As business continues to change, more and more companies are using Human Resources Information Software (HRIS).
HRIS is software that allows companies to track the data information needs of Human Resources, such as payroll, management and accounting functions within a business. Many HRIS systems enable employees to update their information, therefore freeing HR staff for more strategic functions. Every company is different and it’s important that you research different HRIS systems and find a system that will fit the company’s needs. By implementing an effective HRIS system, your company will be well on its way to increasing confidentiality of their employees' information.
Below are just a few of the daily benefits companies can count on when using an HRIS system:
- Streamlined HR and payroll processes
- Paper generation decreases significantly with a good system
- Documentation of training, benefits, disciplinary warnings and workplace accidents is more consistent
- Historical wage rates, salary increases and information on current and former employees are stored in one place
- Accurate and consistent calculations of accruals for vacation, sick or other PTO programs
- Allowing employees to make changes and view information on line, thereby improving accuracy and cutting down on HR administrative time
- Allowing supervisors immediate access to pertinent and allowable staff information without going to HR
- Tracking government regulations such as Family and Medical Leave Act and OSHA (OSHA is a regulatory body, not a regulation)
In today’s fast-paced world, where instant information is expected, a strong HRIS system can help business leaders make more informed decisions around their key assets – people. Quick decisions in these areas are needed whether the economy is strong or weak. HRIS systems that most effectively serve companies, track the following:
- Utilization of employees
- Liabilities as it relates to PTO payouts and severance calculations
- Employees’ statistics that can make succession planning decisions easier and more objective
- Direction for training based upon current employee skill sets and future business directions
- What-if scenarios around the ultimate impact HR decisions would have on the business
- Back-up and storage of key employee information for disaster planning purposes
Whether companies operate globally or locally, HRIS systems are a necessary asset for companies. Being able to provide important employee information quickly is always essential, especially during these tough economic times.
To determine what type of system your company needs, follow these simple steps:
- Define your company’s goals, future needs and what key items you must have in this software. Be brutal and exhaustive in your assessment. It’s far easier (and less costly over the long-term) to include any extras in your initial implementation, than to add them later.
- Conduct a system needs assessment. This includes, but is not limited to:
- Current network and hardware capabilities
- Upgrading required
- Skill levels of current employees that will use the system
- Evaluate your system requirements to find the right software to meet your needs.
- Determine a skilled project team for the implementation, including representative from your vendor as well as from your own company.
- Develop a training plan for learning the software, and designate a point-person from your company to implement this training
Your HRIS systems will likely need updating every five years (or possibly sooner). As business conditions change, your HR information needs will evolve and your HRIS will have to evolve with them. If you aren’t currently using an HRIS system, you are missing the ability to assimilate and analyze data about your most important and costly assets at an economic time where it’s imperative to have it.
Source: RSM McGladrey |