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There are simple skills and processes that can help buyers be more effective when purchasing HR software. However, those processes are rarely taught in HR programs or SHRM continuous learning lessons. Here's a quick guide:
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Many HR software buyers are uncomfortable going into the software market and beginning a new HRIS evaluation. And this is quite understandable.
Buying software has, historically, not been something that has been taught in HR programs or covered in SHRM continuous learning sessions.
However, in our new era of work, having the skills to effectively buy HR software can make a world of difference for an HR leader and their organization.
The process of effectively buying HR software can be boiled down to a few tried-and-true steps. None of these steps require special technical skills or knowledge; they simply require a concerted effort.
Here's how you can be a savvy software buyer:
Before you go to market, make sure you know exactly what you're looking for. If you don't know exactly what you need, then it will be very hard to discern between different options and you'll also open yourself up to being sold unnecessary features and functionality.
Most buyers know this, but most buyers also make the mistake of listing out a bunch of features that they need, rather than starting the requirements building process at a higher level.
We always recommend our clients boil their needs down to five key outcomes. If this project could only succeed in five areas, what would those be? Often that can be: better integrations, better reporting, more responsive support, fewer systems, more scalability, etc.
Get your key outcomes together and agreed upon, then start to think through functionality and features.
Get your team together and bought in before you go to market. The last thing that you'll want to do is spend hours falling in love with a certain software platform, only to find out that your teammates aren't onboard with the decision.
We always recommend having a project kick-off call with your cross-functional stakeholders. This meeting helps you bring allows you to hear from your key stakeholders early on and it makes the project real for everyone.
In this meeting, ask each member of the project team two questions:
Having this meeting will allow you to determine who are your project advocates and who are the people who you will need to work on, in order to get their buy in
Once you know what you're looking for, it's time to figure out who can do it.
Not to self-promote, but OutSail will do the shortlisting work for you at no cost, so save yourself the time and reach out. However, for people who like working independently, there are ways to shortlist effectively.
The first thing you’ll want to do is just start broadly. Build your initial list by canvasing review websites and blogs, and reaching out to your colleagues and peers to see which names pop up the most.
It will be easier to feel confident in your final decision, if you've already ruled out a number of competing options.
But how do you rule out options without getting on demos? I'm glad you asked. There are three ways:
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Don’t show up to the meetings empty handed and expect the salesperson on the other end to give you all of the answers you're looking for.
Your job is to be the one driving the evaluations, not the one who gets sold to.
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Create a meeting agenda to make it clear to the vendor what needs to be covered. Come up with key questions and workflow scenarios that you want to see the vendors respond to in real-time.
A little preparation will go a long way in making sure you get everything you need out of your 60-90 minute demonstrations
Don't forget about that key criteria that you worked so hard to build in the first phase.
When you're preparing for your vendor meetings, build a scorecard tool that can weigh each of those criteria accordingly.
Also, make sure that when you're preparing your agenda and questions, you'll have a chance to cover each of those key drivers
References are a high variance resource. The right reference can really open your eyes to what to expect moving forward. However, many references are available because they had the perfect experience, which may not always be replicable.
Request each of your finalists to provide references. And be specific about what type of reference you want (i.e., someone who left the same platform as is, is in the same industry, built a similar integration, etc.)
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When speaking to those references, get a real sense of what the day-to-day partnership is like. Ask about support turnaround times. Ask about the process of setting up integrations.
A great question to ask is always: What did you wish you knew when you were in our shoes?
Negotiations are the most underutilized step in the HRIS buying process. Buyers just assume that the list price is fixed and can't be moved.
But in our experience, almost every single buyer who negotiates ends up with a far better deal.
We've built a long guide detailing how to negotiate, but a few of the key things to keep in mind are:
An HRIS, or Human Resources Information System, is a software solution that combines various HR functions and processes into a centralized system. It's important for businesses because it helps streamline HR operations, improve data accuracy, enhance employee experience, and support strategic decision-making.
The key steps in buying an HRIS include:
Determining requirements and building consensus internally
Shortlisting potential vendors efficiently
Evaluating vendors discerningly, including preparing for demos and aligning around key criteria
Selecting a vendor confidently, checking references, and negotiating terms.
Start by identifying the key outcomes you want to achieve with the new HRIS, such as better integrations, improved reporting, responsive support, etc. Then, involve cross-functional stakeholders in the process to gather input and build consensus on the requirements.
Start broad by gathering recommendations from colleagues, peers, and online review sites. Then, narrow down your list by checking for missing functionality, ensuring a size match and scalability, and assessing market presence and growth potential.
Create a meeting agenda outlining key questions and workflow scenarios you want to see addressed. Prepare a scorecard tool to weigh each vendor's performance against your key criteria. Ensure that your agenda covers all important aspects of the HRIS that align with your organization's requirements.
