What to Look for in Cloud HR Software for Your Small Business


Managing your team doesn’t need to be complicated. If you’re able to find a cloud HR software solution that works for your business, you should be able to address many of the needs of your team right from one centralized dashboard.

How to Select Cloud HR Software

However, there are tons of different cloud HR software products out there. And every business is likely to have different needs in this area. To find the best solution for your team, here are some expert tips to keep in mind.

Consider How Your Business Works

Brian Westfall, principal HR and talent management analyst for Capterra said in an email to Small Business Trends, “According to our research, functionality is the most important factor in HR software purchase decisions.”

A lot goes into determining if a software product functions in the way your business needs it to. But one of the most important things you can do is look at your own processes to determine what type of solution is most likely to fit into your existing workflows.

Account for Essential Features

From there, you need to start creating a list of features that are important for your business. However, Westfall says you should also prioritize these features, and separate wants from needs.

He says, “Every business, regardless of size, should adopt some kind of core HR system with basic features like personnel tracking, payroll management, time and attendance, and reporting. These features will dramatically ease the burden of HR administration, especially for small business owners who have a million other things on their mind besides their employees.”

Create a Growth Strategy

It’s also important to consider how your business might change through the years, since you don’t want to switch up your HR software every few months. This starts with creating a plan and outlining how that might impact your team.

Westfall says, “Businesses should consider not only the functionality they need now, but also the functionality they’ll need five years down the line. This ensures they choose software that is able to scale with their growth.”

Look for Strategic Features

More specifically, Westfall outlined some of the features that companies often need as they grow. So you should take these items into account if you think they might benefit your team now or in the near future.

He says, “As businesses grow, they should start considering strategic HR software features such as performance management, learning management, and employee engagement to aid in workforce development and retention.”

Set a Budget

Of course, you also need to make sure that any software you choose is affordable for your business. Don’t just think about what you can afford to spend, but also how it can impact your team in a positive way. If one product offers you features that can help you reduce turnover and improve productivity for a slightly higher price, it might be worth considering.

Learn the Process

You and your employees will need to use whatever software programs you choose regularly. So you need to be sure that they’re easy to understand. You don’t want to waste tons of time training employees to use these programs or deal with tons of errors because people don’t understand how the features work.

Attend Demos

One great option for learning about different tools, especially when it comes to processes and ease of use, is attending demos. See if the programs you’re considering offer any, or try to set one up by contacting them. This should give you a firsthand look at how it works, so you can determine if it’s doable for your team.

Consider Integrations

If you already use existing software programs for things like payroll, time tracking, or collaboration, it might help if those items also connect to your HR software. Find out if the products your considering have any integration capabilities, if you think that would benefit you now or in the future.

Read Reviews

Westfall says, “Ultimately, the best way to compare different HR software systems is to read insights from real users. They’re already there. They already know where their system excels, and where it can stand to improve.

“To that end, Capterra is the largest source of real business software reviews in the world. Companies should apply different filters to whittle down their options to those that best fit their size, functionality needs, and budget, then start reading reviews from businesses like theirs to help determine if that system would be a good fit or not.”

Ask Questions

Another great way to learn about the ins and outs of a product is to simply ask. If you’ve attended demos, read reviews and gone over feature lists and are still left wondering about something specific, reach out to the provider. This should help you get the information you need, while also providing you with a look at their customer support, should you ever need to contact them with questions as a customer.

Image: Depositphotos.com






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