November 1, 2018 HCM Consulting Support, Optimization Support

Vendor Selection

For HR and payroll departments, the wrong HCM vendor can lead to a world of frustration. Generally, HR professionals become uncomfortable with their organization’s HCM technology due to bad implementation, poor vendor support and inadequacies or inefficiencies of the HCM technology.

Once you have these feelings towards your current HCM technology, you know it’s time to make a change. Before reviewing your options, it’s a good idea to understand the origins of your problem with the current HCM solution.

Some decision makers choose HCM vendors based on their past (positive) experience with their product. They may fail to consider the uniqueness of their current workplace and whether the HCM product would fit in with the mission, values and objectives of their current organization.

In other cases, the decision makers may have compared the pros and cons of two or three HCM solutions and made their choice based on these limited options. Since there are over a thousand HCM vendors in today’s marketplace, this is obviously not the best option.

However, there is a catch. Figuring out which of these 1000+ vendors is right for your organization is a huge challenge – one which will require industry expertise as well as weeks of research, interviews and testing.

HR and Payroll professionals are incredibly busy, having to manage employees, deadlines and a multitude of other tasks. They neither have the time nor expertise to choose an HCM solution that is an ideal fit for their business needs.

At this point, you are aware of three things:

* There is a problem with your current HCM system.

* You are willing to take steps to rectify the problem (choosing a new vendor/HCM solution).

* You neither have the time or expertise to do this.

Thankfully, there are far easier and efficient ways to choose a HCM vendor that is right for your organization. Let’s take a look at some of the steps you should take when looking for a new HCM vendor

Find a consultant

Evaluating the different HCM platforms out there requires extensive industry expertise and experience. Vendors offer a variety of solutions ranging from all-in-one HCM systems to best-of-breed.

To choose the right solution for your organization, you need the help of an HCM Vendor Selection consulting firm who understands your challenges and business goals, knows your specific needs and what you’re trying to achieve, and most importantly, has the requisite experience to evaluate different HCM solutions and support your organization in making the right choice.

The consulting firm you choose should maintain cordial working relationships with various HCM companies; however, the firm must be “vendor neutral.” If your consultant has a track record of using the same HCM vendor for multiple clients and projects, ensure they gave you a good reason for doing so.

Communicate your objectives

Once you’ve chosen the right consulting firm to guide and support you through the vendor selection process, you must clearly communicate your needs and objectives. Be upfront about your expectations of the HCM system.

This enables the consulting firm to tailor and streamline their selection process to enable you to get the best vendor for your organization.

Take inventory

In most cases, HR and payroll professionals want a total replacement of their current HCM system. They are usually unsatisfied with the technology and vendor support and want to work with a brand-new vendor.

However, they may not realize the dependencies on other systems. It’s best to keep an open mind since some of the features or modules of your current system may still meet your requirements. You should undertake an inventory of your HCM system and its dependencies and decide on systems (if any) that you should keep and those that should be replaced.

Visualize your end game

You should figure out why you are changing systems and what the ultimate goal of a new system is. The right HCM solution should help you streamline and effectively manage projects, empower your workforce, and ensure seamless and effortless collaboration with colleagues.

Work with the consulting firm to map out a selection, purchase and implementation strategy that takes you from your current situation to where you want to be. Remember that cost is important when changing vendors since it plays a role in determining if your new HCM solution is worth it.

Your consultant should work with the vendors to understand the TCO (Total Cost of Ownership). This should include both the up-front implementation costs and all recurring cost.


Selecting a new HCM vendor can be a daunting process. But it doesn’t have to be. Turn to a qualified consulting firm for help, be honest with what you need and issues with your current system and keep the end game in mind.

Having a quality HCM solution that fits your unique and complex organization will benefit everyone in the long run.

vendor selection: choosing the right HCM system for you

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