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How to choose the right HR software for your business

Selecting the right HR software for your business can seem like a daunting task. With so many options available, how do you know which is right for you?

In this blog post, we will help you navigate the decision-making process and answer some of the most important questions you should ask yourself when choosing HR software. We’ll discuss what features to look for, how to determine your business needs, and how to find the right software solution for your company. Let’s get started!

When looking at HR software, it’s important to keep in mind the specific needs of your business. Not all companies are the same, so not all software will be a good fit. For example, if you have a small business with only a few employees, you won’t need as robust a solution as a company with thousands of employees.

Steps to take internally when selecting a HR software solution

Define your internal stakeholders

To do this, it is important to consider those that will be using the system and their needs. Create a cross-functional team; we suggest HR, IT, Finance and a member of the senior Leadership team. Ensuring that you have input and, most importantly, buy-in from the functions involved will benefit in the long term.

Understanding your requirements

Each stakeholder group will have its own set of requirements from a HR software system. IT may need the system to have a certain level of security, a specific hosting location (i.e. EU or the USA), or a need for the system to link via API to other systems.

Whilst the HR team will need to consider existing HR processes etc. Finance will have a keen eye on the budget but will also need input on holidays, rewards, etc.

Defining your budget

Understanding what you are willing to spend on a HR software solution is important. This will ensure that you do not fall in love with a system which is completely out of your price range. It is also worth considering any ongoing costs associated with the HR software, such as user licenses, support contracts, or training requirements.

It is also important to consider and measure the cost/time savings that will be made through the use of HR software. Remember this should be considered an investment and not a cost.

Reviewing the available HR software solutions

There are many different types of HR software available on the market. The type of software you choose will depend on the specific needs of your business. Here are some of the most popular types:

  • Applicant Tracking Systems (ATS) – these systems help businesses manage their recruitment process, from job postings to hiring.
  • Employee Self-Service (ESS) – ESS systems allow employees to access and update their personal information, view their payslips, request time off, and more.
  • HR Information Systems (HRIS) – HRIS solutions provide businesses with a centralised database of employee information. HR professionals can use these systems to track employee performance, manage payroll and benefits, and more.
  • Learning Management Systems (LMS) – LMS platforms help businesses train their employees and manage employee development.
  • Performance Management Systems – these systems help businesses track and measure employee performance.

Narrowing down your options

Now that you know the different types of HR software available, it’s time to start narrowing down your options.

Using your team of stakeholders, define which of the above software types are required, remembering that you may not have to compromise; many solutions cover a number if not all of the elements. Before looking at providers, make a list of your business needs. We would suggest that you make a list of non-negotiables and nice-to-haves. This way, you can quickly whittle down the number of providers based on your essential requirements.

Alongside the HR functionality, other features you should look for in a HR software solution include:

  • Ease of use – it should have a user-friendly interface that is intuitive and easy to navigate.
  • Scalability – as your business grows, the HR software should be able to scale to meet your needs.
  • Robust security – the software you choose should have the ability to protect sensitive employee data from unauthorised access
  • Support- the software you choose should come with excellent support. If you have any questions or problems, you should be able to contact the software provider for help.

Making the final decision on your HR software solution

Once you have considered all of the factors and features, it is now time to look for a HR software provider that fits the brief. There are many options available which is why following the above steps is important. At hr inspire, we understand that navigating this process can be a difficult task.  This is why our team of experts  is on hand to help you select and implement the correct HR software solution to fit your business needs. For more information please visit our website or contact us at

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