How to Compare HRIS Systems

As companies grow and hire more workers, they must find a way to organize information about their employees. Many companies use a Human Resource Information System (HRIS) to manage employee records. When comparing HRIS options, companies should consider the types of employee data and processes that will take place in the system.

System Functions

The process begins with creating a detailed list of all the functions the HRIS software must perform. Every company has different needs. Some may require a system to handle payroll, while others may require a system to handle attendance or training.

System Costs

Establishing a budget is key because it determines how much money can be spent to purchase the HRIS. Costs differ widely depending on the number of employees and how much information the system will maintain.

Vendor Short List

Hundreds of vendors offer HRIS software applications. Narrowing the list to four or five options makes it easier to compare those that have all the required functionality and are within the budget. Other factors to consider include vendor reputation, client references and purchase options.

Purchase Options

Companies should determine whether the system will be purchased using a site license or as software-as-a-service (SAAS). Licensed software is a one-time purchase that's loaded directly on company computers. SAAS software functions more like a subscription. It's a pay-per-use service and is accessed through the Internet.

References

• HRMS Solutions Inc.: HRIS Planning Guide
• CompareHRIS.com:Ten Steps to Making a Wise Purchase or Hosted HR Software Decision

Resources

• HRComparison.com: HRIS Selection for Professionals
• Capterra: Human Resource Software Tools