The growth rate and strategic plans of the organization can be linked with the HR software to be bought.

Another tip would be to discuss with the HR department and pen down comprehensive requirements. Apart from this researching more on HR software can help you gain more knowledge about the aspect.

2. Hunt for a simple software:

Simplicity is an important aspect to be kept in mind though you ship HR software or developing custom software internally. A non-rational and simple interface is what employees are looking for rather than messy with many features. Software with fewer features can be a suitable one with better usability. Simplicity is thus important because the more complex your software is, the more training is required for your employees.

3. Get to know the required software compatibility/features:

It is important to research and check if the new software syncs and works with your existing software. If not, it would be a waste of time, resource, and energy. At times, it may also happen that certain important features would be missing. It is hence suggested to check the HR software that is required and whether it possesses all the features. Check if they are effective and efficient for the system.

Ensure that all your present, as well as future systems,  are associated in the right manner. This feature is mandatory to be checked as the HR software you purchase may have to be integrated with your project management software, CRM software, payroll software, ERP and more.

4. Desktop research:

Prior purchasing HR software, make sure to perform wide range of research about it. Run through a number of vendor sites and HR comparison sites in order to get to know updates news about HR software. It is advisable to do research in an unhurried manner. It would be good to take enough time so that, you don’t take decisions in just thirty minutes after visiting an exhibition.

5. Try before you buy:

After you’re clear with your requirement in HR software, you have to find if the software that you’re purchasing has the right functionality you require. A simple example can be that all HR software can possess a holiday management element, but may lack a payroll processing feature in it. It is hence good to research in all aspects. In order to pick the right system you require, it can be perfect to ask demonstrations before purchasing from the HR software providers.

6. Demo of the product:

It is always beneficial to view demos before purchasing. Remember to possess your pen down requirements in hand, and look out in the demos if they meet your requirements. Each vendor would present their software and mention that theirs is the strongest, but they may or may not sync with your needs. Make sure that the demo you watch satisfies all the needs you require.

7. Finalize your budget:

Before getting started to buy HR software, it is important to determine the budget to be purchased. A quick research can be achieved in order to know the budget and then move forward. Depending upon the size of your business choose your features and price.

8. Trial must be your first step:

It is always good to trial the software before purchasing. Testing the software is a mandatory aspect of buying the HR software. The aspects to be tested before purchasing software are functional performance, easy learning, flexibility, a simple methodology of data entry, and reporting capabilities. If your requirement is high in one particular aspect then go through that particular section thoroughly.

9. Get to know the bug fixing methodologies:

Almost all software will surely show up with bugs and hence it is mandatory to know the way the vendor handles the software at times of bugs. Enquire about any patches present and also the time period for release of the software. Moreover, every vendor has their own policies and it is essential to understand them in the right manner.

10. Analyze the cost:

Once the HR software is identified and finalized for purchase, it is mandatory to get to know about the cost factors. There are few hidden costs to available in the HR software. the fixed cost are the ones of support and software.

Apart from these, there are few variable cost also associated with the HR software. Few variable costs include upgrade cost of hardware/software, extra training cost, ongoing maintenance cost, implementation cost and more. It is good to have knowledge of all the hidden cost and analyze them initially.

11. Demonstrate business case:

It is important to demonstrate a clear business case once the HR software has been finalized to be purchased. In order to do this, prove that by making use of the software cost and time are saved and it is useful.

A simple example can be that by making use of the software, you can prove the features that are associated with holidays, appraisals and absence are very efficient ones. By this way, more HR staffs aren’t required. also, the benefits are also more which leads to enhanced performance management and improved business planning. By this way, you need to gather evidence and prove a clear business case for investment.

12. Choose four to five vendors:

Another important tip to be followed in purchasing HR software is to go in for five or more options and then narrow down. Once your budget, requirement, and needs are identified go in for four or five options and choose the one you are satisfied with.

13. Research about the software company:

You must have pen down a list of companies that can offer you HR software that meets your requirements. As mentioned above you must have viewed about four to five companies and bring down to three or less. Price is a major factor that determines your decisions for the purchase of the software.

