Choosing HR Software: The 5 Worst Mistakes


With an efficient human resources management system, you can lower administrative burden, boost productivity, improve efficiency and retention rates, standardize processes, and maximize employee morale. Such a system facilitates management of employee information and enables communication with myriad business systems.

However, choosing the right HR software is full of challenges. Here is a list of the common HR software mistakes that you might want to avoid to maximize your investment.


1. Failure to determine needs

A majority of businesses make hasty choices when it comes to choosing HR software, without first determining their needs. Make a list of all of your business needs and try to determine the need for such a software solution. Determine why need HR software and what purpose it might solve in your organization.

2. Not prequalifying vendors

Most businesses make the mistake of not prequalifying vendors. This is one of the biggest HR software mistakes that you may like to avoid. Once your needs are determined and you have a list of vendors for review, you may like to prequalify vendors.

Most businesses make the mistake of not prequalifying vendors.

Ideally some of your needs may eliminate some vendors from your list if they do not fulfill all of your required services. An integrated payroll system or interface may be required for your existing payroll.

On your first exchange of information with the vendors, you may want to inform them that you have so and so expectations. If their product does not meet your specific high level needs and budget, there is no need for setting up a demo. This will save you a lot of time.

3. Not looking at enough systems

Consider exploring at least six to nine vendors. As you prequalify these vendors and review the systems, your list would be narrowed down to two or three products that fulfill your exact requirements.

Moreover, reviewing different systems will make you more knowledgeable about the capabilities of each one of them and help determine which one serves your purpose best. Poor quality data results in misinformed decisions, leading to operational inefficiencies, damaging the brand reputation, and affecting customer satisfaction and revenue.

It is crucial to establish clear-cut procedures that define data entry. It will help to define when and how data will be validated so that outside vendors are used for the process and corrections made to deficiencies.

Quality decisions are the result of quality information that ought to be reliable, valid, useful, and timely. More often than not, useless reports find a place in the C-suite. The worst thing is the data that originates from HR is not cross-referenced for quality.

With inaccurate information, the quality of data cannot be trusted. As a result, the data cannot be used or relied upon, causing significant problems for business intelligence. Poor data results in poor performance.

4. Failure to properly administer data security

Operating ServerData security issues are a cause for big concern, especially for cloud-based human resource solutions. Most enterprises fail to accurately administer data security.  Breaches in cloud stored data can cause considerable problems. Though cloud solutions might prove cost effective, these are vulnerable to breaches. Data security of on-premises systems remains a big issue.  If you fail to properly administer data security, it could prove costly for your business.

Security verifications with SaaS HR solutions include reviewing annual independent security audits and vetting the Information Security Management System.

5. Ignoring evolution

If you focus only on present requirements, without paying attention to future needs, it can drastically reduce the lifespan of your HR software solution. If you choose a solution that focuses on future growth and development, it would be a successful investment. However, if you pick HR software that is not scalable, it cannot cope up with the expanding needs of the business and risks failure quickly.

It is critically important to identify all stakeholders and their business requirements, processes, and strategic goals that will be affected by the HRIS.

Avoid integrating a poor process into your human resources software. It isn’t the best solution to blindly use HR solution for automating inefficient processes. Make sure all of the processes are close to optimal.

Though the needs for your Human resources solution may evolve over time, it will help to know up front the HR system’s capabilities.

At ITQlick, we are a team of highly experienced software experts, guiding people like you through the choice of the best HR software. We will help you avoid common HR mistakes. Additionally, here’s the latest trend in HR Software and Mobility.