Human Resource is a complicated field to manage. Managing a crowd; wherein each individual has a different background, origin, ethnicity, religion, gender, and beliefs; is not everyone’s cup of tea. The population in Asia is far more diverse than anywhere globally, just based on religious factors. The HR managers have to calculate the payroll and maintain its accuracy for each individual. Doing this manually every month becomes lengthy, monotonous, and, in many cases, erroneous. Mistake and unlawfulness in these practices may lead to miscalculation of payroll, resulting in employee dissatisfaction.
The businesses have the option of automizing the HR processes to avoid such challenges. Many companies provide software to manage human resources to assist the organizations in overcoming these issues. If your company has a manual HR management system and wishes to shift to an automated system, you have a wide range of options available. However, confusion arises when it’s time to land on one choice. Which solution should you opt for?
List of factors one should consider while selecting an HRMS Solution
As mentioned above, the dilemma here is that from various companies providing HRMS software in India, which is “the one” for your organization? To help you outclass this dilemma, here is a list of all the factors you should consider to find the perfect software match for your organization’s HR needs.
1. Cost and returns
A company’s basic instinct is to check the price tag before investing in any product/ service to see whether it would be within the company’s financial reach or is it not as budget-friendly as you might think. The same thought process goes with the selection of the software. How much does it cost? Are there any hidden charges? Does the software provide additional functions or just the basic ones? These things need to be given a thought.
Finance is not concerned with just the initial cost of the software. The additional benefits and the returns on investment (ROI) add up to form the final value of such investment. Some software may cost a fortune at the time of purchase, but when looked upon from the ROI point of view, returns from this investment would spread over a more extended period. These returns may be less in the case of other software that are relatively budget-friendly.
However, depending on the size and budget of your business, it would be beneficial to choose a budget-friendly software that provides relatively high ROI. The fact that automation would also result in cost reduction as it automates the HR management should contribute to your decision-making.
Not all businesses are the same. HR automation is a requirement for businesses of all sizes. Depending on the number of employees who work for your organization, you may want to make sure that the HRIS solution you install is capable of functioning for all those employees. For example, if your organization has a thousand employees, getting an HRIS solution compatible with five hundred employees would not be the right choice. Similarly, if your organization has a hundred employees, having software compatible with a thousand employees would mean over-spending on automation.
It is also beneficial to consider the expansion of the organization. If your organization expands in the future, would your software accommodate the increased number of employees? Almost all the SaaS providers offer the option of expansion. This system is beneficial for your company because you have to pay for the number of employees currently working for the organization.
3. User Interface
The users of the software are ordinary people, not profound in the field of programming and coding. Thie expertise is in managing the people. Keeping this fact in mind, you should prefer the software that provides a user-friendly interface. It should be easy to use and understand.
Almost every SaaS comes with a mobile application. Your employees would use this app. Due to this sole reason, it becomes all the more important to have a simple-to-understand and manoeuvrable interface that is free from confusion.
4. Trouble-free integration
Human resource management does not consist of a single task. It consists of different modules that manage an individual’s journey in the organization, starting from their recruitment to their retirement. While choosing the software, you must ensure that the integration among all the functions is smooth and trouble-free.
Having to face difficulties in integrating the functions or having only a few functions available is not an excellent impression for a SaaS provider. Moreover, choosing such software would only mean increased costs for the company. It is recommended that one review and understands the integration of the software before investing in the same.
As mentioned above, human resource management consists of functions like onboarding, payroll, attendance management, leave management, retirement benefits, and a lot more. It is advisable to have software that provides all these functions on one platform rather than having different software for each of these functions. The latter option would mean unfruitful integration and increased costs.
Having every function managed on the same platform is beneficial to your company as the integration is effortless, and the system flows smoothly. Apart from that, having all the functions automated (instead of some chosen ones) gives you error-free processes and results compared to the manual, erroneous system.
6. Seamless Transitioning
Transitioning refers to moving from a manual system to an automated one. The software must take over all your manual processes seamlessly without denting the current HR processes. It is not worth an investment if your HR managers have to start the whole HRMS from zero. The software must be able to carry all the employee data and transfer it to an online platform without much hassle.
7. Reports and analytics
The purpose of having the work automated is to avoid the tedious task of making the reports and analytics by hand. When the reports and analytics are made by hand, they take a lot of time as the HR manager goes through all the details to prepare a thorough report. Even so, the chances of human error hold its ground, and there is never a 100% accuracy. Moreover, this method does not prove helpful when the reports are required in an instant.
The software you choose shall be able to give you various reports instantaneously and in the desired formats. This feature quickens many other processes that depend on such analytics. Performance measurement, appraisal, etc. are some of the examples that make use of such reports.
8. Pre and after-sale service availability
Knowing all the above factors is not enough if the SaaS provider does not help you get familiar with the software. The services that it provides in scheduling a demonstration, giving the training to your HR managers, installing the software to transition into automation, etc. are the pre-sale services that the SaaS provider should impart.
The services do not end with the installation of the system in your organization. There are times when the HR managers are lost while using the software and need guidance, or there may be some technical issues faced by them; in that case, the SaaS needs to provide quick answers and solutions to them. Failure to receive such instant services may result in the hampering of your HR processes.
In a nutshell
Just choosing any HRIS solution from the market may not always be a feasible option. You put a lot of consideration and effort into designing the company’s infrastructure and hierarchy; your HR processes are just as important and deserve just as much thought as the former. By considering the factors mentioned above while purchasing your HRIS solution, you can indeed find the perfect match for your organization’s needs.
Divyang Metaliya is a Business Consultant working with factoHR. Apart from managing and improving business processes, his hobby is to spread his vast area of knowledge to the people out there. He loves to create content that is innovative and engaging for the readers.