It is a challenge for human resource departments to find a software that can not only document the data, but also produce reports that are needed for supporting the business requirements of a company. Considerable evaluation is needed on behalf of the business when they have to find software that’s not only within the required budget, but also accomplishes the goal of the department and complies with the regulations. The HR software should be evaluated by a team. The team needs to consider the needs of the business and to find a software that meets those needs in the best possible way. If the company is very large with complex needs, it may be better to hire an expert consultant to do this review. Some steps that should be taken for the evaluation of human resource software are listed here: 1- Firstly, a list should be made of the functions that an HR software should perform. For instance, a business needs to decide if they need the software for benefits management, payroll management, recruiting and applicant database, reporting or tracking employee information amongst others. Each software package will have to be evaluated individually to judge if it’s suitable for the business or not. 2- It is best to use an HR software for a trial period. There are a number of software companies that provide their clients with a demo disc or allow them to download it for taking a test run and having a look at its functionality, feel and look. The trial can be used by a business for running reports and entering data and checking all the other capabilities in the demo. Let the HR department test the software and give their feedback. 3- The price of different human resource system should be compared. A business will have a budget and cost will have a major impact on their choice. The lengths of contracts that need to be signed, the licensing costs and also the cost of providing training to the HR personnel should be taken into account. 4- The information technology department of the company should be consulted to ensure that the business has the required server space for the software under consideration. Depending on the size of the software and the number of employees, a large space may be required. Therefore, the IT department should do a proper evaluation to ensure that the software will not slow down the network or cause other problems. 5- Have a discussion with the human resource department and ask them to recommend different HR software. Make a list of the software and read their reviews that are easily available on the web. 6- A consultant can also be hired by a business for help in evaluating the best human resource software that cannot just fulfill the needs of the business, but also be available in the required budget. These consultants have in-depth knowledge and experience regarding the different software available in the market and will be able to provide proper guidance and advice.