HRIS Systems – Why Do Small and Mid-Sized Businesses Need Them?
Updated: Nov 15
Hi, everyone! My name is Caly Grogan, and I am a Talent Generalist over at Recruiting Experiences. I am so excited to engage with the blog for the first time!
During my time at Recruiting Experiences, I've been able to see that many companies out there are spending more time (and money!) than necessary on HR-related processes that could be streamlined by using updated HRIS systems.
What’s an HRIS system?
A human resources information system (HRIS) is a software solution that maintains, manages, and processes detailed employee information and human resources-related policies and procedures.
The core HRIS features often include:
ATS (Applicant Tracking System): Helps to gather and organize information about applicants all in one place. HRIS systems have ATS’s built-in to aid with tracking candidates, evaluating them, and making great hiring decisions.
Employee Directory/Database: A main goal of an HRIS is to manage all the sensitive employee information that HR is responsible for. Being able to access this information from anywhere at any time is key to a streamlined process.
Onboarding: The onboarding process can be grueling for an employee who has to go through a manual process of hardcopy paperwork. Fortunately, the process does not need to be a time-consuming responsibility of HR because onboarding paperwork can be completed digitally by the new hire before they even come into work on day one.
Time and Labor Management: Employees have the independence to enter their own work hours and leave requests as they see fit within an HRIS. Further, the ability to track employee timelines and overall attendance rates can be easily improved.
Payroll: An HRIS allows for the number of hours worked to be accurately calculated, so appropriate employee salary amounts and future scheduling can be more simply determined. • Reporting: HR reporting is critical as it provides companies with the ability to forecast future HR events for risk mitigation and effective planning by using predictive analytics. Tracking issues, planning more effectively and strategically, and data-driven decision making are made possible by reports and using them advantageously.
Performance Management: Performance evaluations can be designed and customized to fit company needs, so employee objectives can also be planned in alignment with the company’s strategic objectives. The ability to see and evaluate accurate employee performance and effectiveness reports permits the monitoring of goal progress.
Storing employee information, tracking data trends, and doing manual processes such as benefits administration all becomes easier and more efficient using an HRIS system. Some of the most popular companies who implement HRIS systems for small and mid-sized businesses today include BambooHR, Paylocity, and Rippling.
Lack of HR and HRIS
Unfortunately, many small-to-medium businesses do not prioritize a Human Resources function until the company is seemingly drowning without one. It may appear that a manual process with a singular administrative assistant is working for a small firm, but it leads to an overload of work for the acting HR person(s), an absence of processes, and decision-making without data. It is important for Human Resources departments to have a strategic seat at the table as their work ensures that many laws are followed, data is tracked, and employees get the assistance they need. Accordingly, HRIS systems free-up Human Resources employees to do the more strategic and complex work that needs to be done because actions such as typing in individual benefits for each employee are not necessary in today’s technological world.
Why Should your Company Invest in an HRIS?
Human resources, as a business function, is extremely busy with responsibilities including recruiting, time-tracking, benefits, payroll, onboarding & training, legal compliance, and employee relations/engagement. Managing the volume of responsibilities without quality, smart tools is exceedingly time-consuming, confusing, and difficult. That is where an HRIS can help. An HRIS serves as a one-stop-shop for the employee base of a company, ending the need for many vendors. Finding a process that is scalable and repeatable enables employee self-service, centralized employee communication, increased HR automation, and powerful people insights. Through the use of HRIS’s, human resources employees are given time back into their day to manage their people and focus on their teams' initiatives. Moreover, it allows the team to make more strategic decisions. By storing all company and personnel data in one place, there is an opportunity to see a more holistic view of the company so that areas for improvement can be better identified. Consistent reporting pushes companies to achieve their business goals while also empowering HR to make more informed decisions and prove impact.