Top 50 Mistakes When Choosing an HRM Software


One of the toughest decisions apart from hiring candidates and onboarding them for HR teams is to find HRM software that fits their needs. Selecting HRM software is a detailed, lengthy process. It is essential to understand your buying needs and avoid mistakes that can waste time and money. There are a lot of benefits of HRM software, such as employee growth, lesser workload, time management, reduced errors, and cost-saving. Moreover, HR software helps organizations manage their employees better, with transparency, and high proficiency. Here are the top 50 mistakes HR makes while buying HRM software:

Top 50 Mistakes 

  1. Vague Requirements 

One of the most common mistakes organizations make while selecting an HRM software is not knowing their requirements clearly. Therefore, it is necessary to devote time to requirement gathering before making a decision.

  1. Budgeting

Budget constraints are real. Therefore, based on your requirements, deciding on a budget is essential. It helps you laser focus on your business needs within an approved budget. 

  1. Not Looking Enough

Rushing into getting a process automated via HRM software leads people not to look deep into options. This further leads to a system that does not meet your objectives. Therefore, it is essential to determine if you can develop such a system in-house or if purchasing is a better option.

  1. Scalability 

No business has stagnant growth. Instead, the business needs can vary for years to come. Therefore, it is important to purchase HRM software that is scalable to changing business needs.

  1. Feature-Based Purchase

With the increase in a cloud-based systems, many HRM software gives HRs the independence of purchasing and paying for features they need. Unfortunately, organizations sometimes do not negotiate with software providers leading to having features they don’t need.

  1. Productivity & Efficiency 

An HRM software aims to make the HR team productive and overall process efficient. If your system does not allow you to do it, you have opted for a system that is not a true HRM system.

  1. No Employee Communication 

Many organizations just go into change without giving much thought to employee willingness to switch to such software. Therefore, before finalizing the purchase, ensure that you communicate the change and chosen software with your team.

  1. Security Loopholes 

There are tons of HRM software in the market. But not all of them are secure. Since your employee data is sensitive, ensure that you select secure software and come with required security certificates.

  1. Understand the Software

At times, organizations do not explore the software they are purchasing. Before purchasing, spend enough time with the software team to understand the system’s workflows. 

  1. Setting the Wrong Expectations 

It is essential to set your expectations correctly. It is better to list them in detail. Setting wrong expectations leads to getting HRM software that is nothing but a resource wastage.

  1. Stakeholder Approval 

Every major step an organization takes needs some senior management approval. Unfortunately, at times this process is overlooked due to being in a hurry. Therefore, it is important to get approval from stakeholders or at least setup requirements after discussion to save time.

  1. Accessibility 

One of the most essential features of HRM software is accessibility. Accessibility makes it easier for differently-abled people to access the system without any difficulty. Ensure that software is accessible to everyone. 

  1. Customization 

A good HRM software helps you to customize it as per your needs. Furthermore, it gives employees the power to have a work view that suits best their needs.

  1. Customer Support

Just as selecting software that fits your needs is important, it is important to ensure that it has strong customer support. Having strong customer support is as important as features. Imagine getting issues or facing trouble but no one to answer?

  1. Design Workflows

Having the power to design workflows that meet your organization’s needs is what sets HRM software apart. Although not all software offers such workflow designing, you can find the one that can opt for it.

  1. Mobile Compatibility 

Not all HRM software is compatible with mobile devices. Therefore, ensure that the HRM system you purchase is available on commonly used mobile devices.

  1. User Roles 

Ensure that your HRM system allows you to assign specific user roles such as employee or admin for specific features. 

  1. Design User Roles 

Not all HRM systems give the power to design new user roles. Therefore, opt for one that allows you to design new user roles. It also saves the amount for features that are used by specific employees.

  1. Compliance 

Multi-region support is essential as many companies nowadays have multiple offices. Ensure that your system is compliant with the rules & regulations of various locations to save yourself from lawsuits.

  1. Real-Time Reporting 

With changing needs of the world for insights for better decision-making. Not many software nowadays offers such features. It is one of the organizations’ common mistakes, as insights and analytics can lead to better decision-making.

  1. Data Forecasting 

Data forecasting is one of the most needed features that organizations require. Combining them with data forecasting can be a plus point to get the best out of your decision-making skills. Hence, organizations must ensure that their system forecasts data.

  1. Go Paperless

Many HRM operations are going paperless; therefore, it is essential to find software that allows you to do this. Unfortunately, at times this non-functional requirement is overlooked. Hence, you end up with software that does not meet the organization’s needs.

  1. Automated Reminders/Notifications 

Keeping track of different HR activities is a difficult task. Therefore, in-app reminders and notifications help HR on track with their tasks. Also, it helps to perform employee-related tasks faster and more efficiently. 

