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    Questions to Ask a SaaS Vendor for HR/Payroll

    Looking for an on-demand vendor for your workforce management solution? Here is what you need to know to get started.

    Finding a SaaS vendor for your HR management can be challenging. First, few software delivery standards/guidelines exist for this relatively new software delivery model. Secondly, workforce management requirements within a specific organization can be fairly complicated. Additionally, changing labor laws make compliance management more complex. Asking your prospective on-demand vendor questions is paramount to finding the right solution for your team.


    Based on clients' questions and our experience in the industry, here are some recommended topics to address in your research:

    " Compile a list of needs. You may want to start out by spending some time preparing a list of features you are looking for in an product. For example, this can be a specific timesheet format, support of external time collection devices, reporting, or any other functionality needed by your organization. Try to envision any future uses as your team needs evolve and be sure to discuss these with your prospective vendors.

    " Request a Demo to gain a better understanding of workflow and to determine if the solution matches your needs. If you need the software to interface with your existing payroll - now is a good time to ask. What is the specific package you will be getting?

    " Data Security And Compliance Crucial. With the concern of identity theft and compliance with new business laws, such as Sarbanes-Oxley, ensuring that personnel information is properly safeguarded and audited is critical. You should confirm that your data is stored securely with frequently performed back-ups. How long will your data be stored/accessible for?


    The hosting facilities should have various layers of security, not only regarding the network and data, but also physical access. While keeping your exit strategy in mind, if you decide to switch to another vendor, what happens with your data?

    " Confirm Reliable Service Levels And Availability. An important portion of your company (your workforce) will be relying on the applications' availability online. You want to ensure that your team will receive an acceptable level of uptime with redundant Internet connectivity options.

    " Understand Day-to-Day communications. What are everyday communications like? Will you get a dedicated personnel knowledgeable about your specific needs? What are the office hours? What is your vendor's availability in case of an emergency?

    " Ensure Consistent Software Maintenance. Will you get upgrades? What is contained in the upgrades? Are they disrupting? Will there be advance notifications of the upgrades? How often are they performed? Is there a charge for upgrades? Is there anything that your company would have to undertake to partake in the maintenance process? Can you make suggestions for customizations?


    By the same token, while it is great to work with a company conscious of staying on top of the latest trends, the software platform has to be mature enough not to require monthly retraining for your entire staff.

    " Set Realistic Expectations About the Setup process. What is required of you (and your team) to get set up? How long will the implementation take? Will there be training for your employees and what constitutes the training?

    " Consider the Cost Structure. What is it based on? Are there monthly minimums? How long is the commitment? Typically, these tend to be long term solutions, so you want to make sure of the terms you are committing to. If you spent the time preparing your employee data, gathering pay rules and such, and training, you might not want to have to start looking for a new solution. Realization of that may give your vendor almost a free reign to raise the renewal fee.

    These are just some of the questions to get started on your research. A consistent and thorough analysis will help you to find the solution that will help to make your company's workforce more effective.

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    comment 1 Comment
    • Shane Granger
      03-04-2011
      Shane Granger
      Rachel, a good list of questions (and given you wrote this in 2008 a good reading of where software development was going).

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