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How to Develop HR Software? Reasons, Process, Cost in 2021

HR software solutions were never as important as they are now. The pandemic has shifted the work culture worldwide, and people have different expectations from their employers.

The communication between HR departments in companies and their employees has been halted. There are issues in every aspect of HR that need to be fixed.

These problems are opportunities for entrepreneurs like you!

Just look at the case study of Zoom, the cloud meetings app. It went from an unknown app to become one of the most used apps in the world! – obviously after TikTok!

Their success shows how disruptive and important HR apps can be. In this guide, we will educate you on how to develop an HR app? We will also discuss the reasons and process of developing HR software.

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3 Reasons to Build HR Software

Here are the top 3 reasons to build HR software in 2021.

1. Switch to Remote Work Model Cause of the Pandemic

The pandemic has revolutionized the way people work. HR startups have seen massive growth and acceptance due to the shift to remote work. Let us tell you how:

As the campaign of the great resignation took off, companies became worried about retaining their employees.

This led to more tools being created that fostered employee engagement.

The CEO of Able Jobs revealed that before the pandemic, 15% of their interviews with their customers were online, but now it has jumped to more than 75%.

One of the big 4 accountancy and consultancy firms, PwC, conducted an HR technology survey in 2020. And, according to that survey, $148 billion have been invested in HR solutions. This number alone proves the significance of HR solutions and the impact of COVID on them.

Unleash has more to say about Global HR technology. According to the report, at the end of 2020, there was 100 billion dollars worth of HR technology investments, globally – that’s one of the highest levels since 2017.

2. Market Growth

The market for HR software was already witnessing tremendous growth before the pandemic. The HR software is not only used for remote work.

It is used for the management of compensation and payroll, benefits and claims management, personnel management, learning management, pension management, compliance management, and succession planning.

Since most of the HR software is based on the real-time analysis of data, the breakthroughs in the field of Data Science have also impacted the growth of HR software.

3. It Will Improve the Employee Experience

Since your employees are witnessing rapid advancements in consumer technologies, i.e. smartphones, smartwatches and everything – their expectations towards the processes you adopt will eventually change.

In this digital age, the employee doesn’t want to submit a form and submit it to the HR department to book a holiday. They want to do it digitally, just like booking an Uber.

The biggest reason employees hate the HR department is because of these outdated and old-age processes. This has serious implications if you look at it that way. It can decrease the overall productivity of your company. You can change it by using technology.

A growing number of businesses are moving away from paper forms to electronic forms. In the age where digital signatures, business insurances, and paperless approvals are the new norm, your business should follow suit.

If you develop and provide your employees with user-friendly and well-designed HR software, you can improve their work experience to a greater extent.

And, if you want to have happy and loyal employees, you need to improve their experience and meet their expectations.

How to Develop an HR Application? [Checklist]

Since we have established the reasons why you should develop HR software for your company, let’s move ahead to discuss the process.

Step 1. Create and Validate the Idea

The first step in the process is to come up with an idea. But, having an idea is not enough!

You need to create the idea for your app and be able to validate it.

Finding great ideas is not easy. You have to do a lot of brainstorming, a ton of research and you need to possess a lot of industry knowledge that would help you come up with an idea.

Generally, HR software falls into general categories. Among other options, the following categories can give you an idea of what type of HR apps are in demand:

  • Recruiting-focused
  • Onboarding-focused
  • Performance-focused
  • Talent-focused
  • Training-focused
  • Administrative-focused
  • Workforce management-focused
  • Employee management-focused
  • Benefits administration-focused

Once you have an idea for an app, the next step is to validate it. But the question is, how to validate your idea?

This step requires a bit of interaction with the end-users and industry experts. Talk to employees of different companies, learn about their HR processes, ask them about the problems that your app can solve, and propose your solution/idea to them.

For example, you might find out from the end-users that your HR software needs a chatbot, similar to the one Columbia Gas of Virginia has on its job listing page. A chatbot will answer the questions your users might have and take a significant chunk of work off your customer service’s shoulders.

If you receive a good response, you’re good to go.

Remember, while asking people, you need to consider their background as well. Try to reach out to a diverse set of people who can be honest with you.

Relying on a single friend of yours may not be a good idea. Also, if you keep investigating your app from a person who has never had a job, you will probably not get the real insight you need to build your HR software.

Step 2. Create Documentation and UX Design

Since you are developing software for a business-oriented audience, you should create a detailed document that will contain your technical and business requirements.

After which, your focus should be on UX design. UX design makes or breaks an app. It is one of the most decisive factors in the success of any app.

Even though you can create the documentation and initial UX design of your app yourself, taking expert help will be a more sensible decision to make.

Step 3. Find Developers or Start Coding Yourself

The third stage in the process is to find developers or code the project yourself. At this point, you must have a clear idea of your solution/app.

All you need right now is a good developer or a development team that can bring your vision to life. If you are a developer yourself and are confident enough to create the app on your own, then it’s time to code!

Although, it is recommended that you should take someone with you as a technical partner. Because, even if being a solopreneur is a good idea, you cannot do everything on your own.

And, what’s wrong with getting your app developed by industry experts who have years of experience in the market you want to target?

You can hire developers and get your work done. But, that’s going to be costly and time-consuming. Going with a development agency will be a better idea.

Step 4. Develop an MVP and Launch It

Now that you’ve taken the decision regarding the development of your app, it’s time to take it to the market.

At this stage, it doesn’t matter if you have got it developed from an industry veteran, or coded it yourself – you must get your MVP out there in the market.

MVP stands for Minimum Viable Product. It is your app in its most essential form. MVPs are used to test your hypothesis about your product/app.

The app doesn’t need to in its final version, but it is expected to perform the core functions of what it is designed for.

The actual and final app will be a scaled-up version of the Minimum Viable Product.

Step 5. Collect Feedback From the Target Audience

The last stage in developing an HR app is collecting feedback from your target audience.

Since you’ve launched your MVP in the market, you must now focus on getting feedback from the initial users.

The people who used your MVP will give you their opinion about your business idea and app. This will help you make changes to your software and business model if needed.

This is a crucial stage as this will help you have a direct look at the user’s behavior about your product.

Probably, this will be your last chance to modify your app before it becomes a failure. Therefore, it is recommended to carefully collect feedback from your target audience.

Try to improve on the areas you face complaints or issues. This will safeguard you from having future issues.

To Sum Up

The importance of HR software can not be undermined. And, if you go into this space and you solve a real problem, the success of your app is guaranteed.

But, you should keep in mind that it is as easy as it sounds. Human capital management system design and development require time, effort, and money.

When you’re working on an HR-based technology startup, you’re working to create a fusion of technology, humans, and business processes.

You have to take care of both sides of your software – technical and business. You also have to make your software user-friendly on top of that.

And, after all of this struggle, if you fail to market it to the right audience, you’ll end up becoming a failure.

Therefore, to successfully develop HR software, it is recommended that you seek guidance and help from industry experts.


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