Ask Yourself before
Investing in
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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