How to Choose (HR) Software...
So, you finally have the go ahead to purchase a shiny new HR system (or indeed any other business application) and you suddenly realise you have no idea how to go about it - where do you start and how do select from the seemingly huge range of suppliers?
Most advice on this topic will advise you to start by writing a Specification of Requirements, Invitation to Tender (ITT) or similar which can be given to potential suppliers for their written responses. If you believe in this approach then you can stop reading here!
1. Find out What's Possible (the Education phase)
In my view, your first task is to actually find out what is possible (given your budget - you do have a budget in mind, right?). The best way to do this is to select a range of suitable suppliers (web searches, recommendations etc) and ask them to visit and demonstrate their product's strengths. Make careful notes because it is VERY easy to get confused about which systems do what (which can lead to disappointment later).
Before doing demonstrations, most decent suppliers will want to have an idea of the areas you want to cover and the business issues you are trying to solve - be open with them and you will get the most from the sessions. Be wary of any suppliers who don't try to understand your business before a demonstration - if they don't understand now they probably never will!
After a range of suppliers have shown you what they can do, you are now in a position to build a proper list of features you are looking for - and if you want you can rate them and come to a decision about a shortlist for further review (maybe 3 suppliers).
2. Evaluate your Shortlist (the Comparison phase)
This is the stage where you produce your ITT, isn't it?
If you are in an industry where you have to have competitive tenders from a range of suppliers then, yes. If this is the case, the next section is for you...
2.1 Using an Invitaton to Tender
ITTs come in many shapes and sizes. Some are tick lists (with comments sometimes). Some are huge lists of narrative questions. Almost all of them ask suppliers whether their solutions can do something. The reality of this approach is that almost all decent systems (and certainly those on your shortlist) will be able to meet your requirements and so suppliers will all basically answer YES to almost everything!
I expect you've spotted the problem - how to choose between suppliers who have all given the same positive answers?
The answer is to ask different questions!
Instead of asking "Can your system calculate holiday entitlements for part time staff, including those that change their hours during the year", try asking "Please describe how your system caters for the calculation of holiday entitlements for part timers who change their hours during the year (with screen images)?"
Note that this approach is much more work for both you and the supplier and the answers will be much longer - so only use this approach in areas which are really important to you unless you want to read hundreds of pages of responses!
I am sure that you can see that this approach will highlight differences between systems and show you where some may be cumbersome of unworkable.
2.2 Using Scenario based Demonstrations
You will certainly want to have another look at your shortlisted suppliers and, whether or not you use an ITT process, you will want to be able to differentiate between them in key areas. Just asking for another demo will likely just be a repeat of your first experience (although you may be better educated and ask better questions).
A great approach is to ask suppliers to demonstrate how their systems deal with a range of typical scenarios - for example, how to handle your appraisal process, how to take a person from application through appointment and induction or how your own letters can be produced for your maternity process. PLEASE give them warning of this and allow them time to prepare (and allow them to discuss and clarify points with you) - the extent to which they prepare a great demonstration will tell you a lot about how keen they are for your business and their understanding of your requirements as well as the capability of the system!
3. Taking up References
NEVER buy a software system of any value without taking up references in some way - this could be in the form of online testimonials and reviews or, better still, actually talking to users. But what to ask?
Key issues for references revolve around the relationship and support offered by the supplier, are they responsive, do they listen to user requests etc. Of course you also want to know whether the product performs well and is reliable but don't necessarily expect a demo (if you visit). This is where you find out if the supplier lives up to the image portrayed by the sales team.
4. Making a Decision
You've had the demos, spoken to customers, had the quotations - it's time to decide!
This, I'm sure, is where you will expect me to say that you should add up scores from demo and reference checklists and award the order to the highest scorer!
In reality, my experience from 25+ years in the HR software business is that where people use scoring systems they are usually (sub-conciously) used to back up their subjective decision - in the end, despite any formal processes, you will almost certainly buy the system you actually want so why not go with the flow, using all the stages above to highlight any showstoppers and allow you to get under the skin of the suppliers.
5. What comes next...
My next post will be on the process of implementation and the emotional roller coaster that usually becomes!
If you would like any assistance choosing your next HR solution then please get in touch with me and I would be happy to help.













