How To Choose the Right Cloud HR Software In 2021

Choose the right cloud HR software, 65% are still using an unfit. Speaking of everything from a technology perspective, precisely the things no vendor would ever tell!

Technology (in this piece- HR technology) is continuing to be a challenge. In the past decade and even now; the biggest roadblock in the way has been and is the less or wrong knowledge of HR technology. Companies tend to get swayed by what’s trending and popping on their screens; precisely the reason why according to a Deloitte survey, 65% of the respondents said that their HR software is not enough and helps them only overall objective achievement.

The same happens because all the company stakeholders are too gravitated towards the HR and payroll software; with more numbers to flaunt. It is not the numbers that make a cloud HR software the best but several other apparent and hidden traits; that no vendor talks to you about in the live demo (who would want to talk about something they might not have?). They are there to sell their product so that they will present the best possible picture of the software. The difference lies in how you take it- you interpret, research, analyze, compare, or simply accept?

Choosing the Right Cloud HR Software

How To Choose the Right Cloud HR Software In 2021

In this article, I will walk you through some of the cloud features; that matter the most to make a cloud HCM suite a perfect fit for your business.

In the later part, I also share a chart you can use to analyze and compare software; concerning your business-specific requirements.

Before we begin, let us look at the real problems as to why most of the HR and payroll software; fail to fit and turn out to be inadequate after all the big promises. 

Not a Launchpad. A Destination!

The primary intent of all the HR software vendors once they switched their enterprise based non-cloud services; to cloud-based ones was to deduce the need for the IT team every now and then; to maintain the software, improve management of data, use experience, integrability. But, the attempt has not been very successful in each of these categories.

Adoption- How is the UI?

Most of the companies have various generations working with them. It is necessary first to make sure that the software is easy to use and navigate through. You must test the UI (instead of going by what the sales expert claim) on your employees; the millennials, generation Z, and others.

Integrability- How flexible cloud HR software is?

Years of innovation and series of advancements, still only 5% of respondents in a Deloitte survey; were able to claim their HR and payroll software as fully integrable firmly. Before considering any HR software or even a standalone payroll software; you must ask how many software applications ERP, financial, payment related and other apps; you are using are the software integrated with. Otherwise, your processes are at risk of becoming more erroneous, time-consuming, and complex.

Scalability- What about the coming years of growth?

Many cloud HR software is not truly scalable. The company would try to sell you their HR software still. Hence, it is only and only your duty to ask how scalable it is; because your company will grow over the years in every aspect. You can also ask the vendor to share some references or get in touch with them yourself.

ABC cloud HR and Payroll software- Will it seamlessly fit in the company jigsaw?

Sometimes a cloud HCM suite may tick all the things I mentioned above; but still not be the best for your business. You can crack this code with the simple feature analysis table I am sharing with you below.

To make the same; you first of all think of the features and modules you are looking for and then pen them down; they can be attendance, payroll. Now, you further drill down based on your industry and work model your company follows. For example, if I take the example of HROne (the company I am currently working with); I will write under these modules features like geo mark attendance, compliance as per different states, and more. For instance, if you work with contract-based workers or have employees working in different shifts; you would also want an auto rostering feature. 

ABC Cloud HR Software

Features (expected)Geo mark attendance, provision for regularization and OD  Three-dimensional check, compliance with different statesReal-time expense update, auto travel distance calculation
 Yes/ NoYesNoNo

You make such tables for every software you are considering and not able to choose between. A table like this would give you a clearer picture of your expectations/ requirements; and which software can fulfill them optimally. You can also try requesting the vendor, if possible; to customize or add a particular feature you want to close the deal.

My Final Take

29% of companies still do not use any system, be it cloud-based or on-premise. It’s not just about the HR or payroll software vendors but also about us. When we as end consumers do not question or keep our desire for more alive, we end up settling, and that is when the vendors also start finding themselves in a comfortable place in the market. The aim should be to be an active customer questioning the usability, and communicating the vendors exactly what they lack. While some may not take that seriously, some will use it to disrupt the market and provide you and others with the best.

Lastly, for all the HR tasks a company performs, the HR software should be treated as the destination and not a mere medium to launch those tasks or complete them!

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