How to choose the best HRM platform for your company

Hours spent wrestling with timesheets, fixing payroll mistakes or chasing down missing forms sound familiar? If so, HR management software is an investment that will pay for itself thanks to long-term benefits like saved time, reduced errors and an improved employee experience. 

In fact, our 2024 Power of Personio report found that by using Personio, teams see an average of:  

• 42% monthly time savings on HR data updates

• 38% time savings on HR workflows like onboarding and approvals

• 31% savings on HR costs

• 24% reduction in time-to-hire

• 22% higher employee satisfaction

But how do you choose a tool that’s the right fit for your business? Let’s take a look. 

The following steps will help you evaluate your needs and weigh software options so you can choose the right HRMS for your team.

Automation frees up time for your HR team to focus on higher-value tasks that impact your company’s growth and culture, like employee engagement and retention. So before choosing HR software, pinpoint which tasks are bogging down your team the most. 

Here are some questions to ask yourself to get started:

1. Which areas of HR require the most manual input from your team?

2. Which HR tasks consume the most time on a weekly or monthly basis?

3. Which admin tasks take up the most time but don’t directly contribute to employee engagement or business growth?

4. Are there processes that frequently cause delays or bottlenecks in your HR workflows?

5. Where do human errors most commonly show up in your HR processes?

6. Which HR reports are most time-consuming to generate?

7. Which employee-facing tasks could benefit from a quicker, automated approach?

8. Do you spend too much time on compliance tracking and keeping up with legal requirements?

Additionally, pay attention to feedback your HR team members and employees give about current HR processes. Which issues and inefficiencies do they most commonly highlight?

With so many different types of HRMS options available, it's important to do a little homework to figure out which one best aligns with your team’s unique needs.

If you’re a small business, you probably want something intuitive, budget-friendly and easy to scale. Larger businesses or those in niche industries might need a platform, with more specialised features, like advanced payroll or compliance tools.

Take some time to think about whether you need an all-in-one solution or if simpler software that integrates with your existing tech stack makes more sense for you. The goal is to find a platform that fits your current needs while being flexible enough to grow with you.

Setting a clear budget upfront will help you avoid falling for a platform that’s out of reach. Think about what your team can realistically invest in–not just in terms of the software cost, but also any additional expenses for training, implementation or ongoing support. 

Also note whether the platform comes with all features included; otherwise, you may have to purchase certain features separately as add-ons. The same goes for integrations, so pay attention to if the platform connects to all your existing business tools regardless of the plan you choose.  

Before you start comparing HRM systems, take a moment to think about the features and integrations that are must-haves for your business. In other words, what are you unwilling to compromise on?

For example, imagine you run a retail chain with multiple locations. Tracking employee attendance and managing shift schedules across stores can be a nightmare without the right tools. In this case, a must-have feature could be built-in time and attendance tracking that ensures correct payroll data. 

Similarly, if your finance team relies on a specific accounting tool to run payroll and manage expenses, choosing an HRM system that syncs directly with it can eliminate hours of manual data entry and potential errors.

Having this list will guide you through the decision-making process so you can focus on the solutions that will have the greatest impact on your workflows (and not get distracted by flashy features you don’t need).

Discover an all-in-one solution that syncs with your most essential business tools

Personio helps you manage all your most essential HR processes and integrates with over 200 tools to keep your workflows connected. 

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After researching HRMS options, create a list of tools that meet your requirements. Aim for quality, not quantity, and choose just a few promising platforms (no more than five). 

Then, reach out to the sales teams to get the information you need and schedule product demos. This gives you the chance to ask specific questions and evaluate their customer support to see if the platform is truly a good fit before making your final decision.

Now comes the fun part: testing out the platforms. Many HRM tools, including Personio, offer free trials. This is a great way to experience the platform without the pressure of committing to a contract. 

Use the trial period to explore the platform’s core functionalities, test its ease of use and assess how well it integrates with your current systems. This will give you valuable insights into how easy it will fit into your existing workflows and help you make a more informed decision.

The impact of an HRM platform stretches far beyond the HR department, so you should get buy-in from everyone who will be using it. While HR teams are the primary user of an HRMS, all your employees will have to use it for time tracking, absence management and onboarding as well. 

Demonstrate the value of the platform by explaining how it can cut down on time-consuming admin tasks and improve the overall employee experience. Don’t forget to highlight self-service features that give employees control over their own data–while saving your HR team time. Once everyone in your organisation sees how the tool benefits them, getting buy-in becomes a whole lot easier.

You want an HRMS that not only makes life easier for your HR team but also keeps everything running smoothly for your employees. Here’s a quick rundown of what to look for in a solution:

1. Digital employee file: Let employees handle the basics and update their personal details themselves to save HR time and give employees a sense of control over their data. 

2. Time tracking and attendance: You want a tool that makes tracking hours, managing absences and creating schedules as painless as possible. Automation here means fewer mistakes and less time spent on manual tasks

3. Recruitment management: A solid recruitment tool should help you post jobs, manage applicants and communicate with candidates easily. This makes your hiring process quicker and less stressful.

4. Performance and development tracking: Look for features that let you set goals, give feedback and monitor progress to track employee performance and career growth and help your team thrive.

5. Analytics and reporting: If you want to constantly improve your organisation’s approach to HR, you need a system that gives you real-time insights and customisable reports on everything from employee engagement to turnover rates.

6. Mobile access: Being able to access your HR management tool on the go is a must, whether employees are clocking in when they get to work or managers are approving leave requests on the go. 

7. Payroll integrations and capabilities: Having payroll built into your HRM software (or easily integrated) means no more juggling spreadsheets and helps ensure accurate pay, tax calculations and deductions–all in one place.

Plus, here are some important integrations to consider when researching HRMS options:

• Applicant Tracking Systems (ATS)

• Benefits platforms 

• Candidate sourcing and assessment tools

• Collaboration and productivity platforms

• Learning and development software

• Workforce planning solutions

HR can sometimes feel like a maze of spreadsheets, paperwork and endless admin. But it doesn’t have to be that way.

Personio simplifies HR processes with an all-in-one platform that takes care of the heavy lifting. The solution automates time-consuming HR tasks and lets you build custom workflows–giving you back time in your day to focus on engaging and motivating your employees.

The platform is intuitive, integrates seamlessly with your existing tools and scales with your business as it grows. It’s a tool built to help HR teams work smarter, not harder.

Let us take care of tedious tasks so you can focus on what you do best

Personio lightens the administrative load on HR teams to give you more time for what really matters: building a better workplace. 

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