8 things to consider when choosing an HR system

Selecting an HR system is a significant decision that impacts an organisation's day-to-day operations and strategic development. The system must support both current requirements and future objectives. Below are eight key considerations to take into account before making your final decision.

1. Identify your organisation’s actual needs

The first step in selecting a new HR system is to determine what your organisation requires from such a system. It is important to identify the necessary functionalities in areas such as recruitment, onboarding, skills development and payroll management.

The chosen system must fit the organisation’s structure and target culture to deliver the desired results. It is also advisable to find out in advance what users expect, as different people may have different expectations of the HR system.

2. Pay attention to the user experience

A good HR system should be functional and user-friendly. As user experience is a crucial factor in everyday work, the chosen system must be intuitive and pleasant to use, in order to prevent frustration and resistance among employees.

3. Estimate the total costs realistically

The purchase price of the HR system alone is not enough to inform your decision, as it is important to consider the total cost of the new system. As well as the purchase price, you should calculate the costs of implementation, change management and training, as well as the cost of ongoing support and recurring licence fees. It is also a good idea to estimate the system’s ROI in terms of more efficient processes or better personnel decisions, for example.

4. Ensure scalability and flexibility

If your organisation has ambitious growth targets or international operations, the scalability and flexibility of your HR systems are particularly important. In such cases, the system must be able to adapt to changing business needs and support complex organisational structures, if necessary. Find out about the system provider’s development plans and investments, as these indicate the system’s future capabilities and ability to keep up with technological developments.

5. Consider integrations and data management

Your HR system is certainly not the only system you use, so it must be compatible with the others. A good HR system should offer versatile reporting and analytics tools, and its data should be compatible with the BI solutions you use. When transitioning to a new system, you will often need to cleanse and improve your data, so prepare for this in advance.

6. Choose the right system supplier as a partner

A supplier is not just a provider of systems and services; they are your partner. During the sales and demonstration phases, pay particular attention to the level of support and range of services you can expect from your partner in future. Asking for references and speaking to current or former customers will also help you to assess the quality of the service and the reliability of the supplier.

7. Ensure regulatory compliance and data security

As HR systems handle highly sensitive data, data security is an essential factor when choosing the right system. A good HR system complies with applicable data protection laws, such as GDPR, and offers robust security measures. Clear, role-based user rights management is essential for keeping data secure.

8. Plan the implementation process carefully

Implementation is the stage at which the functionality of the system is truly put to the test. It is important to understand the expected schedule and any potential disruption to normal operations. It is also advisable to assess the training that will be provided to the HR team and other users of the new system to help ensure a smooth implementation process.

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