Tracking employee data within your company is a key task for the HR team and best managed with HR software. Before starting the process of evaluating HR systems, it’s important to build a list of requirements and understand the different software features and modules available to address them.
When determining the features to include in the requirements document, your company’s culture is important. If the organization fosters a learning culture, for example, a learning management system (LMS) may be more essential than performance management software. Consider the following HR software features when compiling an HR system requirements checklist.
Most HR systems are cloud-based. The software is hosted by the vendor, and corporate access to the application and data is available through a web browser or mobile device. Alternatively, vendors offer HR software that’s installed and managed on premises within the enterprise, typically by IT. Both options have advantages, but cloud-based is the preferred model.
A key component of HR software, the core HR module stores information about employees and is often the hub for functionality that’s applicable to the whole HR system, such as security and reporting. When evaluating the core HR functionality, validate the following points:
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HR software typically provides features to track absences and capture working hours on a timesheet. Ensure that the system can accommodate corporate policies and practices. Validate that the system can do the following:
Often referred to as an applicant tracking system, the recruiting module covers the lifecycle of finding and hiring new employees. Most HR systems include this functionality, though it’s not always as advanced as the systems from vendors who specialize in this area. Key HR software features to consider include the following:
An onboarding module can enhance the onboarding process for new hires and provide a positive first impression. At a minimum, new hires use the onboarding module to complete forms and review policies. Consider the following features when developing an HR system requirements checklist:
Many vendors have added features to support informal feedback options, while continuing to provide functionality for a traditional performance review management process. Regardless of the performance management approach, consider the following points when evaluating HR software features:
Incorporating a feature that captures employee benefits information can save significant time during the onboarding process and open enrollment. Based on company requirements, confirm that these capabilities can do the following:
While reviewing HR software features, allocate sufficient time for reporting and dashboards. Too often, those capabilities are left until the end of a demo. Consider the following:
Incorporating an LMS and learning experience platform (LXP) can streamline the administrative tasks of scheduling and running courses, provide online courses and reinforce a corporate learning culture. Consider the following features when exploring an LMS and LXP:
A significant benefit of using HR software is the ability to securely share information with employees and managers. Consider the following self-service features:
The ability to integrate the HR system with other software used within the enterprise can be very valuable. IT systems, for example, might benefit from knowing about new hires and terminations. These two options are typically available:
Data can be edited and audited with HR software’s built-in tools. The following HR software features may be available:
The data between HR and the payroll department is closely tied and warrants consideration, regardless of whether payroll reports to HR or finance. Many HR systems offer a payroll module in addition to prebuilt integrations with the major payroll providers. Consider the following payroll features:
Adding a succession planning module to an HR system can help identify and prepare rising stars within the company for senior roles. But since time and cost are involved to implement and license this module, be sure there’s a companywide commitment to succession planning. Consider the following capabilities when evaluating a succession planning feature:
Although just a once or twice a year process, compensation planning is critical to get right, and the often-used spreadsheet can be problematic. A compensation module can provide the following benefits:
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