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The Ultimate Guide to Choosing the Right HRIS: 3 Key Factors You Can’t Ignore

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Discover how Technoivity can help your business thrive—streamline HR, reduce costs, and unlock value today.
Discover how Technoivity can help your business thrive—streamline HR, reduce costs, and unlock value today.


If you are considering procuring a new HRIS (and/or ERP) solution, you want to get the right marriage between you and your system. With dozens of client-side implementations, we have learnt many lessons, and none is more important than getting the product selection right.


Here are our top three tips for HRIS product selection.

1.   Get the right tier

Understanding your organisation's size and complexity will lead you to pick a product from the tier that best suits you.


This involves assessing three key factors.


-              Headcount,

-              Turnover, 

-              The number of countries in which you operate.


The following handy chart is a guide for which tier will best suit your organisation:


Tier 1

Tier 2

Tier 3

Headcount

20,000+

500 – 25,000

10 - 1,000

Turnover

£500M+

£20M+

£0+

Countries

Many

Few

One


Remember to consider your organisations strategic plan, as a HRIS system investment should fit your needs for at least 7-10 years. While a growth strategy may plan for the organisation to grow between tiers, you may want to become established in the tier category before adopting a system from a higher tier before you are ready.

2.   Get the right Cultural Fit

Organisations culture differs dramatically, and so do the cultures and behaviours of HRIS systems. While it is true all will seek to automate and digitally enable tasks, the fit relates more to the system administration and implementation of the system.


Key questions to ask your business leads:


-              Do we have well established, fit for purpose processes?

-              Are our policies imbedded well in the organisation?

-              Are our processes thoroughly documented?

-              Are we flexible and able to change policies and procedures?

-              Is there a need for consultation with third parties (e.g. unions) to make changes?

-              Is the terminology we use fixed, or can we change the language we use?


Systems will generally come with either, a high degree of pre-defined processes that have been tried and tested for optimal value, or a high amount of configuration options so you can build the system to fit your requirements with minimal changes to policies and procedures.



Note: matching a system to your current policies and procedures does not mean you can skip change-management when implementing. Though it may mean there is a lower level of change needed, if general principles and terminology will remain the same.


3.   Understand your Industry

Many HRIS platforms started working with one type of industry client and will have specialised features to help support that industry. For example, organisations working in the retail sector will often have a high proportion of timesheets to process and require strong rota management modules.

You should understand which modules of your HRIS you expect to rely on heavily and make sure these are at the core of the HRIS offering. For example, a heavily regulated industry like childcare will have a need for excellent compliance and safeguarding training and monitoring, so a compliance centric system would be an excellent fit.

Understanding what your competitors use can help identify which systems are more commonly used in your industry and may be suitable for you too.

That said, if you are considering a Tier 1 or 2 system, you should consider the origin of that system as they will normally cover most if not all industry types. Platforms that started off in your industry area will excel at that, despite diversifying more widely. (e.g. SAP is very strong in manufacturing and logistics organisations, and Oracle in financial organisations).


Conclusion

The review of a long list of providers using these tips can whittle down the list to the most suitable for invite to demonstrate their systems and will align best with your organisation.

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