How to Find the Right HRMS Software for Your Company | HRMS Software

HRMS software creates the basis for efficient personnel management. However, choosing a suitable solution is sometimes difficult. What should the software do? What can it cost? And what do you have to pay attention to during the introduction? We give you an overview.

With the help of HRMS software, numerous standard processes can be automated in human resources. Nevertheless, according to a current Capterra study, medium-sized companies (SMEs) in particular do without it. Almost every third company (28 percent) continues to rely on Excel, Outlook, and the like for personnel management - especially because they believe that software implementation entails high costs. And after all, one in five HR administrators is convinced that they do not need any special software for their work.

The Benefits of HRMS Software Are Often Underestimated

According to the Capterra experts, this is a gross miscalculation: "The advantages that competitors enjoy through the use of HRMS software are often difficult to see from the outside," the study says. The missed advantages and time savings are therefore often not realized. In addition, many HR trends require the use of the software. Topics such as artificial intelligence, predictive analytics, and chatbots are not possible without the use of the software.

It is all the more important that SMEs put the digitization of their personnel processes on the agenda and invest in professional HRMS software.

You Should Focus on These Aspects When Choosing an HR Solution

Financing:

Many companies believe that an HRMS software solution has high implementation and operating costs. That is why they prefer to continue to rely on non-transparent processes and a confusing list of paperwork for personnel management. The resulting productivity losses outweigh the costs of switching to digital personnel management in the medium term. Especially since many HR applications can now also be rented. Instead of having to dig deep into their pockets once for an implementation, users pay a manageable usage fee. Accordingly, rental software is enjoying growing popularity, especially among medium-sized companies.

Security:

Data protection and data security play an important role when choosing HRMS software for many companies. After all, HR managers work with highly sensitive information. With good reason: Because when it comes to complying with legal requirements such as For example, complying with the General Data Protection Regulation (GDPR) is half the battle. In contrast to German providers, foreign manufacturers do not necessarily cover the strict European data protection requirements. Especially with country-specific processes, such as Foreign providers, for example, payroll accounting, should therefore be carefully examined.

Technology:

Last but not least, technology naturally also plays an important role. Are all HR processes to be automated or is it just a matter of digitizing a certain area? Depending on the objective, integrated complete systems or individual solutions offer advantages and disadvantages: Integrated systems contain a larger number of tools, but the range of functions for special individual solutions is usually greater. In addition, complete solutions usually have a modular structure so that they can be quickly adapted to new requirements if necessary. Another success factor: the intuitive user interface. After all, the success of software depends on user acceptance.