Finding the right HR software solution

For companies that want to digitalize their HR processes and are looking for suitable HR software solutions, the HRNeeds portal compares HR software solutions and advises them on functions. This saves companies around four to six weeks in the research and decision-making process.

The world of work is becoming digital and work processes are increasingly automated. This development also affects HR departments. However, HR departments are often still working in the traditional way, which ties up resources unnecessarily.

The developers of the HR software comparison portal HRNeeds have therefore set themselves the task of comparing a wide range of HR software solutions and advising on their functions. So that you can find the HR software that is right for you.

Digitalize administrative personnel processes

Current studies show that the time resources of HR staff are still too often tied up in administrative tasks, even though these could have long been automated using HR software solutions. For example, a study conducted by the Niederrhein University of Applied Sciences and Aconso concluded that the transition to fully automated administrative HR processes has only been implemented in slightly less than half of the companies surveyed.

A survey commissioned by the software company Personio revealed that both HR managers (55%) and employees (46%) agree that their company has room for improvement in terms of process efficiency – excessive administrative effort and a lot of repetitive work are the main obstacles cited.

Freeing up resources due to a higher degree of digitalization

Conversely, a higher degree of digitalization can noticeably reduce HR administration costs through more effective processes and thus free up resources to focus on the employee experience, according to the presentation of the results of the Personio study.

A study initiated by HR Today and the University of Applied Sciences Northwestern Switzerland came to a similar conclusion. According to this study, the digitalization of HR processes can lead to quality improvements and cost savings. Provided that the HR software solution meets the requirements and has the necessary interfaces to IT systems already in use. Another result of the study is that a targeted approach is necessary, as all too often, unsophisticated solutions are implemented that lead to additional work instead of the desired added value.

Realignment of the HR department

If, on the other hand, the HR software fits the company’s requirements, this not only leads to greater efficiency and higher employee satisfaction, but also to a realignment of the HR department. With the help of digital relief, the HR department can fulfill its strategic role, which in times of a shortage of skilled workers primarily consists of finding, hiring, developing and retaining qualified personnel.

These are all time-consuming tasks. And they are by no means the only challenges facing HR managers. This is because HR managers also have to support and organize the change processes in the other specialist departments of the company. There, too, employees need to be accompanied competently and sensitively on their journey into the digital world.

Identify the right HR software for precise matching

But how can you find the right HR software for your own company and achieve the greatest benefits, given that the HR software market is highly fragmented and oversized?

You could do your own internet research. Or contacting and exchanging experiences with other colleagues from other departments or companies?

However, while Internet research is very time-consuming and it is difficult or impossible to find out the details of individual software solutions on the providers’ product pages, exchanging information with internal or external colleagues is not necessarily helpful either. This is mainly due to very specific detailed questions that every company has to ask itself in the run-up to the digitalization of HR.

When selecting an applicant management solution, every company should find answers to the following questions, for example:

  • Are we looking for an overall digital HR solution or a stand-alone solution?
  • Are we looking for an on-premises solution or should the data be stored in the cloud?
  • Should the applicant management solution be linked to our own career website or job board?
  • Does the digital solution include a multiposting function?
  • What about authorization concepts and who should have access to the system?
  • What data should a digital applicant management system be able to collect?
  • Do the relevant solutions take sufficient account of data protection?
  • How are the workflows structured in the digital solutions?
  • Is there a need for a target/actual comparison of incoming applications with requirement profiles?
  • Is it worth using a CV parser?
  • And in the event of recruitment: can the data from applicant management be easily transferred and linked to an onboarding tool, the digital personnel file and payroll?

But how should you proceed with all these imponderables that are difficult to recognize and the flood of questions?

The HRNeeds comparison portal provides transparency here.

The HR experts at HRNeeds have examined and analyzed over 70 HR software solutions in terms of their functions and requirements. They examined both complete software providers and specialist providers who have specialized in certain modules.

Complete system "all-in-one solution" or best of breed?

The full-service providers cover all HR areas of personnel departments with their software portfolio. For example, they offer digital solutions for personnel management, applicant management, recruiting and onboarding, time management and payroll accounting. Or personnel development, including digital modules for the organization of employee appraisals, training management and e-learning, further training or talent management and management development.

There are also specialist providers who focus on individual modules with their digital solutions. These include, for example, software for recruiting, training management, digital signatures or software-supported driving license checks.

If your company is already using individual software solutions, you are probably only looking for new modules for additional HR processes that can be docked onto existing software systems via suitable interfaces. This is where the best-of-breed approach may come into play.

But regardless of your requirements and prerequisites: The comparison portal HRNeeds lists both variants in its comparison, both solutions for complete systems and best-of-breed offerings.

