Selecting the right Human Resources (HR) system for your business is a critical decision that can impact your organisation’s efficiency, compliance, and employee satisfaction. It is the backbone of your business, and eventually, it may end up becoming obsolete for your company – whether through business growth, the ever-changing business landscape or just an accumulation of smaller issues.

While there are many excellent HR systems available, there are also pitfalls that can lead to costly mistakes. In this blog post, we will discuss some common mistakes to avoid when choosing an HR system and how our team of system selection consultants can help you navigate this sometimes daunting process.

Choosing for your current business, not your future

One of the most commonly forgotten aspects when purchasing any sort of software is scalability. Growing a business is exciting and can sometimes happen quicker than we anticipate, so having a system that supports your company as it grows – and is flexible enough to suit your ever-changing needs – is vital.

Automation of tasks also frees up a lot of time, so anticipating where you want to use this precious time is important. Making a plan of what you want the software to do for you and what you can therefore do to expand the business, means you know what features to look for.

Be equipped with a list of priorities so that when it comes to researching potential software vendors, you are able to see which ones are able to fulfil your business’s future requirements.

Overlooking integration capabilities

Your HR system should not operate in isolation. It needs to integrate seamlessly with other critical business systems such as payroll, time and attendance, and accounting software. Overlooking integration capabilities can lead to data inconsistencies, manual data entry errors, and increased administrative workload. If your software doesn’t work with your existing systems, it might cause more trouble than it solves and make your team question your choices.

Integration also means being able to accommodate legacy systems – like a payroll system that has worked for years or even a decade. However, it is important not to let these long-serving systems dictate the future. Ask your colleagues what they value about these systems and why they might want to keep them to help guide you in implementing the best system for everyone involved.

Be prepared for these difficult discussions over legacy systems by building a strong case for change. Identify where issues are occurring and time is being lost and ‘pitch’ the new system to your team as a solution to these issues. Find data and forecasting to support your case even further.

Not considering user experience

Creating an HR system that actually helps your team is vital. Forgetting this crucial aspect can mean using extra time and resources on training and can sometimes even lead to resistance.

Try involving those who will be using the system in the selection process by asking them what they value currently and what your system could do better. Before you start looking at a new system and its features, meet with your team to find out what they like and dislike about the current system and use this information – along with forecasting to account for imminent growth – to create a ‘must have’ and ‘would like’ list detailing your findings.

Forgetting compliance & security

HR systems often handle sensitive employee data and must adhere to strict compliance regulations. Neglecting compliance and security features can mean your business could encounter data breaches or legal risks. These problems are costly and time-consuming to deal with and could even be the end of your business.

Our system selection consultants are well-versed in all necessary regulations and security measures, helping you to make important choices with your software. However, it is still important to refresh your knowledge of industry regulations beforehand.

How Phase 3 can help

Once you’re ready to start your HR software journey, head over to our A-Z Vendor Directory to compare our approved list of systems and their features to see what is right for you. Our team of system selection consultants are also on hand to offer impartial advice and match you with the right software whenever you’re ready.

We pride ourselves on our holistic approach, which involves a deep understanding of your business needs and objectives, enabling us to provide expert guidance as you scale. By doing so, we simplify what can be a painstaking process, allowing you to reclaim valuable time for your core business activities.

Our selection consultants have extensive expertise in HR technology, and as an independent firm, our recommendations are solely rooted in our knowledge and experience, independent of any specific software provider.

This blog was written by Phase 3, they are an exhibitor on the HRTech247 Partner floor of the Technology Hall. You can visit their virtual space here