How to Choose Between Out-of-the-Box and Configurable HR Software

As organizations grow, HR teams often look for ways to automate repetitive work and improve the processes and technology they rely on every day.

When choosing HR software, one consideration is how much flexibility you need. HR platforms range from largely preconfigured solutions to highly configurable ones, and many combine elements of both.

The right level of configuration can affect your budget, implementation timeline, workflows, and ability to scale as your organization grows. Before choosing a platform, it’s important to understand how much flexibility your organization actually needs.

Here’s what to know about the differences between out-of-the-box and configurable HR software and how to choose the right approach for your organization.

What is out-of-the-box HR software?

Out-of-the-box (OOTB) HR software generally refers to software that comes ready to use with standard, preconfigured features. That doesn’t necessarily mean the software can’t be configured. Many HR platforms offer built-in functionality along with options to adjust certain features, workflows, or settings.

Common built-in features may include employee records, payroll, and onboarding tools. Because the core features are already available, organizations can typically get started without custom development.

Every system is different, but common OOTB features may include:

• Payroll: Tools for managing employee pay, tax information, and other payroll data
• Employee self-service: Tools employees can use to access information and complete tasks, such as viewing pay information or requesting time off
• Onboarding: Tools for tasks like document signing, policy sharing, and onboarding checklists
• Time and attendance: Tools for tracking employee hours, attendance, and time off
• Performance management: Tools for performance reviews, feedback, and goal setting

What are the benefits of out-of-the-box HR software?

OOTB software emphasizes standardized, built-in functionality, which can make implementation more straightforward than a highly configured approach. Depending on your organization’s needs, potential benefits include:

• Potentially lower upfront costs. With less customization required, some OOTB solutions may cost less to implement than highly configurable platforms.
• Simpler setup. Because core features are already built in, OOTB software may require less configuration and development before your team can get started.
• More standardized management. With fewer custom configurations to maintain, OOTB software may be simpler for HR and IT teams to manage.
• Provider-managed updates. Depending on the platform, the software provider may manage updates and bug fixes, reducing some of the maintenance required from your internal team.

What are the drawbacks of out-of-the-box HR software?

OOTB software can offer less flexibility than highly configurable platforms because more of its functionality is standardized. Depending on the platform, you may have fewer options to adapt features or workflows to your organization’s specific processes.

Some drawbacks of OOTB software include:

• Feature gaps. A more standardized platform may not include every feature your organization needs or provide the flexibility to adapt certain features to your processes.
• Potential scalability limitations. As your organization grows or its processes become more complex, you may need features or configuration options that your current platform doesn’t offer.
• Integration limitations. Some OOTB platforms may offer fewer options for integrating with the tools your organization already uses, which can make it harder to keep HR data and processes connected.

What is configurable HR software?

Configurable HR software allows organizations to adjust certain features, settings, and workflows to better fit their processes and needs. These changes typically use options already built into the software rather than requiring custom code.

Out-of-the-box and configurable aren't necessarily opposites. Many HR platforms combine preconfigured features with options that let organizations adjust workflows, permissions, fields, and other settings. The difference often comes down to how much configuration a platform allows.

Depending on the platform, configurable HR software may allow you to adjust:

• Workflows: Adjust processes such as approval flows for time-off requests or performance reviews
• Role-based access: Adjust what information different users can view, edit, or approve based on their roles
• Custom fields: Create fields to capture information specific to your organization’s needs

What are the advantages of configurable HR software?

Configurable HR software gives organizations more flexibility to adapt built-in features and workflows to their needs without developing a system from scratch. Depending on the platform, potential advantages include:

• Flexibility as needs change. Configurable software may give you more options to adjust workflows, settings, or features as your organization’s needs evolve.
• Configurable workflows. Adjust processes such as time-off approvals or performance review workflows to better fit how your organization operates.
• Greater control over settings and access. Depending on the platform, you may be able to configure fields, permissions, and other settings around your organization’s processes.

What are the potential drawbacks of configurable HR software?

More configuration can also introduce complexity. Depending on the platform and how extensively you configure it, implementation, training, and ongoing management may require more time and resources.

Some potential tradeoffs to consider include:

• More ongoing management. Additional configurations may require more testing, documentation, and maintenance as your processes or software change.
• Implementation time. More extensive configuration may require additional planning, setup, and testing before your team is ready to use the software.
• Training needs. More complex configurations may require additional training so HR, managers, and employees understand how to use the system effectively.

How to choose the right level of HR software configuration

There’s no single right level of configuration for every organization. The best fit depends on your workflows, resources, existing technology, and how much flexibility you need from your HR software.

Consider these factors when deciding how much configuration your organization needs.

Core features

Start by identifying the HR functions your software needs to support and how much flexibility you need within them. For example, you may need payroll, benefits administration, and performance management, but the workflows and requirements within those areas can vary by organization. Consider whether built-in functionality meets those needs or whether you need more control over how certain processes are configured.

Costs

Cost can vary based on the platform, features, implementation requirements, and level of configuration you need. A largely preconfigured solution may require fewer resources to set up, while extensive configuration can add implementation time or costs. Compare both upfront and ongoing costs to understand the total investment.

Time and speed

Consider how quickly you need to implement your HR software and how much time your team can dedicate to setup. Preconfigured functionality may reduce some setup time, while more extensive configuration may require additional planning, testing, and training. The right balance depends on your timeline and how closely the software needs to fit your existing processes.

Current and future needs

Think about what your organization needs today and how those needs could change over time. Growth in headcount, new locations, changing processes, or added HR responsibilities can affect what you need from your software. Look for a platform that meets your current needs while giving you enough flexibility to adapt as your organization evolves.

Training and ease of use

Consider how much training HR, managers, and employees will need to use the software confidently. More extensive configuration can create workflows that better reflect your processes, but added complexity may also require more training. Look for a balance between flexibility and an intuitive user experience.

Ability to integrate

Consider how well the platform connects with the tools your organization already uses and may need in the future. Review the integrations available, what data can move between systems, and whether connecting your existing tools requires additional setup or resources.

Reviews and customer feedback

Customer reviews can give you additional context about implementation, ease of use, support, and how a platform performs in real-world settings. Look for feedback from organizations with needs similar to yours, and consider reviews alongside product demos, documentation, and conversations with vendors.

Next steps: Finding the right level of configuration

The right level of configuration depends on your organization’s needs, resources, and workflows. Preconfigured functionality can simplify setup, while greater configurability can give you more control over how the software fits your processes. For many organizations, the right fit may include a combination of both.

BambooHR brings core HR functions together in one platform, with tools for areas like payroll, performance management, and more. As you evaluate your options, consider how well a platform balances built-in functionality with the flexibility your organization needs.