5 Reasons Your Business Needs an HRIS

The old way of keeping HR records on paper in folders stuffed in metal file cabinets can be cluttered and take up a lot of space, and as businesses grow year by year, HR functions tend to be more challenging and harder to handle. If your business is still doing this, it might be time for an HRIS. We’re going to go over 5 reasons why you need an HRIS system to simplify your HR so you can get back to focusing on your business.

What is an HRIS?

HRIS or a Human Resource Information System is an HR software technology that handles HR functions, payroll, accounting, and management in an automated fashion. HRIS combined with an expert HR service will save your business countless hours each week by simplifying these HR functions, allowing you to focus on your customers and growing your business.

1. Information Simplified

When employees spend time searching across email inboxes, Excel spreadsheets, file shares, and other departmental applications, it adds unneeded stress and lessens their productivity and satisfaction. Information scattered in different databases may easily get lost, misplaced or hard to find as they are not found in one centralized system. An HRIS is effective in saving time and effort during the usual switch between multiple systems, handling paperwork and getting managers’ approvals.

2. Frequent errors and non-compliance issues

The traditional HR process requires human supervision and intervention. But this could also mean a big possibility of human error which can lead to non-compliance with laws and regulations. Such issues that involve employees’ benefits, compensation, equity, and training can land your business in hot water. With an HR software, the cost in lawsuits will be avoided as the technology keeps all the data and information accurately and up-to-date in one central location.

3. Employee data

HR tasks such as employee hiring and leave, attendance, performance, benefits and payroll can involve piles of documents for managers and constant follow-up approvals. This time consuming process slows HR functions and ultimately affects the workforce as a whole. But with the technology of an HRIS system, it can provide an online location for employees to access relevant information that can be tracked by managers automatically. Employees can easily make paperless requests which are received by managers via automated reminders. Employees can also check their payroll, benefits, and leaves in the system, as well as enter their time in and out and completed tasks. Managers, in turn, can input employee performance reviews in the all-in-one system.

4. Less Time Spent on Redundant Tasks

Printing and distributing announcements and company policies in paper or file shares is normal and acceptable for a small business. But when it’s growing, all that printing not only adds up, but is harmful for the environment. Repetitive and tedious tasks will be eliminated in the HRIS technology since it provides a paperless and centralized location of all information for employees and managers to access. In addition, the data is presented in a simplified way that allows an easy and accurate creation of reports and analysis and strategic decision-making.

5. Employee Training

Employee training is necessary for any business, and is important for keeping employees up to date on new changes or tasks. When training needs to be implemented for employees who are slowing down workflow, HR has to step in and tackle the issues manually, which generates reports that can be time consuming, further impeding on workflow. The unique functionality of HRIS system to track and analyze data can let a business determine appropriate employee programs that surround talent management, training development, employee engagement and performance management and recognition. When that’s all done, HR can focus on empowering employees with helpful programs that are designed to reflect the growth of the business. As your business is evolving with changing employee needs, it is also a good time to consider having an HRIS that is an investment for the future and success of your business.