No matter what industry you’re in, you need an efficient human resources process in order to reach your business goals. Too often, however, a continuously evolving workforce creates a multitude of administrative tasks that eat up the time of HR managers, keeping them from the valuable work of strategic innovation that requires their unique talents.
HRIS software delivers workable solutions to your business, but it’s not always easy to find the right system. As you begin to research your options, keep in mind these tips for analyzing your software quote.
Before You Start Shopping
The market offers a wide variety of software options, from comprehensive suites that will keep your entire HR department running smoothly to small niche applications designed to fill in gaps in your current system. Before you start sifting through systems and providers, evaluate your company’s needs so you’ll have the information you need to make a short list.
- Do a business needs analysis—Look at your company’s current system to define usability, scalability, and security needs. Talk to those who will be working with the new system about workflow management, reporting needs, and any third party applications that will need to be integrated.
- Create your requirements list—What features does the new software need to incorporate? Are you looking for a large system that can handle your entire HR process or do you want to purchase specific add-on modules? How many people will be using the new system? What current procedures will the software need to incorporate?
- Make your short list—Use the information you have gathered to make a short list of providers and software options that meet your needs. The providers will want to talk with you more specifically about your needs and requirements in order to give you a detailed quote and schedule a demonstration.
Analyzing the Quote
Once you have quotes from all the providers on your short list, take a closer look at the details of each one. Asking these 8 questions will help you make your final decision:
- Is it SaaS or Onsite? Software as a Service is often a good choice for smaller businesses that don’t have the infrastructure to support a comprehensive system in-house. They can also provide significant cost savings since they eliminate many of the additional costs associated with the purchase of such a system. However, larger businesses may not realize the same breadth of savings since they often have the infrastructure, hardware, and maintenance specialists already in place. In addition, cloud-based solutions may not offer the degree of flexibility required by a large business with customized processes.
- Is the pricing calculated per user or per module? If you are purchasing a small number of modules, module-based pricing may be the better choice. For most businesses, however, user-based pricing is more cost effective, especially if you need a full-function package.
- Are add-on products available? What is the fee? During the demonstration, the provider should show you any additional add-on functions or capabilities of the system. Ask what the cost is per add-on, and make sure your basic requirements will not be calculated as add-on fees. In addition, be sure future add-ons will integrate seamlessly with the software.
- What additional fees will be assessed? How does the provider bill for implementation and integration into your current system? Does the quote include a detailed breakdown of hours and services that are included in the fee? Make sure you know exactly what they will provide so additional fees do not surprise you later. Also, ask about monthly or annual maintenance fees and services.
- Is data migration included? Is data migration automated? Is it included in the quote or will you be charged extra? In some cases, it may be more cost effective to hire an intern who can enter data manually.
- How do you handle customization? Is customization outsourced or handled directly by the provider? If it is outsourced, does the third party provider have the credentials needed for source code work? Will they handle future upgrades as well? Is customization the best way to make the software compatible with your current system, or would it be better to upgrade your processes?
- How much training is included and what is the cost for additional training hours? Most providers will include a specified number of training hours in the quote. If the number of hours is very low, you will almost certainly need to pay for extra training. Even if the number of hours seems reasonable, ask the provider how much they charge for additional hours. Plan for more training than you think you will need.
- Do you charge separately for project management? Some quotes will include a project manager, while others will assess an additional fee. Even if the provider charges extra, it can be extremely helpful to have an experienced individual overseeing the set-up and implementation of your new software.
At compareHRIS.com you can access our complimentary software selection tool to identify and rank the features that are important to you, then simply request information from the top ranked providers.
As you look at each quote, make sure the provider has given you an itemized list of fees and costs. If the quote is bundled, ask for specific pricing for each service. This is the best way to remain within your budget and avoid surprise costs down the road.
