If you’re in the market for new human resources software, you’re not alone. Many companies each year are forced to look for new solutions to handle their payroll and HR. Whether you’re looking at software for the first time or looking to replace your current software, there are features you need to look for. Software Advice, a company that provides listings and reviews of payroll and HR software systems, recently surveyed a portion of their customers to find out why companies are making the switch.
The top three conclusions were:
- Almost half of buyers are using manual methods like pen and paper, or spreadsheets for their HR tasks.
- Those who are using manual methods are looking to software to improve their organization and automation. Those who already use software simply want more functionality.
- The two most commonly sought out functions among buyers are personnel tracking and recruiting functionality.
The biggest pull for buyers who currently use manual methods is the ability to have a more organized and efficient process. You can see in the graph below that the next pain point is nearly a tie between lack of automation and having to sift through paperwork.
Also, if your company is among those who are still using manual methods, it is important to note that the American Payroll Association estimates that errors from manual methods cost companies about 1 to 8 percent of total payroll. This means you could skip the manual methods and invest in a software solution and save the money you’re losing in erroneous tracking methods.
Conversely, buyers who are looking to replace their current HR software have needs that vary greatly from those who are doing HR manually.
In the graph above you can see that the need for more functionality is the most common pain point for current HR software users. This leads us to believe that companies desire to work with a software platform rather than one that hosts individual features. For example, companies want a provider who can supply payroll, time and attendance, HR, etc. That way they can continue to add on features they need and their software can talk back and forth as opposed to having separate modules for all.
The most commonly sought out feature in HR software is personnel tracking, which is then followed by recruiting. Personnel tracking is a great way for HR to create individualized profiles for each employee in order to track information such as resumes, W-2s, time off, and so on. For the recruiting portion of the software, companies are looking for a software that tracks applicants, allows them to post job openings, and hosts resumes and cover letters.
As you can see above, a wide array of functionality is requested when buyers are shopping for HR software. This is why many buyers are shifting more toward an HR suite instead of separate software modules; the ability to add on features as you need is a great perk and saves a company from having to evaluate their software if they need more functionality later on.
Are you in the market for a new HR software? Let us show you how we can help!