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What kind of HR systems are available?

A buyer's guide to HR Software

As the HR Software Show rolls around the corner once more, the question is no longer "do we need HR technology?" but "what kind of HR technology do we need?" Now that HR software is affordable enough for any size of organisation, from 10 employees to 100,000 employees, the focus has turned to features and flexibility. This month, we look at the various components of HR systems, from the very foundations through to those components that underpin your wider strategy.

The Foundations

At the heart of every HR system is a HR database - basically, where you keep all your employee records. This can be as simple or as complex as you like, and you should be able to drill down to detailed information levels on every employee. On top of that, you can employ Employee Self Service, which is the "customer face" of your system. This cuts out administration, effectively putting it in the hands of employees and line managers, and ensures that everyone follows policy - because the policy itself is held in the system!

If you have an integrated HR and Payroll system, you will notice that much of your data flows from HR to Payroll. Your system must ensure that this is seamless, as it reduces the risk of error.

The Cost Cutting components

HR systems have developed to such an extent that you can 'bolt on' almost anything. Expense Management is one component that can integrate easily into a HR system, sharing data directly with payroll and HR to ensure that not only are expenses paid quickly, but that they are compliant with your policies, reducing expense fraud.

Time and Attendance is also crucial to many organisations, and it is essential that you ask your vendor whether the system integrates directly as part of the overall package. Businesses whose employees 'clock in' and 'clock out' have witnessed significant savings when their systems are integrated directly with payroll, ensuring that everyone gets paid for the work they have done.

The Engager components

Everyone knows that clear objectives and alignment to business strategy and values maximises engagement. So, if this is important to your business, a Performance Management element to your HR system is essential. Indeed, some systems can provide a Learning & Development component that interacts directly with Performance Management, linking training to needs specified in the system.

Once more, the key here is the seamlessness between components of the system. Equally, the reduction in administration is essential for HR teams if they are to focus on an engagement strategy.

So, whether you are looking for a basic system that replaces paper processes, or a bespoke system that supports your people strategies, make sure that you select a system that works for your business, not the other way round!