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HRMS Selection HRMS Selection

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Human Resource Management Software Evaluation

Objectively Rate and Rank HR Vendors

Gather all the submissions and check the response checklist. Did the vendor meet all the requirements of the RFP request? Create a rating matrix to quantitatively qualify the vendors. Use a scale from 1 to 10 or some other range that will allow you to objectively differentiate responses and proposals. Having a 100 point grading scale is familiar to most people and will facilitate your analysis. So if you have 10 criteria, you may give each a maximum grade of 10. If you only have 5, you might allow 20 points for each, and so on. Some criteria should have more weight than others. You might give the support issue a lower weight then the demo. The company’s financial viability may have a higher impact than the fact that the RFP response didn’t follow the format to a "T". Assign a percentage weight to each criteria (the total should equal 100%).

Criteria matrix example:

HRMS Vendor 1
HRMS Vendor 2
HRMS Vendor 3
RFP Score & Fit      
Software Demo Score      
Customer Support Score      
Vendor Viability      

Calculate each vendor’s score and final “grade” based on the maximum points and weight for each criterion. Your results may include some qualitative judgments, but don't let subjective criteria trump objective measurements. You may have a better rapport with one of the sales people or have had a prior working relationship with the vendor. However, the quantitative analysis should go towards supporting that qualitative judgment.

HR Software Contract Negotiation

The HR software selection process doesn’t end with selecting the vendor. Once the vendor designation has been made, many organizations delegate the remainder to the purchasing department or legal team. However, the HR selection committee should stay involved. At this point, the project team will have the most knowledge of the HRMS value, the comparative analysis, the expected payback, the vendor and overall expectations—all factors that should be closely considered when negotiating a contract that seeks to reduce risk and achieve a fair price. Based on their intimate knowledge, the project team members offer tremendous insight for the negotiation points and be particularly helpful in knowing what they are willing or not willing to compromise.

Develop Preliminary Implementation Plan

Although the development of an HRMS implementation plan is usually left to the implementation team, it's not unusual that a few members of the selection team become part of the implementation team. The selection team will have enough familiarity with the requirements, the stakeholders, budget and timeline, that they can conceivably develop a high level implementation plan even before the HR software contract is complete.

In fact, requiring an initial HR software deployment plan from the vendor, prior to completing the HR software purchase, is a best practice that consultants and veteran Human Resource leaders routinely use. A clear roadmap sets future budgetary expectations, facilitates deployment planning and gives upper management more confidence in the project, which then enables them to further show support and commitment.

Selecting the best HRMS solution for your company will take planning, time, commitment and resources. It's unquestionably a painstaking exercise but executed correctly, it will yield a high financial payback and sustainable benefits that will be recognized by every employee in the company. End

HRMS SelectionHRMS RequirementsHRMS Negotiation

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Requiring an initial HR software deployment plan from the vendor, prior to completing the HR software purchase, is a best practice that consultants and veteran Human Resource leaders routinely use.


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