Many small businesses have a tendency to steer clear of conversations involving acquiring an HRIS, or Human Resources Information System. By definition, small businesses generally have few employees, so the owners of small businesses often believe the costs of implementing an HRIS would be greater than the gains. In some cases, this may be true.
Every small business is different, however, and some could stand to benefit a great deal from an HRIS. The following questions may help you to assess whether your small business would benefit from an HRIS.
Are Employee Information Errors Common?
If errors are often found in employee information, an HRIS could be beneficial. HRIS solutions usually come with features that allow employees to enter their own information and then transfer the information into all of the necessary areas. This eliminates the need for dual information entry and minimizes the potential for human error.
Do You Have Concerns Surrounding Compliance?
It can be tough for small businesses to keep up with complex and changing laws regarding employee information, work hours, and benefits. Most HRIS come with functionality that automatically captures needed information for compliance reporting and provides information about applicable laws. This can save tons of time and eliminate worries about penalties.
Are Your HR Professionals or Managers Stretched Thin?
Most small businesses operate with a very small HR department or no HR personnel at all. When all of the employee information must be filed manually, onboarding and hiring is being done manually, and employee issues still have to be handled, it can become difficult for HR staff or managers to keep up. An HRIS can help to take some of the burden off by automating certain tasks.
Are there Difficulties with Tracking Time and Attendance?
Time and attendance tracking is necessary for most businesses, but the optimal way to track it may vary. If employees are often on the move, an HRIS with mobile functionality may help log all employee hours, no matter where they may be when they “clock in.” HR software that is integrated with payroll may also help to eliminate errors and streamline payroll processes.
Do Your Employees Have to Wait for HR Answers?
Inevitably, employees will have questions about their information, benefits, hours, vacation time, requests off, and other issues. When employees have to wait for HR staff or managers to get around to answering these questions, it can become frustrating for the employees and time consuming for the managers or HR professionals. HRIS solutions often come standard with self service portals, which allow employees to find their own answers. Additionally, HRIS solutions may provide libraries of information about company history, vision, and values.
If you answered yes to most or all of these questions, an HRIS may provide real value to your business. The costs of acquisition and implementation may be deflected by the amount of labor hours that you will save and the potential cost savings on penalties and internal errors. Additionally, you may see improvements in company culture and productivity as your employees enjoy greater autonomy and your managers or HR staff members are freed from mundane daily tasks.