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How To Get Approval To Buy HR Software For Your Business

One of the biggest challenges for companies trying to implement HR software, is not finding the perfect system – it’s convincing the finance department to authorise their purchase! If you are the HR manager, or even the HR systems manager, you might still need approval from your company’s Finance Director before investing in an HR system. They might require you to submit a purchase order approval request.So how do you convince them to let you make the purchase?

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Here are some tips:


1.Explain what the purchase is for. It might sound obvious, but you should start by explaining what you want to purchase. Explain that you want to migrate your HR information from paper to digital – or from one provider to another – and if necessary, describe what HR software solutions actually do (your finance director might not know!).

2.Explain why you need it. Your finance director might not see the benefits in the same way you do, so it pays to spell these out. It helps if you can link the benefits tohow they might help your business turn a greater profit – for example, through better performance from staff (thanks to the HR software’s performance module).

3.Name the supplier. You will have probably chosen a supplier at this point. Make sure you tell your finance department who you’ve chosen, and why you chose them – what did they do that stood out beyond the competitors. For example: “We chose People HR because they were the only company offering both 360 degree performance reviews, as well as expert tips and reminders during crucial HR processes – this will better help us improve performance and avoid mistakes.”

4.Name the price. Your finance department needs to know how much the cost will be, and you need to tell them. In your pricing report, make sure you cover any upfront costs, any ongoing costs, and any potential costs that might arise in future, for example if your business grows and you need to increase your licence.

5.Provide a basic security report. If your chosen HR system runs in the cloud, make sure they are ICO registered (and provide the ICO reference number). If possible, also cover where they will host your data, how often they back up data, and whether or not they run regular penetration tests.

Extra tip


Remember that most finance departments – especially in larger organisations – will receive requests like this on a regular basis. If you really want to get your HR software purchase approved, it’s very important you make your case stand out. Highlight the benefits – and not the benefits to you personally, but rather, the benefits to your organisation as a whole!

Extra tip: You might want to show your finance department competitor pricing, so that they know you have considered different costs, and that you are aiming to secure the most cost-effective deal for your organisation. For example: Company A costs just £1 – cheaper than Company B, at £2 (both offer the same features). However, I chose Company A over Company C because Company A offers Feature X – which Company C doesn’t.

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