What you need to know about buying HR Software: Point Solutions

You want to buy HR software but you don't know if you need a point solution or a full suite? Read this now...

So you have decided that your business needs a HR Software Solution (HRIS or HCM)...

It is a pretty exciting step, a whole new world of time consuming admin tasks being handled with ease by an automated HR system. Like any major investment, whether it is a house, car, or a software product to make your work life that much easier, it is an emotional purchase that can go horribly wrong if not done well (like this one time I bought a second hand Renault without getting a mechanical check).

If this is your first time buying, there are some things that are important to know about how these magnificent platforms work. It is important to understand not only your needs, but the dynamics of how HR platforms are set in order to get the right match.

I have been working with HR systems for years now, both point and full suite (I will explain those differences soon), and have worked with hundreds of companies to get systems in place.  I have seen some set their system up like clock work, and when done right, it is a thing of beauty.  I would sometimes call these customers years after to hear how well the system is still working.  

On the flip side, I have seen businesses under prepared who did not have a proper understanding of their needs. Which completely messed up their roll out after purchase, and like a botched up plastic surgery job, the end result is far worse than what was already in place.

In more recent times, I have been speaking with businesses who are buying their first HR system.  Some have staff who have used other systems in the past, others are completely new to it.  What I am aiming to do is help with both of these cases.

I'm going to be starting a new series on this blog, where I will address key points on how to navigate your way through the HR software buying journey.

Let me make it clear, this is not another point solution vs full suite debate. What I want to do is to help you understand your product options, pricing models and the different hosting technologies.

So let's delve right in, shall we?

Point Solutions

Point solutions, also known as, best of breed, focus on one particular function within HR (ie. Recruitment, Onboarding, Learning etc).  Best of breed is a label they give themselves to sell the perception that they just focus on being the best at that function. While this may be true sometimes, in many cases it isn’t, and even if your focus is on one function (such as recruitment), don’t discount a full suite provider to address your needs.  

I'll admit point solutions can be quite flexible and can address your specific need quite well, keep in mind that their whole R&D is focused on one function.  Also keep in mind that they may not integrate well with other systems, and buying multiple point solutions today can lead to headaches down the track when you try putting your solutions together.

So it is important to weigh up and ask yourself, do point solutions work that much better than a full suite at that one function I need to address?

You've reached the end of this blog, now what?

Check out Part 2! But if you don't want to, why not download this free eBook, "The Ultimate Human Capital Management Buyer's Guide", that shows you how to choose and implement the right HR software for your organisation's needs.

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