What the Heck Is an HRIS and Do I Need One?
You may have heard the news about Paychex making plans to purchase Paycor and wondering about all the fuss. Both companies provide several employer services, including Human Resources Information Systems (HRIS). These systems are a type of software designed to manage and automate various human resource and payroll functions within an organization. It provides a centralized database for managing employee-related data, payroll processing, and benefits administration and it can also include the ability to manage hiring and onboarding.
Large companies use an HRIS system to manage their employee-related administrative tasks. A small company may also benefit from having an HRIS, as they may focus on key business objectives of increasing revenue, providing a high level of employee engagement, and continuing business growth. There are many options to consider that might be the right fit for a small business to help make their processes more efficient.
A few of the benefits of an HRIS are:
- Reduction of Paper and Time-Consuming Administrative Work: Often small companies continue to use paper to provide required information to employees such as paycheck stubs, new hire and separation paperwork, and leave of absence documentation. An HRIS can provide these documents electronically and automatically so the administrative burden of physically filing paper documents is minimized.
- Better Decision-Making: With all employee data centralized and easily accessible, management can generate reports and analytics that support data-driven decision-making. This helps in talent management, workforce planning, and strategic decision-making.
- Enhanced Compliance: Compliance with labor laws and regulations is critical for every organization. An HRIS helps ensure businesses meet regulatory requirements by keeping accurate records, automating tax calculations, and generating compliance reports.
- Improved Employee Experience: Employees benefit from self-service portals that allow them to update personal information, access payroll details, request time off, and more. This empowers employees and reduces the administrative burden on the company.
- Increased Security: HRIS platforms store sensitive employee data in a secure digital environment. Advanced security measures like encryption, access controls, and regular backups help safeguard against data breaches and unauthorized access.
Whether you’re running a small startup or managing a large corporation, implementing an HRIS can help your organization stay organized, compliant, and competitive in today’s business world. Efficiencies will also be found in reporting and data tracking
There are many different options to explore for even the smallest companies and SDHRC has assisted clients with exploring their options while ensuring the company is implementing the most effective and cost-efficient solutions for their business. Making the wrong choice is costly and time-consuming, so let us help! Our team also supports HRIS implementation to ensure the system is utilized to its fullest potential.
