Are your HR processes still operating in the 20th century? Do you still keep massive paper files and use clunky technology that can’t really do what you need it to do? Are you less productive than you could be because you spend too much time sorting, filing, searching, and processing everything manually?
If that sounds like you, then it’s time to take another look at your HRIS. As the keystone for your HR processes and the foundation for any additional steps you want to take with HR technology, your HRIS has the power to deliver benefits like cost savings, increased productivity, and better retention and engagement. But it can’t do that if it doesn’t have the functionality to support a 21st century HR strategy.
How do you know if your HRIS isn’t making the grade? Here are four telltale signs.
1. You Haven’t Moved into the Cloud Yet
A common reason companies haven’t yet made the transition to the cloud for HR is security. But the truth is that cloud security has made great strides over the past decade, and most cloud platforms have stronger security measures in place than an independent business might be able to implement alone. Providers also update and improve their platforms on a regular basis, which means you always have the latest version of any available security measures. You can also choose whether to invest in a public cloud solution, private cloud, or hybrid model based on your security needs and other requirements.
Security concerns aside, they are plenty of reasons to move into the cloud if you haven’t already done so. Here are just a few:
- Cost – Software-as-a-service (SaaS) often has a lower total cost of ownership than purchasing and maintaining your own software. In addition, with a cloud system you don’t have to operate or maintain your own servers and you automatically receive updates as they are released.
- Scalability – With a cloud system, your software can grow along with your company. It’s easy to scale up quickly from month to month, without having to purchase and implement new software.
- Access – If you have remote employees, cloud platforms make it easy for them to access your system any time, anywhere. There’s no need to login onsite, so you can more easily accommodate flex work options or employees working out of town.
2. You Don’t Have the Technology Sophistication for Advanced Analytics
Analytics has become the heartbeat of a strong people strategy. The right data combined with intelligent analysis can give you a wealth of information about your current employees, candidates, and processes. For example, tracking workforce metrics like turnover, retention, and engagement can help you cut costs and improve efficiency to keep employees engaged and productive.
Just as importantly, data is the fuel that powers technology tools like process automation, predictive analytics, and recruitment sourcing and screening. If you don’t have the right data, your data isn’t reliable, or it’s not accessible, you won’t have the opportunity to implement transformative technology that can benefit both your bottom line and your workforce.
3. Your Technology Doesn’t Support Your HR Strategy
Technology should always flow out of strategy, not the other way around. If your technology hasn’t moved out of the 20th century, chances are your strategy won’t either. Many of the HR predictions we’re seeing for 2020 hinge on your ability to implement technology strategically for better engagement, more efficient learning, stronger employee performance, and effective recruiting. Here are a few up-and-coming HR tech tools that can supercharge your strategy this year:
- Employee experience platforms
- Mobile career sites and applications
- Automated candidate screening
- Candidate CRM platforms
- Interview chatbots
But if your HR department is still operating with data silos, offline records, and outdated tools, you’ll have to build your strategy around those processes.
4. HR Is a Cost Center, Not a Value Contributor
For decades, HR was viewed as a cost center. In other words, it required resources to keep it running, but it didn’t provide anything of value to the organization. Thanks to data analytics and people management tools, however, the human resources department has begun to change that image. By providing insights that improve decision-making, employee support, engagement, and retention, HR has the power to reduce your costs and improve your bottom line. To get those results, however, you need to have technology that takes advantage of the data you probably already collect.
Upgrading your HRIS gives you a strong foundation for building out your technology toolbox. To implement the latest advancements in recruiting technology, for example, you need an integrated database, reporting capabilities, and ways to collect and track data. As you begin transitioning your processes to the new system, you’ll also enjoy benefits like reduced costs, higher productivity, better user experiences, and higher engagement.
That’s what we call a win for everybody.