As your small business grows and your need for detailed employee data increases, it may be difficult to keep everything in order. You’ll need to track your employees’ contact information, salaries, benefits and a host of other HR data. Many businesses rely on a human resources information system (HRIS) to organize all this data in a single place. With the right criteria in mind, you can find a solid HRIS platform that provides numerous benefits to your small business.
HRIS software (also known as a human resources management system, or HRMS) organizes all kinds of worker-related data points, including sensitive identifying information like a worker’s age, gender and address; an employee’s workplace information, like their title, pay scale and department; the benefits they’ve opted in to; and their timecard and time-off requests.
Like other HR software platforms these days, HRIS programs are browser-based SaaS solutions that serve as an all-in-one destination to store up-to-date information on a company’s workforce.
Though most of this information can be collected and entered into the HRIS software at the time of an employee’s hiring, the system must also be easily editable in case any changes or additions to an employee’s file are needed. An HRIS can also afford HR professionals the ability to generate in-depth reports, which management can use to find and address ongoing patterns within the workforce.
As your team grows and the need to organize sensitive employee data becomes more apparent, implementing an HRIS for your company becomes more important. Here are five major benefits of using an HRIS.
Before the days of cloud storage and high-speed computing, HR professionals had to collect, organize and retrieve employee data by hand. This usually meant relying on physical documents, bulky filing cabinets and time-consuming manual processes. Leveraging modern technology, an HRIS creates an easily searchable database of items that administrators can access in seconds.
Since an HRIS mitigates the tedious aspects of HR, it allows your HR leaders to work on new initiatives that could benefit your overall company. A good HR department will be able to react to employee trends more easily and work on fostering a company culture that increases morale and employee retention rates.
As a small business owner, you are beholden to local, state and federal regulations. Whether it’s the Health Insurance Portability and Accountability Act (HIPAA), the Worker Adjustment and Retraining Notification (WARN) Act or any other major HR-related legislation, a good HRIS assists your team in ensuring the company stays on the right side of the law and away from costly penalties.
With the ability to file, retrieve and edit employee information quickly, an HRIS package allows your HR professionals to do their job without all the tedium and repetition. What used to take minutes or hours could be trimmed down to seconds, as requests are approved, timecards are validated and payroll is processed in moments. This can be even more beneficial when managing remote employees or hybrid staff.
You may think that your non-HR employees won’t notice a difference once you implement an HRIS, but that’s not true. A good HRIS will be immediately visible to any new hires since the platform can help with the talent acquisition and onboarding process, while existing employees will be able to manage their time cards and request vacation time more easily through the system. By investing in an HRIS, you can show your employees that you’re willing to invest in them.
With the ability to organize and store employee data, an HRIS serves as a force multiplier that can empower your company’s HR team to operate more efficiently.
You will most likely see some growth within your company before you need an HRIS. How much growth you’ll need to experience for an HRIS to be worth it depends on your company’s circumstances, but a good indicator is when it becomes unwieldy for your HR employee or department to do their work manually. The moment you notice a bottleneck in HR is when you consider adopting an HRIS.
The right HRIS can provide a huge boost to your company’s HR department. It’s not all about the tools, but the purpose those tools will serve for your business. As such, you should look for an HRIS that fits your company’s needs.
Some factors to consider when choosing an HRIS are your staff size, the reporting and tracking capabilities you need, how the system handles processes like training and payroll, and how intuitive the system is for your employees.
As with most services you can add to your small business, you should look for a feature-rich solution that will best address your company’s needs. Look out for these features in your search for an HRIS.
A good HRIS gives you, your HR department and your other employees access to contact information for anyone on the team. By providing a database and directory for each employee, an HRIS can engender communication between employees and departments, thus creating a more productive workplace.
It takes a lot of effort to recruit, hire and train new additions to your team. With a good HRIS, your company’s hiring managers can see any hopefuls who apply, leave notes about interviews and track where any candidate is in the application process. Once hired, that new employee can use the HRIS to go through company-sanctioned training modules and continue the onboarding process.
Your employees need to keep track of their enrolled benefits, and you need to make sure the benefits you offer are working. With an HRIS in place, both parties have a centralized location to track 401(k) plans, manage healthcare plans, and make adjustments when necessary.
There are plenty of online payroll solutions out there, some of which are part of an HRIS platform. Through an HRIS, managers can track employees’ time and attendance, while employees can use the system to clock in and out, request paid time off, and view their paychecks.
With so much data at your fingertips, you’ll want to do something with it all. Through an HRIS, you can create meaningful reports that highlight where your company is succeeding and where it can improve. By quantifying the data, you can ensure that your company operates at peak efficiency.
Along with the different features you can look for in an HRIS, there are different types of platforms that relate to different aspects of HR and use cases for data.
The HRIS features and type you should look for depend on what your business needs at its current stage, but a good HRIS should always make your HR employees’ jobs easier and provide insights regarding trends in your workforce.
No two HRIS companies have the exact same pricing model. Since each service differs in its features and the number of users it supports, prices will vary.
Since these platforms are usually cloud- or browser-based, they often charge a monthly fee per user. If your company needs access for only a handful of users, some vendors will offer their services for free, since you won’t be taking up much bandwidth and you’ll already be in their ecosystem once you start experiencing growth. Paid accounts range from $1 to $15 per user per month, depending on factors like features and add-ons. Ask your potential HRIS provider about any additional costs, such as setup, consulting and support fees.
Depending on the services you need, HRIS software will likely cost you somewhere between $1 and $15 per month for each user.
There is a wide range of software available to address HR needs – such a wide range, in fact, that it can be daunting to attempt to wade through and review them all to determine the best picks. We’ve done some of the legwork for you and have identified some of the best HR software on the market today. Our selections include the following:
Compare our best picks to learn about the specific features they offer and to determine how they meet the needs of your business.
Most companies will agree that an HRIS can help streamline operations, improve service to employees and, ultimately, improve the employee experience. In a hiring landscape that is increasingly competitive and an employee environment where employees are demanding more freedom, flexibility and work-life balance, the right HRIS can ease the burden for you, your HR employees and your entire workforce.