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3 Effective Tips for HR Software Selection to Help Your Business Go the Distance

HR Software Selection

On average, 8 out of 10 HR decision-makers have regretted their choice of Payboy HRMS system.  Decision-makers felt their chosen HR software failed to live up to their expectations, and has not contributed a positive effect to their business. This mostly happens not because there is a problem with the HR software itself, but because of some flaws on their initial software selection process.

Small businesses could not afford to make any HR software-related mistakes; it would be a significant waste of time and money resources. The following tips would ensure you make the right HR software selection decision.

Tip 1: Invest to Save on Administration Cost

It is very alluring to choose the cheapest HR software available, regardless if it lacks some features. Affordability is king, but you should never sacrifice quality in exchange for saving a few cash.

Investing in a decent HR software offers time-saving and cost-effective benefits to your business. HR software can eliminate the costs of mailing payslip, and it can manage applicants more efficiently. Also, it could save you time spent in searching for employee data and files.

Other less tangible benefits of HR software include:

Date Security

HR software offers you a robust security system that guarantees the limitation of access on restricted files. It ensures that employees can only share and access data that is intended for them, and that confidential data wouldn’t end up in the wrong hands.

Avoid Compliance Fines

This software offers accurate and updated data and stores them in one setting. That way, it would be easier to report all the data to the regulators, and simultaneously keep up with specific compliance laws.

Tip 2: Prioritize must-have and nice-to-have software features

Before choosing an HR software, you must first identify what system would be used to determine the specific functionality needed. You need to have a realistic, precise, and clear objective in mind.

According to data gathered from small-to-medium-sized businesses, one important must-have HR software feature is employee tracking. It encompasses applicant tracking, time and attendance, and payroll.

If you have already determined your objectives and goals, then based your must-have and nice-to-have functionality on it – prioritizing those important ones.

Tip 3: Ask for Data Integrations and Workflows

You may be prioritizing HR functionalities at the moment, but your overall goal is to incorporate application, time and attendance, and payroll software, semi-annually or annually. It is desirable and more manageable if the HR software has modules embedded in it to solve these matters.

To comply with some payroll regulations, you require data from both your payroll and HR system. It is recommended that your HR software should integrate such functions; otherwise, it would mean a lot more manual for you.


Generally, the HR software selection process could take more than a year to accomplish. Consider integrations and thoroughly plan and put enough thoughts on the essential functionalities and features you specifically need for your HR software.

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