Shopping for the right HR software for your business is not unlike dating. But with no apps or online match sites for human capital management (HCM), how do you compare and sort through all those vendors vying to win your company’s heart?
According to a Bersin by Deloitte study, 61 percent of HR professionals plan to replace their HR software within the next 18 months. If you are one of those professionals getting back on the market, here are three tips to get you started:
Tip 1: Find the total package.
Are you unsatisfied with your current HR processes? If your existing provider is unable to meet all your needs, it’s time to trade in that zero for a hero.
Your dream HCM vendor should be able to meet all of your desires … as related to the employee life cycle, that is, which includes payroll, talent acquisition, time and labor management, HR information management, talent management and benefits administration.
Before committing to a vendor, be sure to understand the difference between a single-source solution, aka Boris, and a single-application solution, aka Jeff. Only one truly can be the total package.
Boris, the single-source solution, provides your company a set of multiple programs integrated together, which Boris may or may not have developed himself. Integrating multiple, third-party programs can lead to your employees entering information, usernames and passwords over and over again. Not to mention, Boris has given you the challenge of products and programs not syncing correctly and the never-ending present of frustrating reporting limitations.
Jeff, on the other hand, offers a single application. This means employees only enter information one time. Repeat: one time. All data updates in real time across all products and programs. Reporting is comprehensive and consistent. The data workflow? Seamless.
Who would you rather see again? Boris or Jeff? No matter who you choose, don’t settle too early; you only want to implement or switch technology vendors if it’s going to make life better. And we have two more tips to consider.
Tip 2: Good manners are essential.
Are Boris and Jeff thoughtful, insightful, self-reliant, analytical and compliant with the ever-changing state and federal employer regulations? During your vendor comparisons, be sure to remember that the best HR tech provides one database of employee records to help you:
- be more efficient with process automations that reduces paperwork and manual data entry
- produce insightful analytics that track and report on your company’s unique workforce trends and performance catalysts critical to managing labor costs and implementing growth
- empower employees with the ability to self-manage transactions and find answers to questions, which reduce the demand on payroll and HR staff
- reduce exposure by automating compliance processes and accurately tracking and reporting on data critical to meeting government-required regulations
If the vendor courting you seems to be the total package and has impeccable manners, then congratulations! It sounds like you’re on the path to true love. But how well do you really know this vendor?
Tip 3: Perform a background check.
Why be in a relationship if not to be cherished and made to feel special, safe and secure? In this day and age, you can’t be too careful about who you have dinner with or with which vendor you decide to share highly sensitive confidential records.
Even though one may have caught your eye, do your due diligence. In the past few years, federal officials have prosecuted at least two dozen payroll firms that allegedly pocketed more than $300 million in taxes from their clients. Just as you wouldn’t get into a car with someone you don’t know, only share your payroll records with a vendor that has a solid reputation, financial stability and staying power.
Consider this due diligence checklist:
- audited financials
- long history of profitability
- bonded for a minimum of $100 million
- SSAE 16/SOC 1 audit report
- ISO 9001 certification
- proprietary software
If your Jeff or Boris has passed these three checkpoints, then you are on your way to finding your HCM soul mate. At this point, we hope to have steered you away from any shady characters who are only after your money, not your best interests.
Want four more tips? Then sign up for our free webinar on “Finding Your Soul Mate in Human Capital Management”.