Are you paying too much for HR software support? You can save your company some money by following these tips reference. Guest Posting, a previous HRIS/HRMS reseller business of mine, was often contacted for consulting and support by clients we didn’t sell the system originally to. When I first met with these HRIS/HRMS users, one of my first checks was which products were being used and for which they were paying support. We were often able quickly to determine which products they used and paid support for.
Why are you paying for options you do not use?
In my experience, many of the software companies offering HRIS/HRMS charge a separate support fee for every product or option. So, in addition to a base HRIS/HRMS, you may have to pay a fee for the recruiting module, the training module and customization or import program. In some cases I have seen support fees vary based upon the number of employees actively using the software.
You can ask your vendor if they charge support for products and options. If so, you should double-check with them to find out exactly what product(s) or products (or both) you are paying support for. If you pay support for an item you no longer need, you should find out how you can stop receiving support. Do you know the process for reactivating a product? You want to be sure that the system won’t require a re-purchase.
What if you decide to drop your support?
You might be asked or asked already to reduce the budget. An annual support charge for a software product like HRIS/HRMS that you seldom use may seem like the right choice. The answer is that it depends. Annual support fees for payroll are not optional, but a necessity. These support fees usually include tax updates and important compliance updates. Do you need to pay if you’re using a standalone HR package and only use it occasionally? We can’t use the same arguments we used in payroll for HR packages. The number of compliance updates that are required to be performed with an HR system is not very high.
Please note: If you’re considering dropping the support of an individual option, or all options for an HRIS/HRMS software system, find out what process you will need to follow to renew it at a later time. I remember working with a vendor who charged for not only the current support fee but all past support as well. I have seen many companies be completely surprised when they find out the consequences of letting a contract for support expire. You should know the procedure before canceling your support.
What if it’s a hosted, subscription or on-demand service?
If you are using an hosted system or a subscription, the fees can be based off of your number of employees. If your staff has decreased, you can ask to have the fees reduced. A separate fee may be charged for each administrator. Check if it is possible to lower the fees as well if your product has fewer administrators.