Choosing the right Human Resource and Payroll Software for your business can be a daunting task as there are so many applications available today to choose from.
But with the perfect fit, your company’s productivity will sky-rocket, and you will be able to focus more on managing other aspects of your business. This article outlines some key factors that you should consider when choosing HR & Payroll Software.
The Basics
Get to know your business processes first. HR and payroll systems are designed for specific types of organizations. Before you begin shopping, you should clearly understand the structure of your organization, including how it is organized, the nature of its employee relationships, and the type(s) of work performed by its employees.
For example, suppose you have a large workforce spread out over multiple geographies or seasonal workers subject to time-off limits. In that case, your needs will differ from those of an organization with no geographical limitations and year-round staff.
You should also analyze the fundamental business processes related to human resources management (HRM) and payroll to gain a clear understanding of the needs, expectations, and challenges in these areas.
The analysis includes identifying how your employees are compensated, getting an overview of all your HR initiatives, generating pay stubs using a pay stub maker, determining where employee data is stored, and determining which processes you want automated.
Do You Need HR or Payroll Software?
If you are not sure whether your organization requires an HR or payroll application, ask yourself the following questions:
Can my employees view their personal information and generate reports containing their own data? Can managers report on employees’ performances? Do I need to track vacation accruals and sick time for my employees?
If you answered yes to any of the above, you would need an HRM application.
If you answered yes to any of the following questions: Can I generate a list of my employees and their salaries? Does my organization maintain records of time worked by my employees?
Do I need to calculate payroll taxes for my employees, including federal income tax withholdings, state withholding taxes, social security taxes, Medicare taxes, and unemployment insurance? Does my organization make any other types of periodic payments to employees? Do I need an automated system for generating payroll checks or direct deposit pay stubs?
You will need Payroll Software.
What are the Different Types of HR & Payroll Software?
There are various types of HR & Payroll software available today. Some applications offer one comprehensive system that addresses all aspects of human resources management, while others are designed to address specific areas, such as payroll processing or leave management.
These different types include the following: Full-service HR & Payroll Software, Cloud HR Software, HR Management Systems, Payroll Software, Combined HR & Payroll Software.
How to Choose the Right HR & Payroll Software for Your Business?
The key factors to consider when choosing an HR & payroll software:
1. Customer Service and Support
If you’re not happy, nobody is happy. Period. Look for companies that invest in training their customer care representatives to help you find the right system faster through better communication and problem-solving skills. Also, look for a company offering training and certification programs for installing, using, and maintaining the software itself.
2. Functionality
You should consider what features are best suited to your needs before looking at specific products.
3. Product Pricing
HR and payroll software is not inexpensive but remember that investing in a good solution can provide you with ongoing savings and productivity gains.
4. System Ease of Use
Look for a system that is intuitive and easy to use. Some HR Payroll software can be user-friendly, but others are designed for specific roles within the company (i.e., managers, employees, or administrators).
Final Thoughts
Whichever software you choose, make sure that it meets all your needs. Understand what your present and future needs are, think about your company’s growth and how this will affect these areas. You might be lucky enough to find a one-product solution, but if this isn’t the case, it is worth considering an additional purchase in the near future. Don’t get tied to a supplier; look at various products and ask for client testimonials or contact people who have adopted the product in the past.
