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Checklist for choosing the Best HR Software blog banner

The success of any size of business exists in creating value most cost-effectively and hence achieving high returns. This involves building a high caliber and competent workforce. Before reviewing the Best HR Software checklist, let us see how the need for software has become an indispensable part of successfully running corporations over the years. 

Before the evolution of technology, most of the HR activities were performed manually consuming a lot of Human time and effort. This led to paying more emphasis on maintaining operational records rather than serving the overall strategic role of managing human resources.

Human Resource Management has seen revolutionary growth in the past decade. The invasion of Technology in managing Human Resources is defining the work culture of most progressive and driven enterprises. 

What is HR Software?

Human Resource Software is a technology-driven intervention. It is a workforce management system that enables us to drive customizable operational solutions for Human Resources and hence improve productivity. Most of the software has a user- friendly interface that is simple for the employees to apply and use.

So, what problems an HR software solve? Let’s find more

Problem solved by the HR Solution software

HR Software is a key to improve the management of employee data through streamlining record maintenance and better communication between the employees and the HR department.

Better Work efficiency by helping in organizing the data management system

The Best HR Software has multiple modules to handle different operations of HR hence making record handling much simpler and organized. Any information that you want is just a few searches away.

Error-Free Data Generation

The human resource software systems have multiple report dashboards that can be used for strategic decision making. Unlike the manual way of creating lengthy excel sheets, error-free report analytics can be easily created.

Replacing voluminous paperwork and creating a centralized employee databank

Gone are the days of huge piles of paper and files to maintain employee records wherein the HR Office ended up resembling more like a warehouse. The HR software equips you with a centralized databank of employees providing uploads of their documents, offer letters, appointment letters, etc. You can see and download all the required documents of any employee across geographies with a few clicks.

Increased Employee Engagement

These applications give a user-friendly interface providing equal engagement of employees wherein important messages or announcements through the HR department or employer can be directly shared.

Better Time Efficiency

Time efficiency is one of the critical benefits of human resource applications to manage people, processes, and procedures. You can engage in strategic initiatives for creating a good work culture instead of consuming time in administrative tasks.

Now with a plethora of HR software available around, window shopping will not help. The million-dollar question is;

How to choose the ‘Best HR Software’ amongst the get-at-able? Most of the HR software available in the business today offers a range of functions like Attendance Management, Applicant Tracking System, performance management, recruitment, etc.

An HR Checklist is important at this stage when you are preparing to set up the HR Software for your organization to know your business needs and identify what exactly will be befitting to your requirements.

Why does your organization need an HR Software Solution? What are my key Expectations from the ‘Best HR Software’. How is it going to solve my current HR difficulties?

This question needs to be answered and analyzed multiple times so that you know what goals are expecting to meet. Which one will be the Best HR Software solving the purpose.

A detailed ‘Need and Gap Analysis’ of the existing Organisation structure is required to identify the existent gaps that you want to address with the support of HR Software.

Choosing the Best HR Software will depend on a host of factors like Employee Headcount, industry, employee type, and budget. Here is a quick checklist while you are getting ready to evaluate the Best HR Software:

Checklist to choose HR software

  • Know the various HR software around. Check with your peers what they are using to have a recommendation for various systems and investigate them. What works for them may not work for you.
  • Create a checklist of your requirements on a spreadsheet to have a clear discussion with software providers.
  • Have clarity on the budget as to how much you can spend so you can shortlist the vendors accordingly.
  • Create a team that should be involved in evaluating the various HR software for their effectiveness and scope of implementation.
  • Seek proposals from various vendors that are meeting your requirements to the closest.
  • Spend sufficient time in evaluating the software through arranged Demo Sessions.
  • Review and compare to know which one fits the best to the model of your organization. Match your specification requirements and ask questions for better clarity.

