Questions to Ask Before Buying
HRMS software can be a strategic tool capable of taking a
company one step higher than its competition or, on the contrary, it can turn
into a nightmare for those in charge of managing it.
To give you some suggestions of the variables that you should
take into account when purchasing software of this type, I am going to answer
the key questions that you should consider before and during the purchase
process.
1. What is HRMS software for?
It depends on the type of software, as there are three types
that are: HCM (Human Capital Management), HRIS (Human
Resource Information System) and HRMS (Human
Resource Management System) and each of them serves a different purpose.
Before starting the search process, you must answer these questions: what
do you want the software for? What modules do you need? and
how many people will use the tool? The recommendation is to buy software
that fully meets the needs of the company.
2.
What options are there
for acquiring software of this type?
There are three options for acquiring human talent management
software:
·
Custom development from scratch
·
Licenses (On-premise)
·
Cloud rental
This last option is the most competitive in the market due to
its ease of use and access and its price.
3.
What is on-premises and
cloud software?
On -premise software has to be installed on a computer, while in the cloud everything is online. On-premise is more expensive, lacks flexibility and adaptability. Almost no one uses it because you have to physically install the software on the computer, so if you change computers or get damaged, you have to call the provider to reinstall it.
4.
What should you ask
about software?
There is something very important to ask and that is where the
information is stored because there is a risk that something could happen to
the servers. Hopefully the servers are in very good alternatives such as
AWS, Rack space, Microsoft and Google. The difference in prices and
quality of these cloud providers is enormous
compared to local providers and there are some that are very cheap and can be
risky.
5.
Who should participate
in the purchasing process?
The HR area, and must define very well what it wants from the
process and then rely on the technology area (IT) in the technical aspects that
the platform requires for its use, but its advice is essential especially in
the SLA ,
which it is the most important part of a human talent software contract.
6. What is the SLA?
SLA stands for Service Level Agreement, in Spanish service-level
agreement. That is where it is specified what the supplier
will deliver at the end of the process and the level of service that the client
will receive to ensure compliance with basic quality standards.
7.
What elements cannot be
missing in a human talent software SLA?
The SLAs must contain the service parameters related to the
resolution of problems, response time to requests and performance of the
platform, among others. In addition, you should mention the vendor's
action plans in the event of server outages, database problems, and failure to
deliver reports.
A key point in the SLA is the
definition of roles in the platform: what can collaborators and bosses do in
the software. It should be clarified what the customer can do and what the
supplier will be responsible for.
8.
What happens if the SLA
is not met?
The supplier and the client must reach an agreement on the
seriousness of the errors and the respective penalties that must exist in the
event of any breach.
9. What aspect has a lot of
influence on the purchase decision?
References and, in fact, this applies to the purchase of any software. If I were in a client's shoes, what I would do would be to ask the provider for a list of 10 or 15 reference clients who have been using the platform for more than 6 months and randomly call three or four. The ideal is not to ask for few references because surely clients with better opinions will pass to you.
10.
Why is it important that
the software is scalable?
If software is not scalable, it is going to have problems as new
customers use it. I would ask the provider what is the concurrency of
their platform (how many people at the same time the system supports).
11. Can custom developments
be made in the HRMS software?
Sure you can, but the ideal is not to do them. It is
advisable to use what the largest number of customers has used because the
probability of software failure is very low. Whereas, if one starts to
request custom developments, the probability of failure is high. It is
more advisable to use what already exists.
12.
What should be the
implementation times?
It depends on the platform, but one would expect them to be done
through bulk uploads, so it should be the same time for a large company as for
a small one. I would say that on average between 3 business days and 2
weeks maximum.
13.
What security guarantees
must providers give to the handling of user data?
Normally, you must have an HTTPS protocol so that the
information remains encrypted.
14. What do companies receive at the end of the evaluation process?
Individual, general and area reports should be delivered to the
company. It is important to define from the beginning which reports the
client expects to receive. Expectations should be clear before starting
the process and there should be no surprises.
15.
How to measure the
effectiveness of the process?
The HR department should define its metrics and monitor them
before, during and after the process. With this, in the end you can take
these metrics or that ROI (Return on Investment) that generated the use of the
software to the management.
16.
How do you know if a
provider is suitable?
Typically the prices of human talent platforms depend on the
size of the engineering and support teams. That is why you have to be
suspicious if the price that suppliers are offering is below the average.
Two variables must be taken into account before hiring a
provider: web traffic and work team. To check
the traffic, there is a page called Similar Web from
which you can check the traffic of a page.
As for the team, this can be reviewed on the company's page on LinkedIn. Be
sure to ask about how the company's team is set up, how many active customers
they have, what size, and what industries to get an idea of their support
capacity and the robustness of the software.
17.
How do I know if a supplier has the necessary equipment to
attend my process?
Hiring suppliers with very small teams is not recommended. If
a development or support engineer becomes ill or leaves the company, the
operation can come to a complete halt. Small providers usually do not have
a plan B for these contingencies and tend to take time to address them.
18.
How to know the size of a supplier?
One option is LinkedIn. Normally there you can find the
number of employees who are related to the company.
19. There is usually a very
large price difference between providers. How to handle it?
A technology company with a very small team often has
below-average prices. If the HR department hires them, it assumes the
consequences that a serious contingency in the software can bring for the
process and the reputation of the department itself.
It is best to assess not only the price but also the reputation
of the company, its adaptability and the type of support it provides.
20.
Should the tool be self
service?
The Latin American reality has indicated that although the tool
is self service, the company will always require support. Either because
the client forgets how to advance a process in the system or because something
new is requested. For this reason, the support provided by the supplier
will play a fundamental role in the success of the process.
21.
What internal factors of
the company are related to the success of the project?
Top management must be committed to the process in heart and not
in word. On the other hand, there must be a person within the HR team who
knows how to use the tool and has the time to appropriate the tool.
22.
Can the software be
integrated with other platforms?
In the case of medium and large companies, the platform should have APIs (bridges) with other platforms. It should be possible to connect with the software the internal directory of employees (intranet), payroll or with an ERP (Enterprise Resource Planning).
In the end, the
recommendations are the same before acquiring any software: review the
supplier's references, consciously define what is expected of the software and
rely on information from various sources so that the purchase decision is
objective and pursues truly strategic purposes. .
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