HRIS (Human Resource Information System) begins to make sense once your small business has 20 or more employees. The fact that HRIS pretty much performs all the Human Resources functions in large and global enterprises should be of no real interest to you at the moment. But, on the assumption that you want to grow, you need to get on board – the sooner the better.
Now, not all small businesses want to grow beyond their comfort level, but there is an HRIS solution for any business that feels its oats and wants to build and expand. Any business that wants to compete in or dominate the public marketplace needs technology solutions in advance of its inevitable Human Resources challenges.
Because Human Resources is no longer a simple matter of tracking, filing, and disciplining, solutions to its increasingly complicated challenges lie in the increasingly versatile functionality of HRIS programs. And, before you go shopping for HRIS support, you need to know what your functional needs actually are.
Administration
The primary small business need is for a streamlined administrative tool. The HRIS ability to reduce manual work in payroll tracking, time and attendance, and the like will increase HR productivity and guarantee accuracy. By reducing the number of eyes and hands in the process, HR technology improves efficiency, lowers costs, and reduces errors.
These administrative advantages drive small business owners to HRIS or core HRMS, but they fail to see or capitalize on the ability of HRIS to change HR for the better. When HRIS frees up HR management time, it offers the opportunity to improve Human Resources performance. Improved administrative efficiency presents an opportunity for HR to study and reinvent its way of doing things. For example, the “new” data provides information of interest to Operations and Finance. It supports workflow and turnover analytics of importance to all interested functions.
Data Management
An HRIS gathers, correlates, and integrates key data about application tracking, employee turnover, benefits administration, and regulatory compliance issues. It reports on employee headcount, benefits costs, compensation administration, and reports for OSHA, EEOC, and other agencies.
HRIS can provide the data in the formats executives want for long-range planning, talent management, and succession planning. It can provide real time reports on labor burden, staffing needs, and skills assessment. An HR system can include report-formatting templates for reporting resources shared with interested functions. HRIS programs are setting the pace for report design and utility where Human Resources management lacks the design skill. In making information available to those who need information when they want it, HRIS reduces the load on Human Resources staff.
Employee Self-Service
An article in University Business states that what began as a benefit of HRIS – the ability of employees to access their own data – has become a necessity and an employee expectation. By pressing employees to be accountable for their side of the Human Resources administration – benefits, training, change of address, and more, HRIS significantly reduces the least engaging HR workload.
HRIS portals encourage employees to apply for postings and promotions, complete web-based training and testing, and complete and revise online benefits administration. In assigning accountability to employees, employees become data-consumers. Portals give them access and ownership as well as a share in corporate transparency. HRIS applications and portals can allow employees access to their own performance metrics as well as give them the ability to participate in and monitor their own performance management.
When shopping for an HR system, understand that you are looking for more than a payroll administrator. The technology available in ready or customized programs lets owners shift their Human Resources administrative needs to a technology solution. In addition, now and into the business’s growth, it allows Human Resources management to become directors and strategists, policy and decision makers.
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