The right HRIS has the power to completely change the way you work. They organize and strategize simultaneously, helping you better manage your employees without resorting to multiple third-party systems for hiring, benefits, payroll, and other necessary functions.
Whether you’re a small company or a multinational organization, a human resources information system can streamline one of your most valuable resources—the enormous amount of people data available to your company. Not only is this necessary for basic tracking and information keeping, but this also helps you to focus your time on more strategic initiatives, employee engagement, and regulatory compliance.
A robust HRIS is no longer a ‘nice to have. It’s a critical piece of software necessary to keep pace in the current business world. Organizations are under constant pressure to streamline HR processes, improve access to data for employees and managers, and compete more effectively for global talent. So how exactly does an organization benefit from implementing an HRIS? Let’s take a look.
Boost productivity and operational effectiveness
Gone are the days of painstakingly copying employee data from one system to another. An HRIS can boost operational effectiveness by automating recurring tasks and designing workflows. Human resources administrators save time and no longer have to chase people down to fill out forms, leading to increased efficiency and speed.
HRIS functionalities such as org charts and self-service modules empower employees to operate effectively. As a high-level, interactive database, Org charts give everyone at the company an overview of who does what.
This, in turn, streamlines decision-making processes and aids collaboration on cross-functional initiatives. Other programs, such as compliance training and self-service time management, empower managers by giving them more oversight and promoting healthier work-life balance on their teams.
Improve the employee experience
One way to show employees how much they are valued is by empowering them with their own information. As consumer technology advances, it’s imperative to ensure that employees are also satisfied with the systems available to navigate personal information, compensation, benefits, and performance. An HRIS helps ensure their data is always up to date, minimizing the risk of confusion or delays.
A user-friendly HRIS can also improve the employee experience during the candidate lifecycle. In this day and age of employer branding, organizations can make a great first impression if the application and hiring process runs smoothly. This also helps build trust between interested candidates and their potential employers.
Additional features such as performance and learning management support employees in their own career advancement. Performance and development, another critical factor in the employee experience, is aided by implementing an HRIS.
The system can help employees better manage their careers through frequent reviews, feedback, development plans, and learning tracks. Organizations can also use this data to create succession plans and career paths, thereby helping their employees feel cared for and valued.
Make better decisions
Another great benefit of an HRIS is that it empowers organizations to make better decisions.
One way this might work is through HRIS reporting, which empowers teams and managers by giving them relevant insights into their people. When your people team doesn’t have to dedicate as much time to administrative tasks, they can put more energy into analyzing and furthering strategic initiatives.
Reports on attrition rates and average hiring times provide deep insight into any talent gaps present on a team. In addition, reports on performance and development can help managers identify top performers and reward them accordingly or weaker performers to help them get up to speed. The ability to provide key insights efficiently will help solidify the credibility of HR with the organization and place them as valuable decision-makers.
Improve regulatory compliance
Compliance, while mundane, is necessary for organizations of all sizes. Using an HRIS, people data is stored in one centralized location so you no longer run the risk of misplacing or throwing out essential documents.
An HRIS also helps you document performance and compensation information to minimize pay gaps, set clear expectations, and share key information. It also ensures that people are up to date with GDPR compliance, data retention, right-to-work certifications, and health and workplace safety training.
Finally, an HRIS helps your organization save money. While it does require an initial investment, most organizations use their HRIS for at least eight years. During this time, the payoffs include increased time and energy towards tasks that help grow the business and make better decisions. Stronger record keeping and process automation also allow companies to reduce staffing costs or allocate staff to different projects. Better data accuracy also translates to less costly mistakes. It’s a win-win for all.
Regardless of your industry, a strong HR process helps you reach your business goals more quickly and efficiently. The right system will help your teams work smarter and empower them with strategic insights to help key company decision-makers.
Adi Janowitz is VP of Customer Success at Hibob. Adi has vast experience in building and leading Customer Success organizations in SaaS companies. In her recent role, she re-built the EMEA CS department at WalkMe. Prior to that, she built the Idomoo global CS org from the ground up. Adi’s focus is on boosting retention by building a scalable KPI-driven CS organization while creating KPI coherency for the entire company.