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HRIS procurement starts before the first vendor demo

By Ian Peake

Many HRIS projects are shaped before the first vendor is invited to demonstrate. Once a selection process begins, the conversation can quickly move to features, roadmaps, implementation options and price. Those topics matter, but they cannot compensate for an organisation that has not agreed what it is trying to solve.

Before going to market, answer five questions:

  • What business problem is driving the change?
  • What should be measurably better three years after go-live?
  • Which capabilities are essential, and which are preferences?
  • Which processes are the organisation willing to change?
  • Who makes the selection decision, and who owns the outcome?

These questions turn a broad search into a decision process. They also expose disagreement early. If leaders have different views about whether the priority is workforce visibility, payroll reliability, manager self-service or a better employee experience, that should be resolved before vendor demonstrations begin.

Translate needs into evidence

Requirements should describe work the system must support, not simply repeat the language of product brochures. For each important requirement, define a real task, user, data context and expected result. Include exceptions as well as the happy path.

In Australia, apparently straightforward HR processes may involve awards, enterprise agreements, multiple worker types, rostering, learning, compliance obligations and dispersed teams. The requirements should show where that complexity matters to your organisation.

Then agree the evaluation principles. For example, how will the team weigh functional fit against implementation risk, usability, integration effort and total cost? A scorecard is useful only when evaluators know what evidence earns a score.

Keep the process yours

A vendor’s demonstration should test your priorities. It should not become the process through which you discover them. Ask each vendor to respond to the same scenarios, record what was shown, and distinguish standard capability from configuration, customisation or a future roadmap item.

A well-prepared process can be shorter and more useful because it reduces rework and late surprises. The goal is not to write a perfect specification. It is to give decision-makers a shared basis for comparing options.

If your organisation is considering an HRIS change, start with the decisions you need to make internally. The quality of the market response will depend on the clarity of the question you ask.

Facing a decision like this? Talk to Ian Peake.