HCM Vendor Selection: 9 Ways to Maximize Value by Avoiding Pain

If you’re looking for new HCM solutions, then you may have outgrown your existing systems or you may see potential in new technology. Congratulations if you do indeed see such opportunities for improvement.

But you also might be replacing your current HCM technology because it never met your needs or performed as expected. If so, then you may have erred in buying the software in the first place.

Selecting the right vendor is crucial to maximizing your return on investment in HCM software. You could waste time, effort, and resources if you repeat previous vendor selection mistakes or make new ones.

Choose your organization’s next HR technology with confidence. Address pain points and align your HCM software with organizational objectives through an efficient vendor selection process.

 

1) Involve the Right People

The same people who chose the wrong HR technology the last time may not be the best to choose your new systems, even if they may have learned from their experience. Vendor-agnostic HCM consultants can engage all levels of your organization — from the front line to the executive suite — to identify current obstacles and your desired future state.

 

2) Determine Your Needs

If your current software doesn’t do enough, then perhaps you should have invested in a more advanced system the last time. Or maybe you bought more technology than you needed and want to get something that is more affordable and more closely aligned with your needs this time. 

Specify the problems you want to solve with your new HR technology so that you know what you want. Do you want to automate tasks? Simplify payroll? Improve employee self-service? 

Rank your needs by importance, from non-negotiable to nice-to-haves.

 

3) Avoid Mistakes

The HCM marketplace is increasingly complex. You probably will know what solutions are available or where to look for them if you don’t keep up with the market. 

Companies commonly make the following mistakes when choosing an HCM vendor.

  • Assuming a solution will work for you as it does for someone else.
  • Choosing a vendor that doesn’t provide support quickly or resolve problems completely. 
  • Ignoring hidden ownership costs.
  • Picking systems with poor security.

Vendor-selection specialists can help you avoid mistakes like these through precise, accurate and expert guidance. 

 

4) Align Your Processes

Users may struggle to use HR technology that drastically changes the way they work. You might have to double down on your change management efforts if you simultaneously change systems and processes. Be mindful of the challenges that users would face and how you could help them overcome them when selecting an HCM system

 

5) Communicate Your Needs

Vendors can’t help you if they don’t know what you need. Help them help you. Document and define your requirements clearly so vendors can understand objectives and bring you the right solutions. 

 

6) Identify Possible Solutions

Dozens of vendors could potentially help you, whether you are looking for an all-in-one HR suite  or pursuing a best-of-breed strategy. New products and companies constantly come to market. 

You may be able to save money by going with the lowest cost provider. But you could impair productivity if you buy a poor product with subpar support from an undependable company. HCM consultants can help you hone in on the most reputable and reliable companies by developing the appropriate vendor selection criteria. 

 

7) Score Proposals

Not all vendor responses are created equal. Some may fall short of your goals for a solution’s effectiveness or affordability, for example. Or the vendor may not offer the level of customer support that you want. 

Ranking responses with a software vendor selection scorecard helps you determine which solutions to consider. With assistance from vendor-selection experts, you can ensure that you understand actual system capabilities and how they match your needs. Consultants can also advise you on the vendor’s roadmaps for future development and their success rate at achieving past roadmap promises. They also can assist you in evaluating vendor demonstrations.

 

8) Do Due Diligence

Companies often choose the wrong vendor because they want to finish the process rather than dig deeper. Confirming that a solution will perform as promised is essential for avoiding a bad purchase. Experienced vendor selection consultants can help you do due diligence, like by checking references. 

 

9) Close the Deal

Overpaying could be the most painful part of choosing an HCM vendor. Unfortunately, many companies buy more than they need or get less than they expect. Consultants can shorten the time required to strike a fair and trustworthy agreement that includes appropriate terms like the right project scope, purchasing costs, and service-level agreement.

The right HR technology can transform your business, whether you are seeking a new solution or a replacement for an existing system. Choose correctly by addressing past pains and avoiding future problems when selecting your HCM vendor.

Providence Technology Solutions helps organizations improve the efficiency and effectiveness of their HR functions by aligning technology and processes with their business needs. Learn how we could help your organization improve your employee experience through our HCM Consulting services.

Contact us today to discuss your needs online, by email at info@theptsteam.com or by calling 904.719.8264.

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