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HRIS: Its Purpose, Benefits, and Choosing One for Your Needs

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Enable Group | May 31, 2023

For Employers ● 4 min read

The recent pandemic took a toll on the entire workforce, and when it comes to HR, that meant tackling new and shifting responsibilities, such as feeling the need to be “on call” at all times and recruiting in an ever-changing job market. On top of this added complexity and stress, around 73% of HR professionals claim they do not have the things they need to perform well.

This is where a Human Resource Information System (HRIS) comes in to provide relief. These systems help businesses track, organise, and report on key employee data across various HR functions such as hiring and onboarding, payroll, performance management, and employee management. Below, we take a quick look at what an HRIS is, what makes it useful for companies, and tips on choosing one that suits your business needs.

An Overview of HRIS

An HRIS is a database that allows your organisation to track, organise, and manage crucial details about your workforce, from their basic information to the benefits they are entitled to, time-off requests and balances, compensation, and much more.

What makes an HRIS so powerful is that they provide a single source of accurate data on all employees across the organisation. That said, not all of these systems are created equal, as their features may vary widely from one solution to another. This stems from the fact that the HRIS spectrum is wide and comes with many options to choose from, enabling you to choose the best one according to your data complexity, business needs, and growth goals.

More advanced HRIS solutions go beyond just data tracking and have in-depth reporting capabilities that let HR teams better understand and shape the employee experience.

Core Benefits of Adopting an HRIS

  • More accessible data

Organisations that use an HRIS will no longer have to go through the hassle of manually combing through physical spreadsheets and filing cabinets and entering data in multiple systems. And since all employee data is located in a single source, it becomes easier to collect, track, update, and search for the information needed at any time.

  • Assured compliance

Reputable HRIS and payroll HR software vendors stay on top of important regulations impacting HR teams, such as GDPR, so their clients can confidently and easily meet their compliance requirements.

  • Improved employee experience

From a pleasant and effective onboarding process to simple time-off requests, having an HRIS that provides a hassle-free interaction substantially improves the overall experience of your employees.

  • Leverage impactful reporting

An HRIS can aid in pulling the data that corresponds with your business objectives and goals when reporting on HR performance to upper management. Sharing timely and accurate data from across the company—such as critical metrics like employee engagement—lets executives buy more into HR initiatives and reach meaningful and strategic decisions.

Tips on Choosing an HRIS

1. Consider your growth trajectory

When deciding on an HRIS to use, your employee count is the first and most important factor to consider. Since different HRIS solutions cater to different company sizes, go for the option that meets your needs today and where you intend to grow in the future. For example, a basic HRIS will suffice for most SMBs that typically only need the essentials like payroll functions, managing employee data, and processing time-off requests. These basic systems come at a lower cost and are easy to use regardless of whether you have a proper HR team or not.

2. Determine how an HRIS can integrate into your IT stack

Next, list which of your other business tools needs to send or receive data from the HRIS. Some questions to guide you are:

  • Which, if any, of your existing tools will the new HRIS be replacing?
  • Will other departments need data from the HRIS?
  • How comprehensive is the vendor’s integration support?

Depending on your business’s unique needs and the HRIS you chose, integrations will vary widely from one company to another. Some vendors may offer pre-built integrations with popular HR systems, while others may accept custom integration requests, which will inherently be more expensive and time-consuming.

In short, choose a vendor that has a step-by-step integration process for their HRIS products and provides you with a dedicated, always-available support team to help with any issues that may arise.

3. Increase adoption by building and deploying roll-out plans

Despite the often-high initial cost, there is no doubt about the importance of adopting an HRIS. Moreover, the rewards and ROI of committing to one far outweigh the initial setup and adjustment hiccups. To get the most out of your HRIS, consider doing the following:

  • Develop a roll-out plan that includes training on how to use the system to familiarise employees with the HRIS’s capabilities and what to expect from it.
  • Make another plan for migrating data into the HRIS that considers the needs of the different teams in your business.
  • Rely on your HRIS vendor for any difficulties or issues that may arise; it is their duty to help you reach your HR goals.

Conclusion

Deciding on an HRIS is something that should never be taken lightly. By taking the time and effort to choose the right system, leaders can take a big step towards fixing their company’s biggest problems and empower their HR staff to make a significant impact on the business.

If you are looking for the best HRIS and HR software tools that best suit your organisation, look no further than Enable Consulting. As one of the premier providers of human resource management services in Singapore, you can rely on our highly praised HR services like HR software, HR advisory, HR consulting, and HR outsourcing that deliver the outstanding results you expect.

Feel free to reach out to us at any time for more details about our HR software solutions and services and how we can improve your HR functions.


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