Tips For Evaluating HR Software Programs

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If you are purchasing your first employee information system or upgrading to a new one, how do you compare HR software programs?

There are a wide variety of applications available. Those that are geared toward large businesses with thousands of employees focus on a different set of requirements than those for small businesses. On the other hand, the most basic niche software packages don't necessarily have what you need to effectively manage your workforce. You need to find a happy medium that addresses all your strategic and administrative HR needs. Here are some tips to help you do just that.

Identify Your Core Needs

For small business employers, a human resource database for storing basic employee information is the foundation of a good software system. Most applications will have the same traditional fields (identifying information, emergency contact, hire date, wage rate history, etc). However, you should look for HR software programs that permit you to define your own fields as well. Otherwise, you will find yourself using a separate system for documenting additional information. Core HR management should also include benefit eligibility tracking, performance review documentation, and employee leave management.

Only Pay for What You Need

In the HR software industry, applications are available in a single package or as elements you can add as you need them. A good rule to follow is spending your money on a product that will make your life easier right now. If you will use 75-80% of the features in a bundled HR software program, it is usually worthwhile to pay for a package deal.


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