How To Choose The Right HRMS For Your Organization

Among the various resources that the organization has to deal with, Human resources have become crucial. And in the technological revolution that the businesses are facing themselves day-to-day, it is necessary to develop a more suitable solution for the management of its resources.

Human Resource Software is one such digital solution that comes to our rescue. The daily HR-related tasks and goals are optimized and managed by the HR software for better allocation and productivity. Thus, the importance of the human resource department and the crucial manpower resource together has made it even more primary the need to shift from the traditional HR practices to implementation of the Human Resource Management System (HRMS).

How To Make The Right HRMS Choice?

As we now are aware that the need for HRMS is increasing day-by-day, there is no point in postponing the decision of implementing one. But then, a survey shows that many managers are stuck between the decision made and the implementation. That is, the decision of implementing HRIS gives rise to questions like – which would be the right choice? How to choose? Will it be right? And so on.

The management of the organization has to make sure that the investment required for the implementation has to be worth it. And obviously, there would be higher hopes on the returns, productivity, minimized expenses, etc.; the choice should not affect any of these. 

The vast opportunity provided by the technology has given rise to many software developers for human resource management systems in India. If you want to figure out the best choice, it’s like trying to find a particular stone in a big sea. Hence, it’s definitely a challenging task to determine the right human resource management system. But here are a few factors and steps that might assist you in overcoming the challenge of making the right choice for your business:

Understanding And Updating Your Current HR Strategy

We know that the implementation of the HRMS is basically to automate tasks as much as possible. In this case, it’s vital that you are aware of your present strategies And added to it, this becomes the right opportunity to evaluate your overall HR practices and fix the flaws. And thus, while implementing the HRMS, you can be assured of a smooth workflow.

So, begin by defining what, why, and how you want to organize the HR department and what your targets are. With this, you’ll have a clear picture of what are the basic requirements that you are looking for in the HRMS software. Remember that the best choice of software need not be the one with many customers and good feedback, but the one that well suits your company’s strategies.

Gather Your Team And Understand The Needs

The management makes the choice of software implementation, keeping in mind the long term benefits. Therefore, it’s better to identify what exactly we are looking for in the software. It would be even better if these discussions are done along with the HR team, as they would have a better knowledge of these needs and applications. The basic needs may include the following:

  • Applicant tracking, recruitment, onboarding
  • Employee database
  • Analytics of HR
  • Payroll
  • Timesheet
  • Reports generation
  • Performance appraisal management
  • Learning and training management
  • Retirement benefits administration
  • Employee Self Service, etc. 

However, it isn’t necessary that all or only the above mentioned could be HRMS’s possible needs. It may vary depending on your organizational functions. Once done with this, you’re all set to seek out the right vendor.

Fix Your Budget And Choose 3-4 Vendors For Review

Before looking out for the vendors, it would be better to set up a budget as to how much the management is willing to spend on the HRMS purchase. It may also depend on the different methods of payment like – one-time settlement, installments either monthly, quarterly, or half-yearly.

And then, as mentioned earlier, there are a large number of vendors available. Though a challenging task, it’s better to shortlist 3 or 4 vendors you feel better. This short-listing can be based on the feedback of other companies, your research on the different software, etc.

Request Demo From The Short-listed Vendors

As of now, you already have a list of few vendors you are comfortable with; request and schedule a demo of the software. You can involve the human resource team to be part of the demo too. This is because the team who already knows the tasks and its functioning will have a better understanding and can assist you in analyzing every minute part of the demo. You might feel that the first or second vendor is likely to satisfy you with their products during the demo. But it’s a suggestion that you still complete the other short-listed vendors’ demo too because you might never know what’s missed out from the other vendors.

Review And Assess The Demo Experience Of The User

Once you are done with the demo, it’s as though you have crossed half part of the ocean. Now, as you are aware of what each vendor has to offer you and if they match your requirements are not, you can review it along with the team and collect their feedback. Although the management’s decision is considered important, it’s still better to take the HR team’s feedback as meaningful too. It’s because they would be the ones to use it. So, it’s necessary that they are comfortable and convinced with the choice made.

Finalize The Software And Make The Purchase Decision

Now is where the actual choice of the right choice of the software is made. After the review, you can finalize on what suits your organization better, including the pricing and implementation determinants. And then move ahead with the purchasing process as to how and when depending on the organization’s policies.

Implement The HRMS And Get Your Workforce Acquainted With It

Although this subtopic is not a part of the choice of the right HRMS, it’s essential as this is the immediate step after the purchase. This is included because there are reports that show that even during the implementation process, certain agreements were called off due to a few undeniable reasons. It may also happen that after the installation, some companies found that the software chosen was not user friendly. Hence, the organization has to face the issue all over again.

Therefore, it’s advisable to do as many research and collect feedback in order to avoid such uncertainties. And also, note that any new change in the organization will definitely cause an uncomfortable feeling among the employees. So, it’s necessary to provide them the necessary training that they require. The training might help the workforce get acquainted with the new technology and the urge to be updated with its technical utilization.


The focus while making a choice is to be on the alliance of the software with the needs of the organization. And considerable time is to be spent in order to make the choice of the right human resource management system because a small misconception may affect the bottom line of your organization. Therefore, it’s better to analyze and examine the benefits that come along with the chosen HRMS.

Author bio:

Divyang Metaliya is a Business Consultant. Apart from managing and improving business processes, his hobby is to spread his vast area of knowledge to the people out there. He loves to create content that is innovative and engaging for the readers.