When to Change Your HRMS Vendor

Most companies have HRMS tools which they purchased and implemented several years ago. In case you are one such company, then you are probably aware of the speed at which technology is otherwise progressing.  While the HRMS currently in the organization might seem like it performs the tasks it was meant for, it is still outdated.

Reasons To Get a Need A New HRMS System

There are several reasons that will initiate the need to get a new HRMS vendor. Some of them are discussed below.

  1. Difficulty in using the HRMS System: People commonly think that the HRMS is meant to be complex and difficult to use. However, providers are constantly working towards the development of an easy to use the software. In case the employees of your organization feel this way, you should understand that it is because it is outdated. The User Interface is also developed poorly. The HRMS vendor would obviously not be willing to admit that the software is flawed.  Rather, he would have you believe that you are not able to master the system. In case the vendor starts faulting your usage of the system rather than fixing the problem, it is indeed time to find a new vendor.
  2. The System Still Prints on Paper: Several HRMS systems requires forms to be printed and filled and signed. The HRMS fundamentally needs to be paperless. In case the vendor believes that using paper is common and needed for security and other reasons, then it is time to change the HRMS Vendor. The entire world is moving towards becoming a paperless society and the HRMS only helps in the achievement of this goal. Not only is it environment-friendly, it also removes clutter. The work environment becomes visibly efficient once clutter and paper are eliminated by moving into a  paperless environment.
  3. There is Quite a lot of Secretarial Work: In the older systems, there is a need to maintain excellent documentation and secretarial work. Requests for leave and change of address needs to be manually approved.  In case the system does not have an approval system and an employee self-service module, these menial tasks take up a lot of your time. An HR is supposed to be involved in higher decision-making tasks and in managerial tasks and work on improving the system. They should not be confined to mundane tasks. If the current system does not help in achieving this, it might be time to look for a new vendor.
  4. The interface Looks Like An Old Video Game: Older HRMS systems were designed and built to look a lot like a video game to keep up with the video game trend that was famous back then. Some of the video games that were imitated were Tetris and Mario. In case you feel that the HRMS reminds you of a vintage video game, then you might want to look for a new HRMS vendor. And when you look for a new system, make sure that it is modern and technology updated.
  5. Technical Support: Technical support is the most important aspect of an HRMS software. There needs to be continuous support. The support can also be in the form of software updates as well. The system is often difficult to use and complex. If you are not receiving proper customer support, then it is time to find a new vendor as this would mean the system is not used to its maximum potential.  Provision of prompt support is an important criterion that is considered when the HRMS vendor is chosen.

There are two aspects to this process- leaving the current vendor and finding a new vendor. Before you can leave your old HRMS Vendor, there are a few facts you should get straight.

  1. The Contract: In case you are shifting from your current HRMS to a new one as the contract is expiring, there could really be no one as lucky as you. However, the timing is hardly ever that perfect.  Leaving a contract before it expires could be expensive. It may involve breaking the contract and paying the fees till the contract ends.  In addition to this, periods of HR activity, such as open enrollment or end of the year, could cause disruption in the organization.
  2. Accessing Data: Commonly, HR data is considered invaluable. It consists of the ample resources that the system contains. It can also give several benefits to the organization if mine.  When you move to a new HRMS system, you probably want the historical data to come along with you. If the data is not available readily and the solution is hosted, it could be expensive to migrate the data to a new HRMS system.
  3. Managing Change: Moving from one HRMS to another is not easy as there is a lot of work to be done by the HR department, who have to do everything from the creation of new training documents to updating the workflows. There are also several processes to be changed based on the HRMS functionality.
  4. Support: Support can hardly be found once the organization decides to part ways with the vendors. Often, this also puts the organization on the back foot as providing support to a client who is leaving is not a priority for the vendor. This means that the Support Level Agreement (SLA) should ensure that the staff is aware of it and the vendor can be held accountable during the meeting with the client regarding the requirements of the contract.

Keeping these factors in mind, make sure the decision to HRMS is taken at an optimal time keeping in mind all the consequences that the organization might have to bear. When you decide to change the HRMS Vendor, first of all, inform the vendor. Talk to him to see if any alternatives are available. In case there is no amicable solution, talk to other HRMS Consultants. Once you find an HRMS vendor who fits your requirements, change the vendor and work on increasing the productivity with the new system.