If you are using multiple technology platforms to manage the many responsibilities of human resources, you know the struggle is real. Your “system” likely began with payroll software and over time has grown to include other software and platforms to manage various HR functions from benefits administration to compliance-related recordkeeping.
Technology is supposed to make your job easier, but these systems don’t always work well together and often require your team to enter the same data into multiple platforms, creating inefficiencies and an increased risk for errors in important information.
Human Capital Management (HCM) systems or Human Resource Information Systems (HRIS) combine the various functions performed by these different systems into one integrated platform for you to address these challenges giving your team the ability to work more efficiently and effectively while saving you time and money.
Unfortunately for some businesses, an in-house HRIS is cost-prohibitive to purchase and implement because it requires configuration and ongoing maintenance. With evolving technology and HR outsourcing partnership, however, many companies are finding ways to leverage web based HRIS systems for a fraction of the cost (approximately one percent of payroll, on average).
Let’s take a look at a few of the technology challenges that an HRIS can solve for your team.
1. Performing Repetitive HR Tasks
Repeatedly entering the same data into multiple systems for attendance, time off, payroll and performance reviews is time consuming and increases the odds for entry errors. An integrated platform allows you to update information in one location, improving accuracy of information and leaving your team with more time to focus on human resource initiatives like developing effective employee engagement strategies.
2. Running Reporting and Analytics
Running various reports in multiple systems makes it difficult to compare and manipulate data to get the usable information you need to make informed decisions. Manually compiling data can be tedious and time consuming, but with an integrated system, your team will have the flexibility to generate custom reports and analytics based on accurate, real-time information.
3. Securing Sensitive Data
Data and document security continues to be at the forefront of the technology industry and are critical considerations for all of your platforms. Secure login processes and other system security measures result in a daily battle to stem the tide of a breach.
Multiple systems require your team to login to each platform to access information. This can increase the number of opportunities a hacker has to enter your systems and expose your sensitive data. With an HRIS, your team will need to log into only one system, providing a higher degree of security and peace of mind.
4. Managing Multiple Vendors
Each of your systems operates well independently, but they don’t fully integrate into one seamless system. Subsequent upgrades to these systems require time and energy for your team to reintegrate the systems. Not only is this costly in time and IT resources, but you also run the risk of losing valuable data.
An integrated HR system from one vendor eliminates the need to work with multiple systems from multiple vendors for each of your HR functions, saving time and cost and reducing the possibility of data loss between systems.
5. Complying with Regulations
Keeping current on local, state and federal employment regulations is a large task for any company. An integrated HRIS not only contains up-to-date forms such as W-4s, I-9s and OSHA incident reports but also a centralized database for more accurate recordkeeping.
Additionally, partnering with an HR service provider can offer real-time guidance on compliance issues, significantly reducing the chances of costly fines or lawsuits.
Is an HRIS and/or HR Outsourcing Right for You?
An HRIS can undoubtedly improve your company’s efficiency and effectiveness by integrating important functions into one centralized system, but which system is best for you? And should you use an HR outsourcing partner to help you make the most of the technology?
Download the infographic below for a helpful comparison between the benefits of In-House and Outsourced HR and reach out to our team for a complimentary review of your current processes followed by recommendations for custom solutions.
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