With the readiness to decide the Best HR Software for the organization, its time to evaluate and compare various platforms. Here is the capability checklist that you can add to the points for investigation :

With the readiness to decide the Best HR Software for the organization, its time to evaluate and compare various platforms. Let us also check teh capability checklist that you can add to the points for investigation.

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Capability checklist to Investigate for selecting Best HR Software

You must consider these points as well while making a decision to get the best solution for your business.

  • Module Feature List
  • Integration with payroll
  • Reporting Standards and customization
  • Employee Self Service
  • Time and Attendance Tracking
  • Reports Dashboard
  • Rules Configuration
  • Applicant Tracking
  • Hardware Requirements
  • Mobile App Interface
  • Document Manager
  • Data Security
  • Implementation Timeline
  • Post Implementation Support

Let us understand this compatibility checklist in detail for decision making.

Module Feature List

Check and review all the modules that are available and offered for integration with each of the shortlisted software vendors. Time Management, Leave Management, Workforce Management, Expenses, Performance Management, Recruitment, are a few standard ones available in almost all software.

Integration with payroll

Check if the payroll can be integrated with external financial software for effective payroll management.

Reporting Standards and customization

Know what are the reporting structures that can be created and mapped to your current hierarchy. The Best HR Software will allow reporting that can be customized at employee, department or organization level.

Employee Self Service

The Self Service is aiding page for any employee to approve or request HR-related concerns. The User Interface should be convenient to navigate from one page to another so that the employees can have a seamless experience and the employees do not end up spending volumes of their time in using the service portal

Time and Attendance Tracking

Ensure that your current time tracking software can be integrated with the HR software to give accurate records on a single platform avoiding redundant and incorrect data. 

Software like CuteHR enables you to time track project timelines also so you can manage employee work hours on a particular project. You can not only assign tasks but also track the employee performance as per project timelines.

Reports Dashboard

Generating employee-related reports is a regular thing for any organization to analyze different employee trends. The Best HR Software should have a variety of customizable report spreadsheets that generates an error-free analysis based on the information.

Compare what is the scope and variety of reports that can be generated through the HR Software and if it meets your requirement.

Rules Configuration

All HR Softwares work basis the rules or policies that are configured in the system before you can start to use it. Check how the configurations are done in particular software and if it allows customization or changes as per need.

Applicant Tracking

Best HR Software will enable you to track candidate information seamlessly. Check for the integration with external job boards like Naukri, LinkedIn, etc. that creates a single platform databank for all applicants hence saving time in managing multiple platforms.

Hardware Requirements

The HR Software can either be licensed like Enterprise Version or is cloud-based wherein all data is stored on an external server. Small Size business Units have different use and capabilities to handle data than large scale corporations. Choose the one that is best suited for you.

Mobile App Interface

There is a Mobile App for everything today. A good human resource management application is the one with best in the class app interface that allows employees to make leave requests, track attendance, etc on the go.

Document Manager

There are huge volumes of document files that need to be managed and updated at regular intervals. A good HRMS will equip you with large folder space so you can upload and save documents of various forms and kinds with ease to locate. All the saved documents can be accessed as per defined authority through set rules. Refer to Document Manager.

Data Security

Data Security is a critical concern that should be investigated right when you are choosing the HR Software for your organization. Since a lot of employees or company-related information is stored in the software, it is important to identify and ensure data security to avoid any breach of control that can impact the organization.

Implementation Timeline

Workaround for a suitable implementation timeline with the software provider so that you can have the ROI of cost and time.

Post Implementation Support

Best HR Software providers will have a systematic support mechanism to take care of your queries and concerns. Identify if your concerns are being dealt judiciously.

Put together a detailed checklist like this will support you to compare and evaluate different HR Softwares. In addition to the listed parameters, you should also review the ease of navigation, data entry functions, reporting capabilities, and customization and search functionality.

Working with an HR Software is challenging though it makes your life simpler once fully integrated and functional. A critical review of the product limitations and efficiencies will help you decide the Best HR Software System that will resolve most of your traditional managing issues and fit your organization’s capabilities.

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