Are you considering purchasing a Human Resource Management System (HRM SYSTEM)?

At the start of the year, companies often rush to plan; by year-end, they’re scrambling to meet targets. Mid-year, however, tends to be a time when employees can pause and reflect on how to improve workflows.

For HR personnel, deciding whether to purchase external software to assist or automate tasks—such as payroll, attendance, taxation, or performance evaluation—can be a daunting challenge. After all, traditional HR training rarely covers areas like software procurement or process reengineering.

Let’s break this complex issue into the following questions:

1. Optimize Workflows vs. Adopt Automation Software?

Consistency and discipline are crucial considerations. One reason why HR tasks are often overwhelming is the sheer number of "exceptions" that arise. While some HR software or enterprise management systems allow authorized users to alter system records and calculation results, what’s more important for a company is reducing the time and resources wasted on handling these exceptions. Therefore, before implementing an automated system, the company must first establish clear policies and guidelines.

Thus, companies should first establish clear policies and guidelines. At its core, an HR system’s primary function is to translate these policies into system logic. By optimizing workflows beforehand, the system can deliver maximum value.

2. Cost Savings vs. Efficiency Gains?

Purchasing software entails costs, so the purpose should extend beyond merely making HR tasks easier. Instead, focus on aligning the software with the company’s growth and operational strategies. Consider factors such as workforce expansion, refining bonus and compensation structures, and optimizing performance management and employee goal-setting systems.

3. Should We Ask Vendors for Demos First?

Before deciding which HR system to use, it’s crucial to schedule demos with vendors while clearly communicating your company’s requirements.

While vendor demos are essential, internal preparations are equally important. Assign staff to oversee procurement at the project’s outset. During implementation, allocate resources for testing and deployment. Additionally, team members must fully understand the company’s HR management rules to provide vendors with the necessary context, ensuring the system meets your requirements.

Now is the time to pick up the phone or draft an email to initiate discussions with software vendors.

4. Software Customization？

Every HR system requires some level of customization to meet the diverse needs of different companies. During procurement, HR personnel should carefully document areas that require customization, as well as the potential additional costs and time for development.

5. ⁠Is Simpler Software Always Better？

Not necessarily. At a minimum, the system must allow users (i.e. HR personnel) to trace the origins of outputs and make appropriate adjustments to formulas, especially for salary and leave calculations.

Avoid choosing software that appears simple and user-friendly but hides inflexible, unmodifiable rules that could lead to complications.

6. What Else Should Be Considered When Choosing the HR System？

Data analysis is becoming increasingly important. While it’s great if the HR system can generate visually appealing charts, the ability to export data is equally critical.

The HR system should allow authorized users to download data at any time for integration with other analytical tools, completing tasks like data analysis or system audits.

Take the first step—reach out to software vendors today!

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