Prioritizing Your HR Software to Get The Most Out of Your Business

HR Software

Every operating expense can seem like a non-negotiable expense to a small business owner. However, not all expenses in a business are equal.

Consider employees who travel at company expense. It can be very costly for small businesses, as they may not have the funds to travel. SMBs have the option of using different video conferencing tools that allow them to connect across countries without affecting their financial budget.

Similar to the above, other expenses can also be prioritized so that firms are only spending on necessary overheads and creating cash reserves for the future. The hierarchy of small business costs is managed parallel to Maslow’s hierarchy.

Here are some quick examples of the positive impacts of prioritization

It is important to hire for all positions if you manage an airline. If you don’t prioritize fast hiring pilots when there is a vacancy, your planes could sit idle and you will lose millions. Prioritizing and focusing your efforts on the most important positions will have a greater impact on retention. If you were the manager of the NFL champion Giants, you would want to retain all your team members who contributed to their victory. However, it would be smarter to concentrate your retention efforts on your star quarterback and not your best Gatorade guy.

From where do your business requirements originate?

Stakeholders are the ones who decide what requirements to be included. Talking to various user groups is an important part of the HRMS Software selection process. Your business strategy is another important driver. Are you looking to expand, diversify or consolidate your business? Your business strategy (are you looking to expand, diversify, consolidate, acquire, etc.) and your current KPI performance (the What are we doing and how can we improve it? question), as well as the status of your HR policies and procedures. If certain aspects of your HR service are failing or attracting complaints, these may be higher up on the priority list. It’s not surprising that companies spend on average 20 weeks choosing the right system for them, considering all of the features and functions available.

Benefits of prioritization in Talent Management & HR

You can help your company achieve its major strategic goal of increasing corporate revenues by prioritizing the recruitment in revenue-generating positions that can’t generate revenue when they are vacant. These revenue-generating jobs could be filled faster which would result in a significant increase in corporate revenue. You could also see an increase in revenue if you hire better-qualified and more productive salespeople. You might also be able to stop your sales manager from leaving your company by prioritizing your retention efforts.

It is possible to increase productivity, innovation, and profits by prioritizing individuals and jobs. You will get a higher return if you respond faster to high-impact individuals and jobs than if you distribute your resources evenly.

Two major fast-food chains decided to prioritize store manager jobs after discovering that top-performing managers, but not other positions, resulted in a 30% increase in sales when they were assigned to a particular store. One national chain of retail stores found that the loss of a store manager resulted in a loss in sales of one million dollars. No similar sales drop occurred when another position was vacant. It is no surprise that retail operations place a lot of emphasis on hiring and retention as well as development for store managers.

Prioritizing your HRMS

Gathering your requirements can be done in the form of an RFP. You then invite vendors to pitch in a predetermined format. This will lead to a final decision about your new HRMS. Prioritization is key to success when systems have different strengths. These are some methods, though, to begin with, they can be combined, to prioritize your HRMS needs.

  • By category – The categories you choose should be appropriate for your business. However, a general set of categories, to begin with, is: System, Support Vendor, References
  • What your HRMS should do for you is System
    • Support- Provision of updates, patches, upgrades, helpdesk support, consultancy, etc.
    • Vendor – The vendor’s experience and stability.
    • Refer to past customers’ feedback (preferably from a business of similar size and industry).
  • By rank – This is a simple pop chart approach that ranks your most important needs 1, 2, and 3. Others may not be able to reach the Top 40.
  • You can categorize each requirement as Must, Should, or Could. To add more planning, you might consider adding a fourth category: Would (not feasible right now but keep in mind for the future).
  • Ask stakeholders – In your selection consultation with stakeholders and users, ask them for their input on the initial prioritization. After you have created a rough list of requirements, it is time to ask for input from different stakeholder groups. To avoid any potential for a single enthusiastic vote, ask stakeholders to assign 100 points to a list of 10 features.

The criteria are weighed

To compare systems, you can create a simple weighting system once you have identified the most critical requirements. To begin, create a simple points system that your selection team can use to assess whether each purchase will meet each requirement. Take this example:

0 = Does not meet requirements

1 = Partially meets requirements

2 = Fully meets requirements

3 = Exceeds requirements

You can then allocate double or triple points to any requirements that are especially valuable for your business. The process will be fair as long as you use the same framework for each system shortlisted. This will almost always result in a clear decision.

If you have a tie between two HRMSs that are identical, consider other factors to help you make a purchase decision. These include the implementation timescale, system scalability, pricing model, and total cost of ownership.

Last Thoughts

Many HRMS staff initially oppose prioritization as they believe it is against their values. Remember that businesses routinely prioritize when resources are scarce or when it leads to superior business results.

To ensure profitability, it is crucial to managing your expenses. To ensure your small business’ profitability, you must keep an eye on all expenses to avoid overspending.