The diversity in the comparison at HRNeeds not only refers to the wide range of software solutions, it is also reflected in the focus on different target groups: HRNeeds compares solutions for small, medium-sized and large companies.

Preliminary considerations for the selection of HR software

In principle, companies should answer a few questions in advance of the search:
  1. Functions: Consider what functions you need, for example time recording, vacation and sick leave management, employee files, performance appraisals, etc.
  2. Integratability: Should the software be integrated into existing systems, for example interfaces to your financial software or CRM system? Or to other HR software modules
  3. Where should the data be stored

Reach your goal quickly, easily and free of charge with the HRNeeds comparison portal

HRNeeds has developed a specially designed and clearly structured process to determine your requirements. As each company’s requirements are very individual, the HRNeeds comparison portal uses a well thought-out list of questions that covers and queries all key aspects in a first step.

This process can be compared to a road that passes numerous crossroads. Depending on which direction you choose at each fork in the road, new options arise.

Example: The search for payroll software

A good example of this path, with all its crossroads and the subtleties behind each decision, is the search for payroll software. The HRNeeds questionnaire asks whether you are interested in “payroll full outsourcing (BPO)”, “payroll partial outsourcing” or “payroll in-house”. In the second step, you can choose between providers of cloud solutions or on-premises solutions.

Although this clarifies the basic questions, it does not cover all the finer details. In a consultation with the experts from HRNeeds following the questionnaire (see also the following section “The transfer of the right software solution”), it will now be clarified together whether you want an open or closed system, for example. If you choose a closed system, you will be dependent on the provider of the selected payroll accounting system when searching for other HR solutions in the future, as “third-party solutions” cannot be connected to the selected software, or only with great difficulty. If you choose an open system instead, the best-of-breed approach, you will be freer to choose other software modules in the future.

Such “stumbling blocks” are not recognizable in most product presentations. Or you are not even aware of having to deal with such issues – despite the far-reaching consequences for the future and the further digitalization of your HR department.

HRNeeds clarifies these questions with you!

The transfer of suitable software solutions

The company-specific requirements are therefore compared with the software solutions of the software manufacturers using the questionnaire and the results obtained by HRNeeds. From this, an initial list of providers, the so-called longlist, is drawn up.

This is followed by the brief telephone consultation mentioned above. During this, the HR experts from HRNeeds and the customer ensure that the customer’s requirements and wishes are discussed and any outstanding issues are clarified.

The customer then receives a free and non-binding shortlist of the identified software solutions with a detailed summary and all the necessary information to help the customer make a decision and support them in their choice. This also includes presentations by the providers, user cases and proof that the customer’s ideas and requirements can be realized in practice.

This overall process developed by HRNeeds enables companies to go into the presentations with the individual software providers with sound background knowledge and ultimately make a decision for one or more HR software solutions based on data and facts. At all times, the basis remains the requirements catalog created at the beginning of the process, i.e. the detailed functional description that defines what the software solution must be able to do and what it must be able to achieve.

Factors user-friendliness, price, customer support and data protection

When reviewing the submitted software providers and the associated negotiations, you should also pay attention to four other things in addition to the requirements you have specified:


Make sure that the software is easy to use and that your employees can learn and use it quickly - make sure that they get on well with the user guidance and that they like the design.


Compare prices from different providers to ensure you get the best value for money.

Customer support

Make sure that the provider offers good customer support if you have any questions or problems.

Data privacy

Make sure that the software complies with all applicable data protection laws and that your employee data is stored securely. This also raises the question of where the software provider's data centers are located and in which country the data is stored.

The HRNeeds comparison portal, your partner in the search for HR software

Choosing the right HR software is a complex process that requires a lot of background knowledge about how HR software works and how software companies work. HRNeeds has built up this knowledge and supports you in your search for solutions tailored to your company. Take advantage of this know-how and the experience of HRNeeds consultants and find the HR software that meets your requirements – quickly, easily, soundly and free of charge.
  • Personnel accounting (payroll)
  • Applicant management / recruiting
  • Personnel management, including digital personnel files, employee appraisals, personnel development, including succession planning, talent management, skills and competence management
  • Training management & eLearning
  • Personnel time management
  • Personnel resource planning
  • Document management software (DMS)
  • Digital travel expense accounting
  • Software-supported driver’s license control

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Find the ideal software with the HR software comparison from HRNeeds: HRNeeds uses a special analysis tool to compare the company-specific requirements with the software solutions and thus reliably finds the perfect software fit.

Do you have any questions about the software solutions?

We will be happy to advise you, free of charge and without obligation! Our expertise will effectively save you time in your search for the right tools for your HR processes. Our competent HR consultants are in constant contact with HR software manufacturers and are therefore always informed about current trends and innovations.