You have decided to invest in a new HR system, but where do you start? There are many HR systems on the market, which is good news, because it means you can choose one that genuinely fits. It can also feel daunting.

We have worked with many HR systems and advise on which ones suit which needs. Factors including employee numbers, locations and payroll requirements will shape which system is best for your organisation. Here are nine things to consider when selecting a new HR system.

  1. On-premise vs cloud - The decision between a cloud-based HR system and an on-premise one can seem difficult, especially for organisations with no previous experience of cloud business solutions. If you are at that stage, our advice is to go with a cloud-based solution.

  2. HR and payroll integration - This is a big part of the implementation process and a very important one. The system you choose should have a payroll module or be able to interface with your existing payroll.

  3. Functionality and alignment with your business needs - The system needs to work for your business and its processes. There is no point choosing a system that cannot do what the people using it day to day need it to do. Check how the functionality of each option aligns with your business and department goals. Too often a project team decides what it thinks is required, only to find out later that things were missed. Involve your stakeholders early and talk to them before you choose.

  4. Scalability - In most cases you will have a roadmap of what you want the system to do over time. The solution should cope with that plan and grow with the business. Consider whether to buy all the modules you need now, or the most critical ones first and add more later.

  5. Initial and ongoing cost - Cost is a major factor. Not every company can afford the top of the range, but there are affordable systems with similar functionality to the expensive ones.

  6. User experience - HR will usually love the new system. Remember, though, that employees and line managers will use it too, for self-service. Think about the system from their point of view as well as HR’s.

  7. Mobility and accessibility - Line managers now expect to use the HR system from their phone. If a system is not mobile friendly, you may be missing a trick. Everyone who needs the system should be able to reach it, including field-based teams.

  8. Data and analytics function - A system with reporting and analytics is a must for companies that want to use people data to solve business problems. The output is only as good as the data you put in, but built-in analytics is a good start. Check how easy it is to create reports, schedule them, and build dashboards.

  9. Implementation - Some vendors make implementation easier than others and provide support that lightens the load. Implementing a new system is rarely painless and involves real work alongside the day job, but it is worth doing properly. Get help from professionals and protect some time for it. See our HRIS implementation support for what that looks like.

If you are thinking about selecting a new HR system, find out how we help on the HRIS selection page or talk through the pressure points.