Choosing The Right HRIS Vendor For You

Critical to achieving better human resource information databasing is, of course, an expert business system, one that is capable of efficiently organizing and analyzing employee data in order to formulate strategies that will best put the human resource to use in support of the company’s business objectives. Historically, a company’s HRIS purchase has been made reflexively and without due consideration for specific needs and goals – and as a consequence, many companies have wound up with HR systems functioning far below their potential. In order to ensure that your HRIS choice is a good one, consider the following approach: 

1. Identify your HRIS needs. Before you start spending that corporate dollar, ascertain just what exactly it is that your company needs from a new HRIS. Establish what you and your organization are trying to accomplish, and assess the ways in which an HRIS will help you to achieve these aims. You will have to explain these needs not only to your executive superiors, but to prospective HRIS vendors, as well – because how else can you hope to find the system that is best tailored to furthering the unique goals of your company? 

2. Coordinate the HRIS team. Implementing a new HR information system is a complex and involved process, not just a simple job that should be relegated to only the human resource folks or left for the techies to tackle. Inviting involvement from all across the board – finance, training, application development, vendor relations, legal and security – will not only lend you valuable wisdom in a variety of areas that will be influenced by the HRIS, it will also encourage a broader spectrum of people to “buy in” to the new project, thereby improving your chances of success. 

3. Square away a good technology approach. When it comes to technical applications like an HRIS, there’s a definite advantage to enabling easy and universal access for those who will be using it. It’s important to establish whether you’d like a system which is general to use, such as an ERP (integrated financials, procurement, payroll and human resources), or one which breaks down to be more specifically suited for individual areas of business. Ultimately, this latter approach to HRIS will almost always prove to be more prosperous than the “one size fits all” attitude, because it will allow you to take advantage of distinct and specialized application features which are designed to promote the forward motion of many different processes. Dealing with the varied parts of an organization as separate and important entities will permit each to grow and morph at its own optimal rate, unhindered by the needs of the other components. 

4. Write a Request For Proposal. Writing an RFP will compel your HRIS team to think seriously about where the organization is headed and what steps are important to its success. The process will, by nature, force you to identify the functionality of your prospective HRIS and the ways in which it correlates to your company, as you formally arrange your HRIS requirements (such as complexity, cost, versatility, reliability, and reputation) and the varying degrees of importance which you assign to them. Establish your criteria from the start, and be consistent with them – and above all, keep your RFP simple and direct, as it is only the first of many steps in identifying your company’s ideal vendor. 

5. Concentrate on HRIS total ownership cost. Too often, organizations focus only on the initial cost of an HRIS, and choose their system based on these beginning budgets and costs – a potentially grievous mistake, given the possible long-term costs of the extensive maintenance and adaptation required for a functioning HR information system. An HRIS decision should be based foremost on which system will work most effectively in solving the business issues you’ve identified, and only second to this should money come into play. The purchase of an HRIS should be viewed as an investment, not as an expense, and vendors who understand this will, in turn, be able to help you understand just how your new HRIS will work to save your company money and resources in the long run. 

6. Keep your negotiation strategy in line with your RFP. When dealing with your HRIS vendors, be honest and straightforward with what you want – don’t beat around the bush with respect to any special terms or conditions regarding your HRIS purchase. Keeping such “cards up your sleeve” until later in the negotiations will only prove to be a setback, and it is essential, meanwhile, that you don’t inadvertently sacrifice any points that you’ve established as being important to achieving your business goals. 

7. Value your HRIS vendor relationships. A personal and understanding relationship with your HRIS vendor can make or break your organization’s success. Different prospective vendors have different things to offer, so give ample consideration to potential connections involving possible business partners, customers, and suppliers. 

8. “Play the field,” so to speak. There’s no law that says that you can’t negotiate with multiple HRIS vendors simultaneously – in fact, doing so may subtly pressure them into competing for your business, though this is best only in careful moderation. It’s also important to remember that as you negotiate, purport all the concerns of your team with equal attention and expedience. Working through issues on a point-by-point basis runs the risk of accidentally leaving something out, and the last thing you want to do is mistakenly neglect a crucial element. 

9. Mind your manners. When dealing with your HRIS vendor, realize that, much as you are looking to do the best you can for your organization, they too are working to forward goals of their own. Be a smart customer – in the same way that cluing vendors in on your special needs can help your company to make the purchase, understanding your vendor’s needs will guide you both to striking a deal that works in everyone’s best interest. A contract that functions not only to your own company’s benefit, but to the advantage of your vendor, will motivate them to share with you the best they have to offer – a genuine win-win situation. 

10. Leave room to grow. Regardless of your company’s immediate plans for the future, you will inevitably experience growth and change as your organization develops and evolves. In choosing your new HRIS vendor, be sure to keep these prospects in mind, and negotiate a contract which will be flexible enough to adapt with your company over time.