What is a Human Resources Information System?
HRIS is a software program that automates many HR processes for businesses. Many types of systems are available to purchase that enable data to be uploaded once and then be managed by either the employer themselves or their HR or administration employees. It can be customised to suit a business’s needs, and be installed on the business’s servers or available in the cloud.
It is accessible to employees as well as the employer to ensure a range of HR information is collected, received and disseminated to any party that requires it.
There may be an ongoing cost associated with using the software, depending on the type of software used and the complexity of tasks that it is needed for. On average, the cost can range from $1 per employee per month to thousands of dollars per year, and may be on top of set-up fees.
To see the available providers of HRIS software packages, google ‘HRIS software Australia’. Customer review and comparison sites may also provide extra insights into different software products and providers.
What does HRIS do?
HRIS software can undertake many basic HR tasks like onboarding, including recording superannuation, tax and bank details from a new employee; recording attendance; processing payroll; managing annual, long service and personal leave; and organising expense reimbursements.
It can also do complex HR tasks such as organising reward and recognition processes, including performance management; managing recruitment by filtering candidates through application tracking systems, scheduling interviews and conducting reference checks; and coordinating learning and development, including compliance and certifications.
Some of the more unusual tasks that employers and administration professionals may not realise HRIS can perform include ensuring that employees are paid market rates, creating a job ad to post on a website and providing access to online course libraries. It can also alert employers to employee work anniversaries or birthdays, enabling them to boost employee engagement by showing appreciation to their staff.
One of its biggest benefits is being able to centralise communication, ensuring that all parties using it are receiving any information being distributed. It means, for example, there will be no more issues with information getting lost in a chain of emails or being sent to the wrong person.
Some software providers also offer consulting services, meaning employers can obtain the services of a human resources professional to deal with complex situations, which is usually provided for an extra fee.
Why is using a HRIS a good idea?
Many small businesses do not have the capability to hire staff who are dedicated to human resources work, so a HRIS can take a lot of the workload off the shoulders of the business owner or administrative staff, freeing them up for other tasks.
It can also more easily keep track of different employment arrangements, such as staff who work across different awards or enterprise bargaining agreements, ensuring they receive the entitlements that are available to them and reducing the risk of mistakes being made.
With more staff working remotely, it can mean requests and issues can be dealt with more quickly, as they have access to the system wherever they are located.
It can also help employees take ownership of their own administration tasks. For example, having access to a system that can clearly reveal how many days of annual leave they will have owed to them on a certain date in the future can better help them plan time off, or it will ensure they always submit expense reimbursement requests with the right receipts.
HRIS software can also quickly produce reports based on the data, such as a list of appropriate candidates for a job vacancy or the top performers from the past month. It can help employers meet legal requirements, such as ensuring it has the correct number of certified staff or by completing tax forms.
It also performs tasks that may already be undertaken by several types of technology, replacing several apps and computer programs with one easy tool.
Does using HRIS mean I will have to sack my HR staff?
HRIS may replace many tasks that staff complete but it does not need to replace the employee. In fact, it may increase the productivity and performance of existing HR staff, as they have more time to be able to carry out tasks that cannot or will not be automated. For example, they will be able to conduct a more thorough job interview process with candidates to ensure the best candidate is hired, or better analyse information from reports compiled by the HRIS system to make better decisions.
How to select the best HRIS
Firstly, consider the tasks that could be automated. These could be the most time-consuming tasks each week, those in which mistakes are most commonly made or the most irritating tasks for employees or the employer to perform. Speak to employees to determine what they may find useful if it was available to them, in addition to what the business may require.
Next, determine the budget to spend. While no one wants to spend more money than they have to, consider the cost of the time that an employee now spends doing these tasks manually, and the payoff that could be returned if their time was free to do other more beneficial tasks.
If possible, talk to other business owners about the systems that they use for this work to discover if they recommend any particular software, or if they would urge against using a certain product.
Security and employee privacy is also an increasing issue that should be considered when purchasing any software or tech product, while automated backups of data is also a good idea. Determine what kind of services a software provider offers in these areas.
Keep in mind scalability, as employers will want to invest in a system that will meet their needs now as well as in the future if they are to continue with business growth. This not only includes the system’s capabilities to handle more tasks that may need to be automated in future, but also the costs associated with expanding its capability.
Feel free to request a demonstration of the product from the provider to determine functionality and usability before committing to its purchase. Consider what ongoing support and services the software provider may offer, particularly if problems are encountered in future. Some providers may have designed a system exclusively for small businesses and others for large businesses, while others may have a speciality in servicing particular industries and have tailored products to suit common tasks, so keep this in mind too.
Things to remember when using a HRIS
Some employees are quick to adapt to and adopt new technology, but others struggle to learn a new way of doing things or a new computer system. Routine and habit may also play a part, so be patient with employees until they can get up to speed. It may take some employees longer to do certain tasks initially, but in the long run they will save time.
It can also take several weeks to implement new software, so do not expect an overnight fix to an ongoing issue.
Also, remember that an HRIS compiles information but does not analyse it, nor can it make recommendations. For example, it may indicate poor performance in an employee who has not met their KPIs, but only by dealing with the employee directly in a performance management conversation will any reasons for their poor performance be revealed.
Automation has come a long way and is improving every day and HRIS software can be a handy tool for any business to keep moving forward.
