When Do You Need To Buy an HRIS?

When Do You Need To Buy an HRIS?

HR Technology

2 minutes Read | Published June 11, 2020 | Jem Santos

HRIS or human resource information system is a type of software that enables multiple data-related functions for the management and automation of HR processes. This includes a database for storing employee information as well as tools for managing data in processes such as recruitment, payroll, and performance management. Organizations seeking to digitize workflows and deliver results at a faster pace can benefit from this solution. Transitioning to the use of HRIS requires various considerations, including cost, deployment requirements, and ROI.

What are the advantages of HRIS

HR website Onrec summarizes key points from a recent report from Reward Gateway, which claims that 89% of HR professionals say that integrating HR tools into their current workplace technology is a top priority in 2019. The same report has revealed that “HR workers are spending seven hours per working week manually checking, responding to, and keeping up with different HR applications.” An HRIS provides solutions to these challenges and companies can benefit from this technology in terms of productivity and efficiency.

The following are some key advantages of integrating HRIS into an organization’s HR processes:

Data management and analysis - The key advantage of a digital solution is in its capacity to store and analyze data. Keeping track of hundreds to thousands of employees requires a database with functionalities that allow for easy reporting and analysis of statistics and trends.

Standardized workflows- Rather than having to rely on email, file transfers, and digital folders, an HRIS provides the digital workspace that centralizes all of the processes and information. This way, all HR personnel globally can establish the same SOPs and guidelines.

Easy and real-time maintenance - Updating employee information, including personal data, employment status, and performance records can be a tedious process of having to fill in multiple databases or files. With a digital solution, modifications can be made in real-time through a centralized system that can reflect changes in all relevant reports. This ensures that records are always up-to-date.

Security - HRIS software typically includes privacy and security features, which can manage access and restrict users wherever needed.

Does your organization need HRIS?

HRIS software is not just for large organizations. An article from Workforce shares how small companies are starting to invest in HR technology, with the main driver being the belief that they will “create greater efficiency, encourage collaboration, improve quality and lower costs.”

Growth is not the only possible factor; there are many possible reasons your organization is ready for or even requires an HRIS. Here are some telltale signs:

  • You have redundant processes in your workflow, costing your company time due to the duplication of effort.
  • Your HR team increasingly requires manpower for clerical tasks, such as simple data encoding or handling paperwork--tasks that can be easily automated.
  • You need a better way to analyze employee data for information on turnover and retention rates, company growth, and performance management.
  • You want to improve and speed up the recruitment process.
  • Your company is preparing for growth and operations are becoming more complicated.

How HR teams can innovate

In 2018, Deloitte reported that "innovation is now coming from HR functions themselves. HR departments are thinking more creatively, asking more questions, and pushing vendors to adapt to new management models by demanding solutions that are more team-centric, intelligent, and easy to use."

Technology opens the door to many possibilities for HR. More than simple data management, an HRIS solution can make a significant impact on employee performance, talent retention, and operational efficiency. Start asking questions about what your company needs to maximize your human capital, and how a data-driven perspective can solve these issues and fuel innovation in HR management.

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