5 common HR tech purchasing mistakes
April 20, 2009 by Sam NarisiPosted in: HRIS software, Special Report
In tough times, technology can help HR departments do more with less — but it also becomes more important to make careful decisions about software vendors.
Some of the biggest problems with HR software– such as hidden costs, resistance from users and security issues — can often be avoided by conducting the right research.
Here are the things you want to learn about before a purchase is made:
- Scalability – When choosing a system, companies can’t just consider the current size of the workforce — they also need to think about how big the company will be a few years down the road. The best bet is to go with a vendor you know can handle your needs even as the company grows.
- Ownership of data – Many HR vendors offer subscription-based, hosted systems — meaning the software and company data are stored on the vendor’s servers and accessed online. That can cause problems if you ever switch providers — some charge fees to transfer the data. Find out those details before making a decision.
- Security – Find out what systems and procedures are in place to keep information from being lost or stolen — for example, encryption, daily backups and user authentication. This is where the folks in IT can help. They’ll know what to look for.
- Employee satisfaction – One of the most important things to do is find out which software is best for everyone who needs to use it. The best way: Schedule a product demo and involve representatives from any group that will need to use the system (management, employees, IT, etc.).
- Vendor stability – Buying an HR system creates an on-going relationship because of the need for customer service and upgrades, or because the vendor is hosting the data. That’s why experts recommend learning about the vendor’s financials to make sure it’s a business that’s going to stick around.
Tags: purchasing, software, vendors
April 21st, 2009 at 1:20 pm
#3 possibly should have been #1. In addition to finding out about the things mentioned, you should also find out WHERE that information is stored and what laws govern its control, or lack of control.
In these days of cloud computing, your cloud could be almost literally anywhere in the world and the laws of the country where the server resides are probably going to be the ones used to govern the handling of the data. Considering that the typical HR data includes more than enough to steal the identities of every employee in it; even considering using any online storage is a strategy that should only be undertaken after careful examination of the risks involved. With the price of storage the way it is today, your first choice should be storage in a location you can control and regulate.
April 21st, 2009 at 4:48 pm
The most important thing you can do when making a technology purchase is to involve IT.
Define the business objectives and requirements, and approach IT up front before looking at vendors. Ideally, there should be a Project Manager assigned up front who can develop and manage the project.
Often, there is an in-house facility that can be leveraged for little or no cost, vs. purchasing and implementing a dedicated system.
Failing that, IT needs to be a stakeholder at the table during the vendor selection process. The vendor is incented to sell and install the product, and not much beyond that. IT is the “sanity check” to make sure the product will work as expected in the company’s specific environment, and to make sure appropriate technology safeguards are in place.
I have had vendors sell a product to the business owner by telling them: “This product is so simple that IT doesn’t even need to be involved.” I know this because I got the phone call later saying: “We’ve purchased this system, and it won’t work unless you make this long list of changes.”
April 23rd, 2009 at 11:18 am
#4 is the most forward thinking point and really the most relevant. If critical users are not going to adopt the software than the entire initiative is going to fail. This is the most common issue that most buyers over look.
There is a good blog post about this issue here:
http://www.newtonondemand.com/blog/2009/04/17/making-it-easy-for-everyone/
Choose an on-demand (SaaS) product that works in your browser and your IT department will not need to spend a bunch of cycles as they are likely busy keeping less modern things working great.