What is an HRIS and why your business needs one

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What is an HRIS and why your business needs one

HRIS? Deloitte’s 2016 Global Human Capital Trends report indicated digital HR as a key priority, with 74% of survey participants rating it as important to very important. So what is digital HR and how do you choose the right option for your organisation?

As Client Services Coordinator for HR Central, I work predominantly on our Human Resource Information System (HRIS) and would like to share my tips on what to look for when shopping around for an HRIS for your organisation.  It sounds complicated, like you may well need a Computer Science degree – but rest assured you don’t.   And most importantly you will lean about how valuable they are to your business management and success.

Let’s go.

So you’ve been tasked with finding the right HRIS solution for your organisation. You could be a Business Owner, HR Manager, Project Manager, Finance Manager, work in IT or Operations. Your organisation could be from one of the many industries that identify the need for automated process and streamlining your workforce processes. HRIS is industry non-specific. The one objective you all share is the same: to better manage the most important investment in your business – your people.

Even though you may share the same objective, it doesn’t automatically assume your needs for an HRIS are the same. When it comes to satisfying business needs, a One Size Fits All is not the best model. Researching HRIS solutions and assessing what needs of the business will need to be met to choose the right solution for you.

Selecting and implementing a new software solution to the business can be costly – both financially and in workplace change. We recommend the following steps when selecting your HRIS system:

1. Establish the need

Generally you will need to prove a need for Management investment. To establish your need you can ask yourself questions such as:

  •  Will the current software be able to fulfil the future scope of business needs?
  • Why should the business invest in this change? Can you identify/quantify areas where efficiencies and processes can be vastly improved?
  • What is the return on investment to the business?
  • What is the cost to the business of doing nothing, no change?
  • Is your technology supporting an innovative workplace culture?

2. Build your team

Once you have your need you can start to build a team that includes decision makers, end users and field experts to make an educated decision on the HRIS that will be best implemented for your organisation.

3. Make a checklist

Using your carefully selected HRIS team, you can create a checklist to identify the ‘Need to haves’, ‘Want to haves’, ‘Wish to haves’. When creating the list you should consider current and future business strategies, core functionality, organisational capabilities and available resources. Most importantly you should identify how an HRIS should benefit your organisation through improving processes.

Here are some questions to help you in creating a checklist:

  • What current work processes need updating and what should these look like?
  • How many business processes could be automated?
  • How should the new system support the overall needs of the business strategy and objectives?
  • What results do you wish to accomplish with a new system?
  • Which resources are required to maintain the systems?
  • What operating system does it need to run on and how easily

4. Realise it’s an investment

Identifying the financial limits of what you would like to invest in the HRIS is just as important as identifying which business needs the HRIS will have to provide a solution for. In saying that, you should not settle on an application that is in your price range but does not meet your business needs. This is when your investment turns into an expense.

Be sure to research all of the applications that are best suited to your business needs. A good provider will assist you in building a business case that will evaluate required investment against ROI.

5. Get to know HRIS systems

Once you have narrowed down the systems to the most viable option, start investing time in more thorough research of these ones (at least 3 is recommended).

You can use your checklist to ensure your needs are being met.

6. Get to know the provider

An HRIS System is a long term investment that the business will be using for many years to come – so being able to collaborate well with the vendor partner is essential.

Investigate each vendor’s:

  • performance against other companies of similar size and resources (i.e. number of years in business, number of experienced key staff, client and industry base)
  • reputation and track record for providing great systems and service (ask for testimonials, case studies and references)
  • commitment to the HR industry (have they built their system on HR industry knowledge and experience?)

7. Make your decision

Lastly, the final step in the process is to make your decision and start to introduce your new HRIS to your organisation. If the solutions you have investigated, do not meet your requirements, don’t be afraid to go back to the research step and find some other solutions which may be more beneficial to your organisation.

Investing in an HRIS is a big decision and following a process to find the best solution for your organisation will save you time, money and headache. Remember your HRIS should be an investment, not an expense.

If you would like to find out more about HR Central and our HRIS, give us a call on 1300 717 721.

Kiara Jackholme

Kiara is the Client Services Coordinator at HR Central - in other words the "go to" for our clients regarding our HR Software. Kiara sets new clients and users up on the system and expertly trains and educates them so they can navigate their way around in no time! She also manages our Helpdesk function so that any client can contact HR Central directly via telephone or email and know they will be answered promptly. She just basically makes life easier for everyone.

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