HRIS.pngIncreasingly, companies are turning to human resource information systems (HRIS) as a way to streamline payroll, manage HR data, meet regulatory compliance and integrate essential employee processes. However, as implementation of a solution becomes a strategic move that affects the entire organization, there’s much more involved with making the decision. Finding an HRIS platform isn’t as simple as buying technology to make payroll and benefits management easier. It’s an investment in the opportunity to improve efficiencies and boost productivity.

With such a mammoth project at hand, it’s helpful to know the proper items to put on your evaluation checklist. Here are four key steps as you’re choosing the right HRIS for your company.

1. Initial Considerations and Needs Assessment

It’s important early on to determine who will be spearheading the selection process, whether it’s the in-house HR or a consulting firm. Smaller HR departments that are busy with daily operations might need some help from professionals, so hiring an expert may be a wise choice.

The initial stage involves determining organizational needs as well. HR managers certainly have a wish list of features and functions, but there’s also a budget to consider. Companies just getting started with HRIS might start small with integrated payroll or build time and attendance tools onto their existing system. Because benefits administration is growing in complexity and promises to be a challenge, this might be a consideration as well.

2. Evaluate Vendors Suitable for Company Needs and Goals

Now that you’ve identified requirements and future needs, it’s time to work on a ratings system to assess the vendors that offer suitable HRIS. Create a list of specific requirements and include desirable features. Then, check off whether different vendors and their products fit the bill. Some items might include:

  • Integration with existing payroll system
  • A combined HR/payroll package
  • Performance management functions
  • Time and attendance monitoring
  • Reporting capabilities, including custom
  • Job and pay history
  • Benefits administration
  • Employee self-service
  • One on one support

3. Demonstrations

Once you’ve narrowed down your list of potential HRIS vendors, you should start scheduling demonstrations of their products. Select 3-5 companies to do an onsite demonstration if possible, though an online demonstration is a common way solutions are showcased. Use the list of requirements that you created during Stage #2 to ensure that an HRIS meets your needs and prepare a list of questions in advance. You might consider assigning a value to each of the items on your checklist so you can rate solutions when you’ve seen all demonstrations

4. Final Decisions

As you’re coming closer to a final decision, it’s time to do reference checks and talk with the vendor’s other customers. Then, reconvene your selection committee for one final walkthrough of your requirements, concerns and questions. When you’re down to just two choices, bring out the scorecard to see how well each company compares to the other. You should be able to reach a HRIS decision at the conclusion of this phase.

Hopefully, these steps will help guide the evaluation process as you’re looking for an HRIS that suits your needs. At Paypro, we understand the importance of implementing robust solutions that focus on each essential HR function, from payroll and taxes to benefits administration and ACA compliance. Contact us and let us tell you why our HRIS meets all your business objectives.