If you have read any articles on selecting an HRIS, HRMS or HR software programs, they all say you first have to determine your needs. The phrase is used so often it's almost a cliché. I am not saying that people who say this are wrong; far from it. I am just amazed at how little depth is behind the words. Determining your needs for a human resource program is extremely important and it's no easy task. In order to find a system matching your needs, you need to be as detailed as possible with creating them. The better the job you do on this step of the process, the more successful you will be with your final decision.

Why is determining needs so important for HR Software?

In my research, there are over 60 US or Canada based companies that offer an HRIS, or HRMS software application. If we include human resource outsourcing and service bureau companies in this list, you might very well be talking about over two or three hundred companies. Your job with determining your needs, as I see it, is to narrow this list from several hundred companies to a handful and then, following your evaluations and research, find the system that offers the closest match to your needs, requirements and budget. When you look at "determining your needs" in this way, it sure sounds like more than a simple cliché.

As someone who has sold HR software for more than fifteen years, my first meeting with a prospect was to determine what their needs were for an HRIS application. Most had something written down but rarely provided enough detail. Following, is a typical needs list from one of my customers.

Looking for an In house or hosted HRIS application that meets the following needs:

1. Tie to our outsourced payroll application 2. Windows based 3. Easy to use 4. Salary History 5. Track dates for review, birthdays, and anniversaries 6. Salary Grade Analysis 7. Benefits information 8. Custom fields or custom screen options 9. Affirmative action tracking 10. Track training information 11. Employee Self Service Option 12. Easy to use report writing with the following standard reports: • Turn over reports • Birthday reports • Anniversary Reports • New Hire Reports • EEO Reports • OSHA compliance reports

Does this list look familiar? I am willing to bet that this list is very similar to your own. I'm going to let you in on a little industry secret. All of the vendors who have sold HR software systems have heard this exact list of needs hundreds, if not thousands, of times before. So it's not surprising that almost all of them offer these exact capabilities. Some meet each need easier or in greater detail but on the surface they meet all of these capabilities. Your list of sixty HRIS vendors is still pretty much at sixty vendors.

Going to an HR software vendor with the list above is sort of like going to a car dealership and saying you want a car with an engine, seats, four tires, and that runs on gas. They all do it.

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