What are HRIS systems?
A human resources information system (HRIS) is a software solution that collects, stores and maintains employee data and automates HR procedures.
It eliminates the need for outdated paper-based processes and clunky, manual operations by bringing everything together in one platform.
An HRIS not only facilitates accurate record-keeping and reporting but also creates a seamless line of communication between those looking after HR and employees.
7 benefits of HRIS systems
1. Safeguard confidential data.
Without a dedicated HRIS, there’s a good chance you’re juggling data in a number of places.
You’ve probably got a handful of email threads, Excel spreadsheets and task management apps full of patchy information.
Not only are many of these sources insecure, but storing your data in multiple places makes it difficult to track.
An HRIS keeps all data in one central place that’s easy to keep up to date.
If the HRIS is cloud-hosted, you can also access this information on the go rather than waiting until you’re back in the office.
2. Improve efficiency and productivity.
Switching between different software and file formats is time-consuming and leaves room for human error.
The best HRIS systems free up employee time and dramatically reduce the number of hours spent on low-value tasks.
As a result, employees have more time to dedicate to strategic initiatives and high-value activities.
The right software solutions can help you scale your business without needing to put on additional staff.
3. Enable more strategic decision-making
An HRIS provides valuable data that managers can use to make informed decisions.
Having every piece of data in one place means you can generate reports with ease, allowing staff to focus on analysis and forecasting rather than sourcing data to manually compile reports.
Ultimately, this approach leads to quicker, smarter decision making.
4. Eliminate paper records.
An HRIS stores records and automates key HR workflows to reduce the amount of manual effort and paperwork.
Teams can handle payroll, staff training and development, recruitment and other activities from one place, which reduces waste and streamlines processes.
5. Enhance employee experience.
The best HRIS systems give employees autonomy to manage their own personal details.
Staff can add holiday dates, track progress and access training opportunities from one place without wrangling endless spreadsheets or having to rely on others.
The self-service nature of an HRIS means employees can take control of their employee experience.
6. Save money.
An HRIS digitises employee information and stores it digitally.
By moving away from paper-based processes, businesses can become more efficient and reduce expenditure on office supplies, like paper, toner and storage solutions.
By saving time, businesses can also save money by becoming more productive.
7. Comply with state and federal regulations.
Remaining compliant with the latest legislation, labour laws, tax and reporting requirements is a non-negotiable for business.
With automated updates and calculations, an HRIS avoids human error and omissions, ensuring your business remains fully compliant.
HRIS systems: 6 implementation challenges
Cost
Setting up a fully functioning HRIS comes with costs.
Make sure you have a thorough understanding of all the costs involved — from the cost of ownership to implementation, integration and support — so you don’t run out of budget before you can reap the benefits.
Team buy-in
It can be difficult to get the go-ahead from senior management and other stakeholders — especially if they’re one step removed from the problem.
There might be pushback from business owners and operators who are hesitant to invest in a single system or who prefer old-fashioned paper processes.
Tackle this challenge by building a business case for an HRIS.
Goal setting
Even the most sophisticated HRIS will not deliver the right results if you don’t have clear objectives from the start.
Rushing into the setup without thinking about what your business needs are is a recipe for disaster.
Assemble a project team for the HRIS who understand exactly what the system needs to do.
Organisational change management (OCM)
There’s more to implementing an HRIS than setting up the software.
You also have to convince employees to change their processes and learn a new technology.
Organisational change management uses a people-centred perspective to guide the transition, providing employees with the information they need to not only use the software but to understand why it’s necessary in the first place.
Consider explaining why an HRIS is necessary and how it will benefit employees.
If you can, focus on specific outcomes, like the number of hours it saves or how it automates repetitive processes.
Timelines
One of the key benefits of an HRIS is the automation of various HR procedures, saving time and brainpower.
But getting to that point requires some effort, identifying processes and optimising them so you’re not trying to automate a bad process.
Training
An HRIS works best when the whole company uses it.
Each and every employee can benefit from easy collaboration, data management and automated processes, but there’s a learning curve.
Think about everything a manager might use the software for, such as checking time and attendance, conducting performance management and following employee development.
Then think about employees and their use cases, like tracking time off, booking appointments and logging expenses.
You need to train staff on each process to make the best use of the HRIS.
When employees have the knowledge to collaborate seamlessly and incorporate the software into their daily to-do list, they have more time to focus on high-value work.
Manage employees with MYOB
MYOB is a business management platform that caters for a business’ 6 core workflows: Employees, Projects, Customers, Suppliers, Finance, Accounting and Tax.
With MYOB, you can have the HRIS that’s right for you without having to pay for features and functionality that you don’t want or need.
For example, you can start with payroll only and add on workforce management capabilities as your business grows.
Built in the cloud, you pay for what you need today but can scale your platform and add on new modules and capabilities across all 6 workflows as your requirements change.
Lighten the load of managing employees and run your entire business off one integrated platform. At MYOB, we have you covered.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.