  1. Candidate Interviews 

Although most organizations don’t think of candidate interviews as an essential part of HRM software if you can find an HRM software that allows you to do so, buy it instantly. One of the trickiest tasks that HR needs to perform is conducting and scheduling an interview. If a single system can do it all, it is the best investment you can make. 

  1. Calendar Integration 

Meetings are an important part of HR activities. However, multiple meetings with so many employees can be hard to keep track of. However, if your calendar is integrated into your system, you can easily keep track of all meetings and activities.

  1. Automated EEOC Compliance

EEO self-identification form helps new employees know that organization is strictly against discriminatory practices. However, frequently, such processes are offline and hence, overlooked. Therefore, find an HRM software that allows such policy tracking.

  1. OPD Claim Track 

OPD claim is an important benefit provided by an organization. However, this process is sometimes manual, and the finance department can face a hard time tracking it accurately. OPD and medical claim forms are necessary to ensure HR and finance have a synchronized process.

  1. Attendance Tracking

An integrated attendance tracking feature is necessary to make the attendance process easier. However, at times HR does not find this feature necessary. But if you have a large organization, this feature is a must and the biggest feature overlooked by HR.

  1. Training Directories 

Training directories ensure that the relevant training is suggested to relevant employees. In addition, the HRMS system with a module for learning management reduces the overall burden of employee learning and tracking.

  1. Company Policy Tracking 

At times HR has to continuously communicate company policies to employees. Still, there is a communication barrier leading to miserable situations. Therefore, opt for HRM software that lets you track company policies effectively. 

  1. Email Reminders

Email reminders make it easier for employees to have much more access to an internal system. If you are away and can’t access the system itself, email reminders can be a lifesaver. One mistake that an organization makes is looking into internal features and not the external features of the system.

  1. Online Pay Slips 

Online payslips and employee salary tracking is the quickest way the HR and other departments of the organization can work in harmony and without any dependency. Hence, find a system that allows online payslips and processing.

  1. Client Management 

One of the critical parts of the HR job is to manage clients as well. This process is often overlooked. With so many contracts and their versions, it is essential to have a system that lets you track everything. However, the still organization overlooks this feature.

  1. Vendor Evaluation 

Evaluate vendors on different platforms so that you don’t end up with a system and an organization that does not value your requirements.

  1. Value for Money

Find software that has features that meet the amount you pay. You get the full value of money with utmost satisfaction is necessary.

  1. Financial Analysis 

Financial analysis helps to keep track of the current budget and spending nature. Therefore, ensure that you can perform a detailed financial analysis. 

  1. Employee Allocation 

Find an HRM system that provides an easy way to allocate employees on the project, and hence their overall attendance and engagement are tracked accordingly. 

  1.  No Feedback System 

Find an HRM system that allows employees to submit anonymous and direct feedback so that your organization has complete transparency and trust. Moreover, the feedback system gives employees confidence that they are heard. 

  1. Access Controls 

It is essential to purchasing an HRM system that allows access controls for various user roles to have an efficient process. Moreover, ensure that admin control is in safe hands. 

  1. Third-party Integration 

Third-party integrations help organizations have a synchronized flow. For example, integrations with QuickBooks and Zoom make the payroll and video calling process efficient. Also, if it can integrate ATS systems, hiring can become easier than ever. 

  1. SMS Alerts

It’s not necessary that you may have an internet connection at all times. Therefore, having a system with SMS alerts can ensure that everything is on track. Moreover, it helps to keep track of notifications and reminders. 

  1. No Message Communication 

Opting for a system that does not allow direct email or SMS replies can be a turn-off as this allows access when an individual cannot use the system. 

  1. No Claim Management 

Benefit claim is an essential part; therefore, having a claims management system is a must. 

  1. Design & Ease of Use 

A user-centric design is necessary as it reduces the time to learn the system without much hassle. 

  1. Task Management

Having even a small feature for task management can reduce having a different application for HR-related tasks. 

  1. Online Portals 

Opt for a system that you can access from anywhere as Desktop-based applications can have system dependency. 

  1. Lack of Administrative Process 

It is essential to have a system that allows complete control over the administrative process. In addition, your organization needs to have ownership rights and not the software company itself. 

  1. Employee Engagement Capabilities  

An efficient HR system lets HR have an employee engagement module with an all-in-one solution for employees and the organization. 

  1. Vendor Biasness 

At times, the demo is so great that you might want to opt for that HR system only but beware that the demo is great at times, but the system and support itself are not. So don’t get vendor biased based on just the demo. 

  1. Award System 

An employee award system for employee engagement and employee appreciation within the teams can be a plus point. It is one of the effective ways to ensure a positive environment. 


Overall, HRM software is not just software with “HR-related” features. To have a synchronized organizational process with complete transparency, it is essential to make sure you don’t make the same mistake as many organizations make. First of all, ensure that you spend enough time on requirement gathering. Even if you can list down the basic features and currently want to buy a system, make sure you buy a system that gives you space to extend in the future if needed. 

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