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Choosing the Right HRIS: Key Factors to Consider for Your Organization

Choosing the Right HRIS Key Factors to Consider for Your Organization

Introduction

HRIS  is an abbreviation commonly used to describe A Human Resource Information System. In today’s time, it is an integration between human resources and information technology. This centralized system stores, tracks, and manages all of the organizational data that is related to human resources. This also includes specific data like employee demographics, time off balances, attendance hours, medical details, benefits policies, schemes, and more. Every single information starting from the onboarding of an employee to the attendance can be managed from a single platform. All these essential HR data can be accessed from any location at any time, provided accessibility and permissions are granted. This platform single-handedly simplifies and automates the process of maintaining employee records, while simultaneously ensuring all the laws on any employee information are adhered to.

HRIS  (Human Resource Information System) is also considered to be manual labor-free as it saves the time and effort of going through several files or cabinets to find a single piece of information or more. As all the data is easily accessible through a single platform, employers can generate reports effortlessly within minutes. These reports can include but are not limited to turnover, employee recognition, diversity, performance management, and much more. The reports are used as a tool to have an overall picture of the organization that would allow employers to make meaningful decisions.

As HRIS is continuously being updated with current technology, ensuring organizations stay on top of the HR processes, it is important to understand when and if an organization requires HRIS software.

When does your company need an HRIS?

1. An increasing number of employees

When the employee count in an organization is below 50, it may be easy for one to manage all the operations of HR through the manual process. However, as the employee count begins to increase steadily, managing all the employee data becomes a task. The manual inputting of data can lead to errors, which can in turn lead to a compliance issue. In most cases, such errors lead to employee dissatisfaction. This is when HRIS  (Human Resource Information System) plays a pivotal role. With the help of the HRIS system, data can be stored from multiple functions of the HR. It can be organized in a way that is easy to access and most effective.

2. Using different systems for different processes

HR in an organization has many functions—recruitment, attendance, payroll, and more. Every system singularly used for each of these functions can lead to a decrease in an organization’s productivity not to mention a pathway for unimaginable errors. Employees find it hard when they are asked to use more than one system for their HR processes. This leads to constant confusion among the staff. However, this is where the HRIS system swoops in with a solution. Having an integrated HRIS system, employees can now access and complete any HR tasks from a single platform. This saves the room from error, confusion, and constant repetitive questions. Since all the data is stored in a single system, the HR team, on the other side, can get a better insight into the workforce’s behavior patterns.

3. Lack of employee experience

Over time, organizations have involved employee rankings. These ratings have established employees that would be one of their top priorities over the next few years. This is when the HRIS (Human Resource Information System) system comes into play. Having an automated system allows every employee of the organization to be more involved, enhancing the culture of the organization and the employee experience. It will smoothen the communication between the employee and employer by facilitating transparency, accountability, communication, and collaboration. These factors are after all the pivotal drive of a satisfactory employee experience.

What are the features to look out for in an HRIS?

While handling all the HR tasks associated with managing the workforce can be time-consuming and challenging, the best way to reduce the burden and boost efficiency is through an HRIS system. However, it all comes down to choosing the right one for an organization.

Complete Payroll Solutions, like Paybooks, offers HR consulting to companies of all sizes and they often back up services with personalized HRIS technologies for a range of HR activities like hiring, onboarding, and performance management.

Paybooks management knows the key factors businesses must consider when looking for the right solution to integrate HRIS into their system.

Below are the key factors for HRIS  (Human Resource Information Systems) election one must consider that will help identify the ideal HRIS for one’s business:

  • Features
  • Technology requirements
  • Cost
  • Implementation
  • Support
  • Scalability

Six Factors One Must Consider When Selecting an HRIS

1. HRIS Features

While each HRIS system is slightly different from the other in terms of the features they offer, their typical functions include:

  • Recruitment/applicant tracking.
  • E-Verify
  • Background checks
  • Onboarding
  • Benefits enrollment
  • Performance reviews
  • Position management
  • Compensation management
  • Employee self-service

HR’s will need to do an assessment check before investing in the system to ensure they are aware of their requirements. The requirements become the must-have features. As the organization grows, these features can be upgraded. However, every organization must first start with the basic package, and as the system is used, there are multiple add-on functions or modules that can added at a later stage. It all depends on the HR’s needs. There are other alternatives like a comprehensive system that would include everything an organization would want on the first go. After deciding on what features suit best, and a thorough HRIS vendor comparison, finding a vendor that would meet the goals and needs would be the next step.

2. Technology requirements

Many HRIS systems today are cloud-based, which reduces the organization’s overhead and new equipment purchases, so one must find out if the vendors they’re considering offer online solutions. Another major factor one must ensure is that the HRIS selected integrates seamlessly with any other systems in place. It is vital to check to see whether the HRIS will connect with other internal business systems as well as outside vendors, especially if the company is using different solutions for managing functions such as payroll time and attendance. Or one may want to look for the one platform that would handle all of these activities together. The vendor’s security protocol needs to be checked as well since there will be a lot of sensitive data stored in their database. It would be imperative to know about their internal controls their security audit information and procedures.

3. Cost

On a regular front, HRIS generally charges a per-employee per month cost. The cost can vary depending on the features selected. The basic system is ranged on the lower end and as more features are added, the prices increase accordingly. However, once an organization has settled on the feature they would need, they can then check with the providers to find a suitable cost at the budgeted range that would suit them. Most providers settled for a one-time setup fee that also includes the configuration of the solution along with training and support.

4. HRIS Implementation

Even though the goal of an HRIS system is more about lifting the load off the HR department, it is very vital to find out beforehand if the implementation of the system would have any side effects on the day-to-day operations. Finding a flexible provider, and customizing HRIS for your organization with the top HRIS system with features that would suit your business requirement, instead of theirs, becomes an important priority. Additionally, along with the system, it is very important to find a project manager who is very hands-on in ensuring that the organization gets the best out of the automation of the HRIS system which would then eliminate all the manual labor from the daily tasks. Getting references from customers who have used the software would be an additional bonus to knowing if this is the right choice or not.

5. Support

The HRIS  (Human Resource Information System software) evaluation begins once the implementation phase ends. Selecting the right HRIS means the vendors you have chosen for your business have a dedicated service model that ensures businesses have online support the moment their system is live. It is important to have a team of professionals that will help you get the best out of the system, and it up to date with the customizations of your system. These professionals can also offer training or yearly education on the upgrades or add-ons of the features. This ensures that the gaps to adoption are eliminated, and software updates and enhancements will be communicated so that one can make sure they are always optimizing their use of the HRIS.

6. Scalability

Selecting HRIS means it has to support your business as it grows. It is important to confirm that the systems chosen are adaptable to new technologies like – accounting/ERP systems, job costing applications, eLearning programs, and more. This way one’s business can thrive and have a smooth transition in upgrading its system as opposed to the constant switch of platforms. This user-friendly system will support the growth of the business and taking the right advantage of its functionality will help any business have an engaging workforce that will leverage the tools and maximize the use of the system.

Conclusion

While selecting HRIS  (Human Resource Information System), it’s essential to ensure that it’s consistent with the HR needs of one’s organization. In case, the implemented HRIS is not suitable for the employees and the organization, this can lead to discord. Before buying an HRIS, ensure a thorough HRIS vendor comparison is conducted where you understand the benefits and features that come along with it.

Paybooks, our HRIS, has everything you need to take your organization’s HR processes to the next level. It can be customized according to your organization’s needs, and workflows can be created to streamline your routine HR tasks.

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