There are few other aspects also to be considered before getting to purchase the software. The software company is to be researched a bit before proceeding. There are few clarifications to be made about the company, find out the number of years they have been in this business, also find out the number of installs present.

14. Look into aspects apart from software:

Do not just blindly purchase software; there are many other aspects which are present apart from software. Few factors to be considered apart from software are training, services, support, and few questions are to be probed.

Try and get references from customers, visit them and ask their experience, ask them if they had faced any problems. Also, remember to ask the number of hours or months training and technical support will be provided.

15. Advice from seniors:

It is always good to seek advice regarding the software to the seniors in the organization. Before planning to purchase HR software makes sure to ask your senior colleagues about the issues and frustrations they faced and the kind of software that is needed today. They advise you keeping future business plans in mind and hence they suggest incredible software that can be of good use.

16. Having a good sponsor:

The other aspect to be focused on obtaining HR software is the sponsor. It is important to get hold of the right sponsor so that the project takes place which otherwise may lead to the roll-out of the project.

It would be better if seniors are sponsors as they can take up things seriously and are passionate enough so that everything regarding the project goes smoothly. For a successful roll-on, these people are considered important and hence any kind of investment from your side can hold off since these people are present.

17. Enhance your knowledge on HR software IQ:

The types of capabilities that HR software provides are many in number which the purchaser must be aware of. Apart from the requirements, this is an important step to be considered in purchasing HR software. There are a number of resources where you can run through plenty of questions which offers you lists of choices and types required for present scenarios.

It is good to perform a research covering up all the options that are available regarding HR software. There are many resources or tools where your requirements for HR software can be filled. The vendors monitor and review the questions and offer unique solutions. By this way, the purchaser is much more advanced than his present knowledge and can gain software with advanced core features. By this way, they can filter out unwanted software from their list.

18. Specify your requirements in detail:

In order to pick the right HR software, it may ask you to select your needs initially. In that aspect, the purchaser should be detailed in defining their needs for the software. It is vital to be more detailed so that you can conclude by choosing the right HR software required.

Usually, the needs of the organization for HR software would be integrated payroll, windows based, turnover reports, training management, ESS, report writing, salary grades, accrual and attendance tracking, job and pay history, ease of use and more. This is a usual list that is provided to the software vendor, you can add more details as required by your organization.

19. Formulate a detailed spreadsheet:

It is vital to have a detailed HR software requirements list with all the requirements which would be analyzed in the evaluation process. List your requirements along with the various vendors on the vendors to choose from.

You can also add columns to your spreadsheets such as price, time, implementation, purchase options, timelines and more to your list. During the evaluation stages checkout which option satisfies all your need and tick those options. By this way, you no need to struggle to find out the product that you require.

Popular Human Resource Management System Software:

Nowadays almost every organization is using HR software which helps them automate most of their tasks and responsibilities and save their time to monitor actual duties and responsibilities. This helps them organize their work in a modernized way, thus making it more effective and productive.

Though there are several HR software available in the market, we have listed here a few top and best HR software which can match any type of organizations be it small, medium or bigger organizations.

  1. ZipTiger Recruit
  2. Xobin Interact
  3. PeopleWorks
  4. Sage HRMS
  5. TribePad
  6. Saba Software
  7. ADP Workforce Now
  8. Zoho Recruit
  9. Planday
  10. Recruitee
  11. iCIMS Talent Acquisition
  12. SuccessFactors (SAP)
  13. Workday
  14. Zoho People
  15. BambooHR


These are a few tips which can be followed in order to purchase HR software. As there are multiple vendors available who offer HR software, following the above-mentioned tips can be a systematic way of research to find the appropriate product for the company. The purchaser can also find more references by sharing the message on on-line blogs, message boards, groups, forums and many more. Planning and contacting the references is also a good way by which you can get to know about the latest software.

Apart from this, there are many other resources which are available and can be researched in order to get more details regarding HR software. Purchasers who find purchasing HR software a daunting task can run through these tips along with online research to purchase perfect software.