There are many variations when it comes to HR software, and it may be a little overwhelming at first to try to find the right solution for your business. But if you carefully evaluate your options and follow the advice below, you’ll be able to identify the system that’s the best fit for your startup.
Here is an easy four-step process for choosing the right HR software for your startup.
1. Identify which HR features you want and need.
Conduct a review of your current HR processes, if your startup has any, and identify what types of features you’re going to require from your HR software. Since HR systems can vary in what features they include, this step can help you narrow down quite a few options right off the bat. Some common features you may want to consider are employee onboarding, secure document storage, time management, payroll processing, benefits administration, reports and analytics, workforce management, and compliance assistance.
When you’re identifying the HR features your ideal solution should have, be sure to consider which features you currently need as well as which features you may need in the future as your startup expands. If a system doesn’t match your current and expected needs, cross it off the list.
2. Test the software functionality and usability.
When it comes to HR software, the top-rated programs tend to be intuitive and easy to navigate. However, some software comes with a steeper learning curve than others. For example, systems that can be highly customized with workflow automations will likely take longer to set up and learn how to configure than those that come with only basic functionalities. One is not necessarily better than another; it just depends on what you need the software to do and how much training your employees will need to use it.
While free trials are rare in this sector, most HR software providers offer free product demos to show you what their platform looks like and how it works. Take advantage of these, as they will give you a better idea of the user experience. If the HR solution comes with a mobile app, you may want to test out the usability of that as well. Keep in mind that mobile apps tend to have limited functionality compared to the actual computer program. Make note of which programs have high usability and the features you desire.
3. Compare customer support.
How vital is robust customer support to you? For some employers, the availability of customer support can make or break a product’s usability, but for others, it’s not a big deal. If you’re a newer employer implementing HR software for the first time, there’s a good chance you’ll need a responsive customer support agent to help you implement and learn the program. In this case, look for a provider that offers businesses dedicated support representatives.
You’ll also want to compare customer service communication methods. Most HR software vendors provide some level of support by phone, email and/or live chat. Be sure to choose one that uses your preferred method of communication.
4. Evaluate rates and contracts.
As a startup, you’re probably working with a limited budget. HR software is an investment, but you still need to be realistic about what you can afford. Once you know what features you need, how many employees you plan to enroll and what type of contact terms you want, you can get quotes from your top HR selections to determine how much each vendor will cost, and then compare from there to see which company can offer the best deal.
If you’re unsure how long you want to commit to a particular software, you may want to look for a company that has monthly agreements as opposed to annual. Note, however, that this level of contract flexibility often comes with a higher cost per month.