Technology is facilitating every single aspect of our lives and HR is no different.
Although every company has an HR, not every company may have an HRIS. First HR professionals try to keep all employee data and requests organized through Excel sheets. As employees increase they may switch to time and attendance solutions like AttendanceBot. When they feel payroll is getting out of hand they may switch to solutions like Gusto that integrate with their attendance software.
But as the company begins to cross the 250-300 employee mark they may feel the need to transition to a full-service HR solution. That’s where HRIS come into the picture.
The HRIS system makes things easy for the HR department by allowing smooth handling of payroll, data analysis, data entry and any other HR-IT solutions required.
This article will elaborate upon what is HRIS software, its functions, benefits, and importance.
What is HRIS?
So what is HRIS, and why do companies need it?
The Human Resource Information System facilitates the activities of the HR department through a number of intricate systems and processes. The system calculating and budgeting all HR costs. It can increase productivity, help in making decisions, and improve the efficiency of a number of processes. Additionally, it also gives HR a centralized repository for employee data.
An HRIS can help automate hiring, recruiting, time tracking, performance management, onboarding and employee benefits.
It decreases costs, saves time, and helps cut down on piles of paperwork. An HRIS provides 360-degree support to managers, employees, HR, and even new hires. With so many benefits, it is necessary for HR to understand what is HRIS and how they can use it to do away with busy work.
How to Choose the Best HRIS System?
Every company has a different definition of what is HRIS. But there are some things that a company should keep in mind while deciding on an HRIS system.
Understand the Organization
What is HRIS is based on how well the upper management and HR understand the needs of the company. HR Managers can have a conversation with the employees and try to understand the HR problems they are facing. Trying to understand where HR is falling short can help create the line items of any HRIS.
But at the end of the day, the process is of HR understanding internal requirements coordinating with internal stakeholders like employees, management and IT. It ensures that any HRIS the company chooses will be able to satisfy the most people.
Research to Understand HRIS Alternatives
There are many HRIS providers in the market, but the company has to decide on the one that fits the bill. Only research can tell upper management which HRIS will best serve the company.
By looking at Capterra reviews, pricing, the company website, product demos, customer service and explainer videos HR will be able to differentiate the HRIS products basis their features. Although most HRIS are quite similar there can be minute differences that set products apart. These differences can help management understand what is the HRIS for their company.
Understanding the Pricing Plans
Once the research is done, the company can then understand what is HRIS and which HRIS is the most logical for them from a pricing standpoint.
The company should look into the per-user costs, deployment costs, end-user training costs. maintenance costs, troubleshooting costs and any other customization costs that they may be incurred. Even if the company isn’t particularly price-sensitive it makes sense for HR to look for the most cost-effective solution.
After employees are trained and the company has started using the HRIS system, the managers should encourage employees to use all the different HRIS functions. By doing so HR can determine whether an employee knows exactly what is HRIS and if they are facing any issues with it.
HR should also do a pulse survey to find out if the system has helped employees resolve the HR problems they were facing. If not, then they must revaluate if there need to be changes made.
Why is HRIS Needed for a Company?
A company should look into a few things before determining what is HRIS and which software they think is best for them. Here are a few things that can help understand different aspects of HRIS systems.
With the increase in cybercrime, it is essential to invest in a secure HRIS system. It is convenient to keep data secure on any cloud-based electronic storage medium as compared to physical files. Cloud-storage allows encryption and back-up, which enhances security.
Some Human Resource Information System software is suitable for small teams; others work best for larger companies. It is because smaller companies may face different problems as compared to large ones. Managers should understand what is HRIS for them and what they want from it in accordance with the staff size.
While transitioning information from the legacy solution to a new HRIS, HR should make sure that no data is lost. The HRIS system should ideally have an option for easy data transfer through their customer support or through the software itself. Data onboarding is something the company should look at carefully before investing in any HRIS system.
An effective HRIS system comes with competent customer service. It comes in handy when any bugs arise or when HR wants assistance. Reliable customer service will help the company immediately if any issues come up, and the company won’t have to face disruptions at work.
The HRIS systems should make things easier for the company, and it should work well with the other legacy HR solutions. The software should also be easy to use in general.
Simple Easy to Use Interface
Employees are notorious for being resistant to change. If they find that the HRIS is a pain to work with, they may fall back to requesting things from HR and expecting them to input it into the software. By making sure that the system is simple to use, the training costs can be decreased and adoption rates improved.
How to Know if a Company Needs HRIS Systems?
Human Resource is a complex job where an HR professional has a lot to do each day and not enough hours. If HR is having trouble keeping track of employee data and requests it is probably time to invest in some sort of HR software.
With HR having to deal with recruitment, processing payroll, updating policies, gathering intelligence and many others there can be a case made for HRIS. What is HRIS system going to do here? It makes things easy for the department so that HR managers can focus on tasks that add value instead of just busywork.
