Understanding Your HRIS Needs
Selecting a Human Resource Information System (HRIS) is one of the most important technology decisions your organization will make. The right system streamlines HR operations, improves employee experience, and provides valuable insights. However, with dozens of vendors offering similar-sounding solutions, the selection process can feel overwhelming.
Define Your Requirements First
Core Functionality Assessment
Start by identifying which HR processes you want to digitize:
- Core HR: Employee records, org charts, document management
- Recruitment: Applicant tracking, interview scheduling, offer management
- Onboarding/Offboarding: Workflows, task management, equipment tracking
- Time & Attendance: Time tracking, PTO management, shift scheduling
- Performance Management: Goals, reviews, feedback, 1-on-1s
- Learning & Development: Training courses, skill tracking, certifications
- Compensation: Salary reviews, bonuses, equity management
Company-Specific Factors
- Company size: Employee count influences pricing and feature needs
- Growth trajectory: Rapid scaling requires different capabilities
- Industry specifics: Compliance requirements vary by sector
- Geographic footprint: Multi-country operations need localization
- Existing tech stack: Integration capabilities matter
Key Evaluation Criteria
1. User Experience
The best HRIS is one people actually use. Evaluate:
- Interface intuitiveness for both HR admins and employees
- Mobile app quality and feature parity
- Self-service capabilities that reduce HR tickets
- Search functionality and navigation logic
2. Integration Capabilities
Your HRIS shouldn't be an island. Check for:
- Native integrations: Pre-built connections with popular tools
- API availability: RESTful APIs for custom integrations
- Webhooks: Real-time data sync capabilities
- SSO support: SAML, SCIM for identity management
- Common integrations: Payroll, ATS, Slack, Microsoft Teams, etc.
3. Data Model Flexibility
Every company is unique. Ensure the system allows:
- Custom fields and data types
- Configurable workflows and approval chains
- Multiple employment types (FTE, contractor, intern, etc.)
- Complex org structures (matrix, multi-entity, etc.)
4. Reporting & Analytics
Data is only valuable if you can extract insights:
- Pre-built reports for common HR metrics
- Custom report builder with filtering and grouping
- Dashboard creation for different stakeholder needs
- Data export capabilities (CSV, Excel, API)
- Scheduled report delivery
5. Vendor Stability & Support
- Company funding and financial health
- Product roadmap transparency
- Customer support quality (response times, channels, escalation)
- Implementation services and timeline
- Customer community and knowledge base
The Evaluation Process
Step 1: Create a Shortlist (3-5 vendors)
Research vendors based on:
- Analyst reports (Gartner, Forrester)
- Peer recommendations
- Online reviews (G2, Capterra)
- Company size fit
Step 2: Demo Meetings
Request live demos, not canned presentations. Bring real scenarios:
- Show us how an employee requests PTO
- Walk through creating a custom workflow
- Demonstrate reporting on headcount by department
- Show the mobile experience
Step 3: Reference Checks
Speak with 2-3 current customers similar to your company. Ask:
- What was the implementation experience like?
- How responsive is customer support?
- Any unexpected costs or limitations?
- Would you choose this vendor again?
Step 4: Proof of Concept (if applicable)
For critical use cases, request a trial period to test:
- Integration with your payroll system
- Data migration from your current system
- Custom workflow creation
- User adoption with a pilot group
Pricing Considerations
HRIS pricing typically follows these models:
- Per employee per month (PEPM): Most common, scales with headcount
- Tiered pricing: Different price points based on feature access
- Module-based: Pay for what you use
- Implementation fees: One-time cost for setup and data migration
Don't forget to budget for:
- Annual price increases (typically 3-5%)
- Additional user licenses beyond your initial estimate
- Custom development or integration work
- Training and change management
Red Flags to Watch For
- Lack of product roadmap transparency
- Poor reviews about customer support
- Pressure tactics or aggressive sales processes
- Limited integration ecosystem
- Unclear data ownership and export policies
- Long-term contracts without flexibility
Making the Final Decision
Create a weighted scorecard based on your priorities. Involve stakeholders from:
- HR team (primary users)
- IT (integration and security)
- Finance (cost and ROI)
- Employees (end-user experience)
- Leadership (strategic alignment)
Remember: there's no perfect HRIS. Choose the system that best fits your unique needs, culture, and budget. Prioritize user experience and integration capabilities—these factors will determine adoption success more than any feature checklist.