Business, Technology

7 selection tips to buy HRMS software in 2022

How do you know which is the right HR software for business? A quick online search will result in hundreds of high performing HRMS software and selecting the right one can be overwhelming. 

If you are a MSME owner, or HR manager, or business decision maker, researching to buy HRMS software for your business, we have 7 helpful tips to get you started. 

Let us look at them. 

7 tips to find the right HR software for your business 

 Trends show that the MSME sector worldwide is increasingly adopting new digital technologies into business to streamline and automate processes. In India, while large enterprises are adopting advanced HR tech, MSMEs and emerging businesses are turning to compact HR systems for small businesses for efficiency, compliance, and cost reduction. 

This naturally has given rise to a growing number of Core HR solutions being launched into the market, each offering unique features and functionalities that address key MSME pain points e.g., recruitment, onboarding, remote attendance management, payroll, performance etc. Let us discuss some of the key checklist items that you should consider before selecting a HR tool for your business.

1.  Outline the business problem the HR tool will solve

The first thing to identify is the business problem you are facing and how a HR platform will help to solve it. Your problem can be temporary or recurring. The key point is that whatever problem you are trying to solve, it must be: 

  • Aligned to your overall business goal 
  • Specific to your business 

For instance, if your business problem is tracking remote employee attendance and payroll (especially for on-field agents), then you need an HR payroll and attendance management software that will allow you to track it. Solutions like greytHR for instance, allow users to update attendance using geo-tracking from remote locations to avoid proxy attendance. It generates payslips seamlessly with details on tax, PF, attendance etc. to keep the business compliant. Employees can login and download payslips and update details to save time and stay efficient. It also generates reports for HR to understand patterns and manage employee leaves and attendance better. 

2. Involve key stakeholders in the decision-making process 

The next tip for selecting a HR solution in 2022 is to identify the key stakeholders in the decision-making process. As the business owner, while you may have the final say, consider seeking the feedback from other stakeholders. This may include: 

  • The HR Managers responsible for HR processes in the company 
  • The IT Head responsible for software integration, data security, technology adoption and more  
  • Department heads and reporting managers responsible for employee performance 
  • Selected employees who would be the end-users of the solution 
  • Finance and legal teams responsible for ensuring compliance and cost 

Each of these stakeholders will have a different perspective and priority. Their collective feedback will be instrumental in selecting the right tool for your business. 


3. Research the market for HR software recommendations 

Research the market when buying a HRMS solution. Ideally, plan a timeline for research. Based on your business needs, you can allocate 2-3 weeks for 2-3 months to research. The important thing is that research will help you to understand the products available in the market, compare features and pricing, and shortlist options. You will still have to contact the vendors and take the process ahead. 

Consider the following ways for doing research:  

  • Ask business associates and mentors for references – This often works as it comes from actual users 
  • Check online reviews, ratings, and feedback – This will provide details on features, functionalities, pros-cons, performance, cost, service, support, etc. 
  • Browse a software marketplace for HRMS solutions – This will save you time and effort as you can learn about a suite of HR solutions in one place 
  • Search online – This will help you gather information across different technology websites, review sites, social media, etc. 

If possible, try to learn which software your competitors use. While this is not always going to add value to your selection (your business might be trying to solve different employee management challenges), it will familiarise you on the trusted solutions available in the market. 


4. Shortlist HR software vendors 

Once you have researched for reliable HR systems and solutions, the next thing is to shortlist HR software providers that offer solutions that meet your business requirements. 

You can initiate the first conversation to learn about the product, features and pricing, installation process, and other details. This will help you decide if you need a product demo or look at alternatives. 

Note – You can either directly approach the software provider via their website, or connect via a third-party service provider.   

5. Request product demos 

When evaluating whether a HR application is good for your small business or not, product demos are vital. Most product demos are detailed and will provide necessary information to assist the decision-making process. 

With the pandemic affecting mobility, most HR software product demos are today conducted online with little need for F2F visits. Moreover, with more software being offered on-cloud basis, video-based product demos are more convenient and even effective. Remember to include all necessary stakeholders in the product-demo stage. 

Product demos can be offered as: 

  • Pre-recorded video-based product demos – Recommended for understanding the product 
  • Live video-based product demos – Recommended for discussions and Q&A 


6. Negotiate pricing and customisation 

When you are able to shortlist 2-3 HR software for consideration, a discussion on pricing begins. Cost of HR software is important and all businesses, large and small, must be able to get ROI from it. As such consider multiple pricing points before selecting a HR software for business. 

Ask the following questions: 

  • What are the various plans offered – One time payment, subscription based, pay as you use model etc. 
  • What is the refund policy – 14 day or 1 month refund, no refunds, etc. 
  • How does pricing change based on number of users/licenses – Important for businesses that are growing and have plans to grow teams in the future 
  • How does value-added features affect pricing – That is, features in addition to the base package 

greytHR payroll solution for instance comes with different pricing plans that businesses can select from based on their requirements. They also offer add-ons to base packages (e.g., facial recognition, multi-company support, geo mark, expense claims management etc.) that can be clubbed with base packages. 


7. Discuss HR software implementation   

And finally, it comes to how the HR software is implemented in your business. If you are selecting a cloud-based HR software, implementation time will be shorter, the process will be smoother, and access will be faster. In most cases it also gives you ease of access anytime, anywhere and is multi-device compatible, including mobile. 

For instance, payroll software like greytHR can be accessed via mobile and web. This makes it easier for employees to update attendance regularly. 

On-premises HR solutions may require installation of additional software or hardware.  

When finalising a HR system, check the following: 

  • How easy is it to instal and use the app?  
  • How much time does it take to instal?  
  • Does it simplify the existing HR process? 
  • Does it require additional software/hardware integration? 
  • Can it be accessed via mobile phones? 
  • Will training be provided? 

 Getting started with HRMS solutions in business  

As a business owner, accept that any new technology will face initial resistance. Your employees will be apprehensive, and often will find it complex to adopt new technology. Give them time. 

There is no good or bad software. Each software aims to solve few key pain points and supports few others. You need to evaluate and find a software that solves your current problem and has the capability to be scaled. In certain cases, with your MSME growth a single tool will prove inefficient, and you may have to invest in multiple HR software to address diverse needs.  

The goal of getting a Human Resources Management System is to bring efficiency and simplicity. And based on the organisational needs, the tool should be able to deliver the same.