HR software selection can be a difficult task

Smart deployment of technology can improve the efficiency and quality of Human Resource Management processes and reduce costs. How do you choose the HR & Payroll solution that best fits your business? This is not an easy task. The investments concerned are considerable and the selection process can be time consuming and demanding. Due to the organizational and financial impact it will be hard to reverse the choices made. So, the selection process should lead to the best choice within a realistic timeframe. In practice this proves to be difficult and not without risks.

How do I select the right HR & Payroll software for my organisation

When you approach the selection as a step by step project, it reduces the risk of spinning out of control. Clear milestones simplify the decision making process and the realization of the project. We distinguish between the following phases in the HR software selection process:

  • Setting up requirements
  • Software and supplier selection
  • Implementation

Setting up requirements

Implementing a (new) HR solution in your organisation will have a considerable impact. Be aware of the organizational changes you have to go through when deciding on your objectives and requirements for the HR system. For this first step we have the following tips:

  • Project team: Assemble a well balanced team for the job, consisting of representatives from all layers within the organisation. You’ll need both decision makers and end-users in the team for a widely supported decision.
  • The future: Setting up requirements goes beyond your current needs. If you expect to depreciate the system in four years, then in theory, you should try to anticipate on your future needs for four years. Aiming for a flexible off the shelf solution should be preferred over rigid in house developments.
  • The actual requirements: The HR software features checklist available on this website can form an excellent basis for your list of requirements. It contains the most common features found in modern HR software solutions.

Software and supplier selection

In the selection phase you choose the application that best fits your needs and can be easily adapted to new requirements in the future. Another important decision to make involves the selection of the supplier of the application. This company will be the partner you have to rely on during the implementation and your point of contact for the next couple of years. Please consider the following tips for this second step:

  • From longlist to shortlist: Not to get lost in the huge supply of solutions and vendors is a project by itself. SelectHRM will help you to make an initial selection of vendors to consider. Based on the information and comparison report you’ll receive, you can narrow down this longlist to a neat shortlist.
  • Stick to your requirements: When you invite the shortlisted vendors for a demonstration, make sure you stay focused on the requirements decided on in step one. The flashy screens displayed can easily distract from your initial goals.
  • Partner and price: Decide on the type of partner you want to work with beforehand. A solid partner will often prove more cost effective than the lowest initial quote.


Before making your final decision, you should also consider the implementation phase. What terms and conditions are applicable? What guarantees are offered regarding availability and continuity? What is the plan and accompanying time frame for the implementation?

Select is convinced your HR software selection will be successful if you take these issues into account.

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To help you choose the right HR software supplier, Select has developed a unique checklist.
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