No more hesitation: 5 tips of finding the most suitable HRMS for your business

June 26, 2018

Under the evolution of technology for human resources (HR) management, it's never an easy task to select the right Human Resources Management Software (HRMS) suite even by HR veterans. The right HRMS can help make the lives of HR colleagues monumentally better, in both efficiency and relationship aspects. So, is there any method to determine the best HRMS that fits your need? Here are 5 useful tips to help you find your HRMS "soulmate" and have a smooth and sound digital transformation.

1. Set your expectation about the new HRMS
It is essential to start with expectation management once you plan to make a HRMS purchase. Try to avoid pitfalls by initiating conversations with your stakeholders, not just the IT manager but also the HR manager, employees and senior management in your company, to understand what's expected, how it might be accomplished and how success will be measured.

Create a wish list of functions that should help your daily HR operations. Try not to make it too general; you may mark two to three points for each function. It's common that an HRMS application offers the following functions:

- Human capital management
- Leave management
- Payroll management
- Attendance management
- Report writing
- Employee self-service (ESS)

2. Possibility to reorganize your company's HR strategy
If you start to locate the suitable HRMS for your company, it is also a good timing to review and adjust your overall HR strategy with the new technology implementation. Why? It's because HRMS provides a means for a company to automate processes from traditional to digital, which should be aligned with the expectations of adopting HRMS for saving the HR manager's time and making a change to improve overall efficiency.

3. Plan ahead for your budget spending
HRMS charges usually can be classified in two types, software-as-a-service (SaaS) model and license model.

SaaS model: This is a subscription approach with off-site cloud HR packages and limited customization. The payment of this model is usually made on a monthly basis and the amount is dependent on the number of either system users or employees in your company. The subscription obviously costs less up front, which is suitable for companies who want a low initial outlay.

License model: The offering of usage licenses is largely associated with systems running via on-premises servers. This model can carry a greater degree of freedom involving necessary customization to cater to specific requirements. It's just like buying a house: it may cost a lot up front but once you've paid for it, it's yours.

Different vendors may charge differently for their software, and some of them may even provide both types of charging model. Before you can actually start searching for vendors, it's essential to determine the money you are going to spend with management's approval.

4. Don't just assess the products; evaluate the providers
Evaluating the vendor company is at equal importance to assessing the HRMS. The number of installations, service approach and implementation practice are critical factors for consideration. Purchasing or subscribing an HRMS choice is more than just an acquisition of technology. You are also buying the future possibilities of a vendor, the sustainability of your HRMS. Find a vendor who understands your industry and HR challenges well.

5. Ask your network for advice
HR professionals are usually well networked, so get some suggestions from them, like “What kind of HRMS are you using?”, “What is the challenge to adopt HRMS?” or simply, “Do you have any recommendation for HRMS?” All the feedback can help you make a more informed decision for your company.

To be honest, choosing the best HRMS can be a tough endeavor without an in-depth understanding of your company and the struggles. However, it's still a good practice to move forward in the era of technology. For more ideas, just let us know here.


Erik Kwok, Head of R&D, C&T