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How should I evaluate and choose the right HR software? Product features or pricing?
From India, Pune
Dinesh Divekar

Dear Sheetal,

Suppose, you have received a quotation from the three vendors i.e., A, B & C.

Step 1: - Identify from your side which features of each software are useful to you. Identify the features that you do not require. Find out what will be the savings per month by using the software. Please note that calculation savings per month, is a very important calculation.

Step 2: - Approach each vendor and tell them to requote with (a) removing the unwanted features and (b) addition the features you require but they have not quoted for

Step 3: - Now you should have three quotes wherein each quote has a features that you require. More or less these should be identical except the price and after-sales service.

Step 4: - Now you have two options to select the software. One is to calculate Break-even Point or select the software by calculating Total Cost of Ownership (TCO)

Step 5: - Calculate the Break-even point as below:

a) (Fixed cost for software A)/(Savings by software A in one year) = Break-even for A

b) (Fixed cost for software B)/(Savings by software B in one year) = Break-even for B

c) (Fixed cost for software C)/(Savings by software C in one year) = Break-even for C

You should choose the software that has the least Break-even point.

You can select the software by calculating the TCO also. However, it is difficult to explain the procedure. Please study on your own.

All the best!

Dinesh Divekar

From India, Bangalore


Just wanted to add to what Dinesh Divakar has said. His suggestion is very helpful and valid.
I wanted to add that you could also examine the need for CMMI inclusion in the software. That will help in the long run.


From India, Hyderabad

Choosing the right HR software is a challenging task.

As an HR I have been working with several HR software. I believe the best way to identify the right HR software for your organization is to start with evaluating the requirements of the organization and look for applications that have features to fulfill the requirements. As there are several applications that provide numerous features. Identify the features that your organization can utilize and look for the most feasible options available in the market.

Opt for a trial session. A trial session is essential because even an expensive HR software might not be compatible with the existing applications. My personal experience, I have been using HROne. It has been a one stop solution for me. You can try HROne as an option.

From India, Noida

Dear Sheetal,

I have a very straight forward answer for your query...

If I ask you a question, why do you need a HR software in the first place? Your answer could be,
1. I am / my company / my employees are facing 1,2,3 problems and I want to solve those problems.
2. I want to minimize effort and save time
3. I want to maintain accurate data and reports for my management & statutory purposes

Out of the above, 1st point is the foremost important purpose of the software system. Once you address your pain areas and find a good solution provider (HR Software), then you will be confident of rest of the points. So, find out the vendors' solutions which solves all/most of your problems and do a shortlist.

The 2nd point is also important, because once you get your work done efficiently use the software with minimal effort & time, then you will have good amount of time to concentrate on other important HR activities.

The 3rd point is the result of the first two points which enhances you to analyse the data for future planning, recruitment, attrition, payroll cost, etc...

So, please consider the above points along with other suggestions made by experts in this thread.

Hope you would find this information useful.


From India, Madras
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