There’s a reason that well over half of all small businesses and nearly all larger ones use a human resource information system (HRIS) of some kind. Few things can benefit your organization quite like a HRIS. While most smaller organizations rely solely on payroll solutions, there are a wide range of other HR functions that a HRIS can streamline.
Knowing when to invest in an HRIS solution can be easier than you might think—there are clear signs that it’s time to upgrade. Here are five of them.
For a foundation on how HR technology supports organizational goals, see What is Human Resource Management?.
1. HR Overload
If your HR team has been showing signs of decreased productivity, a HRIS may be just what the doctor ordered. The HR department handles more tasks than most people realize, and automating or simplifying some of those tasks with a HRIS is the best way to help them get out from beneath the mountain of redundant, non-strategic duties. This allows them to focus on more pressing, strategic issues.
If you’ve noticed that your HR staff seem overworked or burnt out lately, you probably need to consider a HRIS. This ties into the Characteristics of HRM that Make All the Difference, where efficiency and employee well-being are at the center.
2. Benefit Craziness
Employees love their benefits—so much so that a recent survey revealed over 90% said they’d look for a new job if they lost them. But that love for benefits could create a real need for a HRIS.
If you’re noticing a constant influx of benefit-related inquiries to your HR department, a HRIS that automates benefit enrollment might be needed. This not only helps your HR team manage their workload but also boosts employee morale.
3. Errors and Noncompliance
Errors can cost your business serious money. Noncompliance with laws like the ADA, FLSA, and FMLA can be even more expensive. If you start to see an increase in mistakes—whether it’s missing new-hire paperwork or forgetting a payroll calculation—an HRIS could be needed.
Since a HRIS uses fail-safe measures and automation, the frequency of errors and compliance issues can decrease dramatically. In many cases, a HRIS could literally save your company from major legal or financial trouble. For professionals aiming to deepen their compliance knowledge, certifications such as PHR or GPHR can also be valuable.
4. Costs You Can’t Find
One of the greatest things about a HRIS is its unique functionality to track data. If you start noticing that your organization is losing cash quickly, using HR metrics provided by a HRIS can help you identify just what aspects of your organization are costing you the most. This aspect of a HRIS can let you create strategies for your business’ future.
5. You Think It Is
Simply put, if you think it’s time to add a HRIS, there’s a good bet it probably is. You’ve led your organization to its current point with skill and instinct and there’s no reason not to trust your gut now. If you understand all that a HRIS can do for your organization and feel it’s time to make the investment—the odds are that you’re right.
Final Thoughts
A HRIS is more than just a tool—it’s a catalyst for efficiency, compliance, and growth. Whether your HR team is overloaded, struggling with benefits management, facing compliance challenges, or simply needs better visibility into costs, the signs are clear. Investing in a HRIS can transform your HR department into a more strategic partner within the organization.
FAQs on HRIS
What does a HRIS do for small businesses?
A HRIS automates HR tasks such as payroll, benefits, compliance, and employee data management, giving smaller businesses the same efficiency advantages that large organizations enjoy.
How do you know which HRIS is right for your company?
Start by identifying your organization’s biggest HR pain points. If compliance is your challenge, choose a system with strong regulatory support. If benefits are the issue, look for robust benefits administration features.
