10 Things to Consider When Choosing HR Technology

Last Updated: December 16, 2021

When it comes to choosing a digital HR system, every organization will have different needs, wants and priorities. That said, there are a number of elements that should always feature on the ‘must-have’ HR tech checklist

When it comes to digital HR systems, there is no ‘one-size-fits-all’. Every organization has different needs, wants, and priorities, and these will be determined by a whole host of variables from the industry sector, to headcount and geographies. That said, there are several key selection criteria that every HR leader ought to bear in mind.

Here are ten things that should always feature on the ‘must-have’ HR tech checklist:

Advanced data security: HR is on the front line of data security. It is your responsibility to make sure you have appropriate systems and processes in place not only to secure personal data, but to ensure that it is up to date and accurate, and deleted or anonymized in line with relevant legislation. Since HR software companies offer different levels of security and compliance, it is important you take the time to understand what is on offer. Third party validation, such as ISO27001 certification and ongoing penetration testing, can provide some reassurance around data security, but you should also ask your own questions too. For example, where is your data held? Is it encrypted at rest and in transmission? How long does it persist after you’ve deleted it (or cancelled your contract)? What tools does the supplier provide to help you manage data for GDPR compliance?

Cloud credentials: Today, there are two main types of Cloud HR systems: older ones that are hosted in the Cloud, and the Cloud native, newer systems built to take advantage of modern technology platforms. The former have been around for a decade or more, so typically offer a wider range of features. The latter, while lacking some of the breadth of older systems, are catching up fast and are generally more cost-effective, especially when it comes to implementations and ongoing updates. As a buyer, your challenge is to cut through the marketing hype and decide which approach is best for you.

Smart set up options: A large number of HR tech suppliers still rely on professional services as part of their business model. Their platforms just won’t work without configuration and this often leads to significant cost creep via expensive consultancy and development time. It may be that your needs are unique and well suited to this approach. However, you should consider HR systems that are pre-configured to handle industry-wide HR processes ‘off the shelf’, and can also be adapted by you without IT or vendor assistance. You’ll save yourself a lot of time and money. 

Rewarding self-service: This may sound obvious, but it’s vital. Enabling employees to check and update their own information wherever possible will not only empower them and improve employee experiences, it will also allow you in the HR team to reduce unnecessary admin. Today’s digital HR systems go well beyond simple data entry and have embedded workflows and notifications that remove friction, thus streamlining and improving HR processes. The best also facilitate communication and collaboration across the entire workforce. Make it a priority to ensure all your employees get value from your HR system and take data entry out of the HR department.

Mobile matters: According to Ofcom, Brits check their smartphone every 12 minutesOpens a new window . Marry that with the fact that over 50% of internet traffic comes from mobile devices, and it’s obvious that your HR system needs to be mobile friendly. If it isn’t as easy to use from a mobile or tablet on the move as from a PC or Mac in the office, chances are your managers and employee will find ways to bypass it. Native mobile apps, browser independent HTML5 interfaces, and responsive design make a huge contribution to mobile usability – and the success of your HR software project.

Global thinking: In an increasingly global business environment, this is fundamental. If your HR system can’t flex to reflect different ways of working in different countries, it’s clearly not fit for purpose. In an ideal world, your system should allow you to act local while thinking global. Each country might want to use its own language, currency, and rules so that, for example, calculating entitlement to paid time off is easier, but corporate still needs a consistent, coherent view across the organization. 

Clear cost structure: As with any change initiative, the last thing you need is an unexpected cost. It’s a sure-fire way to undermine your credibility with the board, and can easily derail implementation projects or ongoing system improvements. According to Justine Brown, a senior HR Director who has led several global HR software implementations: “Selecting a system that has a clearly defined (and publicly available) cost structure will avoid this risk – not to mention give you added clarity and peace of mind. It’s also important to know how prices could increase over time. One of the best structures in this regard is a ‘cost per person’ model so that you only ever pay for the people you have on board at any one time. No more, no less. Simple as that.”

Quick time to ROI: Without stating the obvious, selecting a digital HR system that aligns with your budget is clearly a key consideration. As well as ensuring the right cost fit, the chosen system should allow you to get up and running quickly and effectively so that you – and your board members – can start to see tangible benefits and ROI sooner rather than later. In short, you want to go live quickly without going broke!

Clear business benefits. Ask yourself: how will this system make a difference to our bottom line? It’s a question you will no doubt be asked when putting your business case to the board, so you’ll need to keep it the forefront of mind throughout the HR system review process. Be clear on what you want to achieve, and keep referring back to these objectives. If you decide to move the goalposts – perhaps to incorporate HR processes you’d not originally identified – remember to subject these added elements to the same test.

Finally…focus on future-proofing: During times of growth and change, HR needs a technology solution that can keep up and deliver consistency and optimal experiences across the board. The newer multi-tenanted Cloud solutions generally have the edge in this regard. Alongside centralizing and improving HR data and processes, their underlying product architecture means they are quicker to implement, accommodate growth more easily and are updated with new features more frequently. As the supplier is responsible for all of the underlying hardware and software, updates are usually seamless – and in real time – so you’ll never get left behind. Failing to choose an HR platform that scale with you can lead to a costly, bureaucratic nightmare, so always keep your company’s future direction forefront of mind.

With HR software offering a more compelling return on investment than ever before, as well as new and exciting ways to connect with employees and improve people management, the question is not whether to invest in HR software, but rather which system is the best fit for you.

Sue Lingard
Sue Lingard

Marketing Director, Cezanne HR

Sue Lingard is Marketing Director at Cezanne HR. Having studied Personnel Management at the London School of Economics, Sue started her career in the travel industry before moving into much more exciting and constantly evolving, software sector.
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