How to Choose the Right HRIS System

HRIS-Executive Chronicles

Organizations spend a lot of time and money to acquire a human resource information system (HRIS). Because of the high cost of an HRIS system, enterprises need to conduct enough groundwork before committing to a particular system. A quick glance at the HRIS market indicates that there are many systems with different prices and varying methods of operation. The ultimate choice should be based on stakeholder preference, ability to satisfy current needs, and the flexibility to withstand upcoming challenges. Here is how you can choose the ideal HRIS system.

General Ideas

Get a general idea of what it is that you’re looking for. What would you like this system to do? Start by doing some fact finding with your payroll department, your benefits department and all the other departments that will interface with this system. You can pick one or two representatives from each department who’s going to be a stakeholder in this software adventure. This could be in the form of brainstorming sessions or roundtable discussions where they’re be documenting their frustrations and some of the things they would like to see in the new system.


Do your research on what’s out there, like understanding the difference between an HRMS, HCM and HRIS. You would also determine whether or not you want a standalone payroll system or a stand alone benefits administration system, or even a stand alone learning management software. This will take a little bit of time, but if you get the right HRIS buyer’s guide, it’ll go a little bit quicker. So you want to determine what type of HR system that you really want? Should it include the basic human resource information? Should it include payroll benefits, learning management, recruiting employees, and self service? Should it have reports compliance? How customizable is this software? Will you be hosting it in-house or on the cloud? Will it be like a hybrid?

Determine Your Budget

Your budget should be somewhere along the lines of how much you’re currently spending on your system and how much you’re losing from not having that system work to its fullest capacity. Lots of software companies already have their pricing information, which is up front and very transparent, and that will be able to give you a good gauge on how much everything will cost. Please note that even though some software companies are transparent with their pricing, not all of them are very transparent.


It’s time to schedule the demos. Gather your teams and be prepared to sit through these demos with a very critical mindset and really think things through. Again, you’re not ready to move forward to the sales process. You are just demoing and looking at the information and gathering more details on the software.


You’re ready to select your final three or maybe even your final five. Sometimes when you get to compare those software, they start to all kind of blend together and look alike. And as you start to eliminate things on your checklist, then you can narrow it down to your final choice.

Business Case

Now you have to get the person who’s going to be cutting the check for the software to get their final approval on this, and you need a business case. Your business case will include, of course, how much the software cost, but also how much you’re currently losing by not having the system. Demonstrate how much you have to gain by having this brand new system.

Getting Started 

Please think of your preferred vendor as your partner for long term. It’s so easy to get caught up in the pushy salesmen and make final quick decisions. You want a company that’s going to get that software up and running for you and your organization. They’re genuinely there to help you reach your goals, not just to sell you a software product and then they disappear into the oasis.

For more articles, Visit Executivechronicles