The need for this systems mostly arises because of the increasing number of employees in a company. An increase in the staff can make tasks complex, and it can become impossible for HR to deal with all employee requests without any software. There is only so much information that spreadsheets and piecemeal software can manage without becoming unwieldy.
What are the Benefits of Using HRIS Systems?
Less Wastage of Time
The HRIS systems can automate tasks, help pass data between systems and track events Effective HRIS systems also allow e-signatures for employees. It lets employees access documents on laptops or phones without the HR department doing it manually.
HRIS systems also allow HR to store employee information and allow employees to access it selectively. It means that employees can review their paid time off, leaves, and any other personal data at any time. This reduces the amount of HR queries employees may have and helps save time. It also improves transparency between the company and employees.
Decreases Chances for Errors
Manual work can have errors. If one works under a lot of pressure, the chances of these errors naturally increase. If there are any errors in calculations, then HR has a lot of extra work, and it can also eat up a lot of their time.
But with HRIS systems, there are little or almost no errors because the calculations happen electronically. t reduces the time spent on correcting human errors.
Better Decision Making
Most companies can easily connect HRIS to other legacy HR systems. It allows companies to access all sorts of HR data. This HR intelligence data allows professionals to come to more accurate and well-thought-out decisions.
For example, if HR has to recruit employees due to excessive overtime. What was an HRIS’ role here? The HRIS was probably to raise a red flag when overtime exceeded the budget set by HR. This data can help forecast recruitment and training requirements.
Better Employee Experience
HRIS systems allow companies to track employee skills, interests, and other relevant data. The company can detect problems quickly, work on solutions, and continue to work uninterrupted. It makes the business more attractive to employees as well because they feel heard and appreciated. It also allows companies to place employees in positions where they can use their skills adequately.
Most HRIS systems are available for employees on their mobile phones. It offers them flexibility because they can now access data and information whenever they want. These systems can also simplify the hiring process for the employees. They can act as a medium through which employees coordinate interviews according to their own schedules without long emails to their SPOC.
But what is HRIS system going to do to make other employees more productive? It can help HR choose the right employee for the right position. If the company does not designate talented individuals for the job that suits them the best, it can damage productivity drastically. HRIS systems can help HR understand the skills of each employee and provide suggestions for team switches.
Important HRIS Features
Simple onboarding can go a long way in keeping the employees satisfied. What is HRIS doing to make the onboarding process easier? The systems save time as employees do not have to go back and forth for onboarding materials. Everything they need is available on their laptops and phones.
Employees also do not have to fill up details over and over again. Once they have provided their information during recruitment, the HRIS can extract the same and use it at different places. Employees and HR individuals can save massive amounts of time and energy if this simple information transition is automated.
A human resource information system helps companies to know about any changes in the compliance laws regarding payroll. They also allow HR to store data for the period designated by law. For example, HR can access the information they need for FICA without going through several files to find the same.
It can help save a lot of money by helping companies adhere to laws without the fear of unintentionally breaking them.
Today there are many benefits available to employees. Most often, employees are provided customized benefits packages. But with this comes the cumbersome process of managing all these benefits. But with an HRIS system, all the benefit packages for each employee are in one place, and it becomes much easier to manage.
An effective HRIS system also allows employees to select their benefits plan without assistance from others. It is possible because of the employee self-service (ESS) feature, in which they can do their own research, and make changes to their benefits packages if they want.
Time and Attendance
With HRIS systems, employees can track their schedules and make changes to them if required. By giving employees the freedom to make changes in their shifts, companies can foster loyalty and empower employees.
By making the process of punching in and out and taking leaves easier employees can focus more on their work. They can be sent timesheet reminders to ensure that their punches are accurate.
Managers can also set overtime ceilings to ensure that budgets are adhered to. Although, it would be important to note that if your only purpose of taking an HRIS is to automate time and attendance there are a number of piecemeal solutions available.
AttendanceBot is a simple time and attendance tracking app that works right inside Slack and MS Teams. On one hand, it provides accurate time tracking with an intuitive dashboard for advanced reporting to HR. On the other, it helps employees punch in and out with a single click, sends out punch reminders and gives them a way to look at all their HR data on a simple dashboard. Set up a demo with us today and find out how AttendanceBot can help your employees thrive.
Does your Company need a Human Resource Information System?
There are many HRIS systems in the market. But it is up to the companies to decide which one works best for them. They should do their research and involve employees and any other stakeholders of the company. Doing so shows transparency and avoids chaos at a later date.
Even after the company has decided on an HRIS system, the upper management should consider checking in now and then. It makes employees feel valued and also ensures that the HRIS system they are using is actually helping people.
What is HRIS varies from company to company. The selection of HRIS can be daunting, but with the right research, a company can zero in on their best alternative.
Are you planning on getting an HRIS for your company? Do reach out to us @HarmonizeHQ if you’re facing any issues and we’d love to help.