HRIS: 10 ways it can help a Small Business
The implementation of an HRIS could be saving your company a significant amount of time and money by getting rid of calculation errors, making payroll data entry automatic, and enforcing fair pay rules to all employees. Human Resource Information System (HRIS), also called Human Resource Management System (HRMS), provides companies with a high-tech online service center to manage many of their human resource tasks. HRIS is a significant aspect of how HR outsourcing to a PEO will benefit your business.
HRIS can help with benefits administration, compensation management, information analysis, company report writing, and many other HR processes. While HRIS service varies between software companies, one of its most important features is its automation technology, which can make numerous HR tasks simpler, punctual and time-efficient. An HRIS generally provides the following services within its online software:
· Payroll administration and monetary allocation systems
· In-depth reporting capabilities on payroll, benefits, HR and business analysis
· Accounting management and conclusions
· Master employee information database
· Electronic general account books and chart of accounts
· Access for employees to their payroll updates, benefit programs, PTO status, direct deposit accounts and more
· Password-protection, encryption and firewall-monitored security
For small businesses, it can offer the following benefits:
1. Anywhere, Anytime Access: As a web-based HR service system, this solution offers you the flexibility of accessing the program 24/7, from anywhere with internet connection. Managing HR processes will never have been more convenient!
2. Simplify Your HR Tasks By Compiling It All To One Place: Your desks will be neater, files more condensed and life overall easier by streamlining all HR-related administrative duties to one location.
3. Automation Technology: automation technology lets companies enable both customized and pre-set programs, as well as access specification. With automated regular updates, business employers can feel confident that their internal policies, compliance issues and other HR processes will be managed and enforced.
4. Valuable Data Analysis and Report Writing: One of the most useful service HRIS provides is its report writing capabilities. With a company’s information almost all located in one central online system, employers are able to get the insight and answers needed to run a business. It also analyzes its fact-based HR data to provide reports, predictions and metrics to help companies become more competitive and find cost-saving deals.
5. Reduce Employee Fraud: Research claims that businesses typically lose 5% of their revenue to employee fraud and abuse. Wage and hour violations, as well as other various employee fraud situations, can happen to companies of any size, but can be prevented and thus greatly reduced with the implementation of a HRIS. By making many HR tasks such as attendance electronic and automatic, employees have fewer opportunities for instances like buddy punching and charging for false hours.
6. Reduce Human Error In Manual Data Entry: Besides employee fraud, unintentional human misunderstandings, miscalculations and data errors from manual entry can become costly mistakes. This technology will aid in preventing mistakes such as double entries from different departments and other human errors.
7. Increase Employee Convenience: Give your employees a pain-free, easy way to access information and updates on their benefits, compensation and more. HRIS offers a timely and accurate alternative for employees to manage their own HR tasks, such as direct-deposits of their payroll checks to online accounts.
8. More Opportunities For Employer Leadership: A streamlined, automatic system can eliminate the need for employers to deal with much of the tedious HR work. Employers and managers are then able to spend more time working on leadership roles such as projects and employee management for the benefit and growth of the company
9. Time & Cost Efficient: Time-consuming, manual HR tasks such as data entry will be replaced by automation technology with a HRIS. A 2009 survey found that a company spent an average of $28.21 to manually process an expense report, as opposed to $6.19 by a fully automatic and integrated system—a 78% decrease. In addition, the time needed for payroll processing can be reduced by up to 75%.
10. Eliminate Majority of HR Paperwork: With the growing awareness for environmental sustainability, many companies are looking for ways to “go green.” Implementing a HRIS will help reduce almost all of the paperwork associated with HR tasks.
How a PEO Comes Into Play
Why should your company employ a PEO if it’s decided to implement a HRIS? Typically, purchasing and building a HRIS customized to your company requires an exorbitant capital expenditure. With a PEO, a HRIS is oftentimes included within its package services, meaning that the costs of installation, licensing, maintenance and upgrades are included within the PEO price. Many PEOs are also responsible for all technology related duties, for example employing an IT staff, tech support and necessary upgrades. Not only can employing a PEO provide a small business with considerable savings, it can also give them the advantage of receiving the expertise and resources of advanced HRIS programs. PEOs have contract agreements with state-of-the-art HRIS software companies. Smaller companies are able to receive HRIS from major software companies, which wouldn’t be available had they purchased one independently. Hiring a PEO to take care of your Human Resource Information System can provide your company with numerous cost-saving benefits and self-assurance.