There are many different types of HR software solutions on the market and it can be difficult to pick the right one for your company. If you are running a small or mid-sized business, it can be very tempting to go with the simplest solution available. Small to mid-sized businesses generally don’t need all of the extra bells and whistles that come with a more complex solution, so this option may work well in some cases.
The following are a few advantages and disadvantages of opting for a simple HR software solution.
Low Cost
Solutions with few features and a basic setup are generally lower in cost than more complex and flashy systems. In some cases, large HRIS vendors may even offer smaller businesses a simplified version of their solution for free or at an extremely low cost, with the intention of having the company move into one of their regular solutions after growth and expansion occurs. This lower price point can help small companies to transition to an automated HR system that may not be obtainable otherwise.
Ease of Transition
Simpler HR systems are usually easier for companies to implement. There are fewer features, so there is usually less to train employees on and less overall information transferring and technical work to perform. A simpler system may mean less down time, fewer hours spent on the implementation process, and better adoption rates.
Intuitiveness of System
Basic systems are usually simple to use and acclimate to, since there are only a few options to click on and use. Since systems are so simple for employees to adapt to, there is often less resistance. Change management becomes a much simpler task when employees can easily figure out how to use the system autonomously.
Limited Growth Support
Simple HR software solutions usually offer limited support for growing companies. This may make it necessary to transfer all information to a whole new system after expanding the company or hiring too many new employees. If the company is looking to expand, it is sensible to look into options that provide support for growth and can have features added to the package with few headaches.
Limited Functionality
Simple systems obviously come with just a few basic functions. While this has its advantages, it can make it necessary to find workarounds for certain processes that are not supported by the system. Having some functions manual, some functions supported on the HRIS, and other functions processed using spreadsheets and disparate systems can cause confusion and errors for some companies.
Difficulty with Integration
Simple HRIS solutions are often unable to connect to other systems that may be used by the company. A lack of integration can hinder HR processes, making them inefficient and reducing the effectiveness of the system. Wasted labor hours and errors can lead to a poor ROI for the HRIS.
It is important to understand exactly what you are getting before selecting any HR software solution, whether it is simple or complex. There are advantages and disadvantages to all types of solutions. It is important to consider future growth and needs as well as current needs to make sure that your solution will continue to work for your company as you move into the future.
