One of the most valuable benefits of HR software is the fact that it helps organizations efficiently and effectively complete administrative and operational tasks, focus more time and energy on linking human resource strategy with organizational mission and the work of people in the organization. HRIS furthers the strategic focus on present-day human resource management and it matters to what HR leaders do.
Challenges of human resource management
The organization of employees workflow includes a bunch of processes and activities conducted by HR manages. So, what actually do HR specialists do? Here are only a few things a typical manager does:
- Carries out job analysis
- Plans employees needs
- Searches for new workers and recruits people
- Manages salaries
- Provides consulting and training to the personnel
- Resolves arising problems and conflicts
- Evaluates productivity
- Collaborates with all workers
Here is a chart demonstrating the major roles of HR specialists in an organization:
A good HR manager motivates and enables employees to commit enough efforts and time to the projects.
Due to a great number of activities and responsibilities HR managers have, they are currently facing a bunch of challenges.
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Recruiting talented employees
Human resources expert should possess good knowledge of the industry. This ability along with strong communication skills help HR managers analyze various job positions and make out a list of responsibilities, skills, and requirements. Professional managers must be ready to discuss a job role with other employees, to learn the details, to explore the intricacies of the job, etc.
Depending on the job requirements and business aspects the recruiters should know how and where they can attract the best specialists. Finding the right people means that HR managers won’t spend time on the screening procedure.
Adapting to changes
With a fast-paced evolution of technologies, the needs of businesses change rapidly. People working in different industries have to adapt to these changes, brush up on their skills, and learn new things. Meeting the unknown new changes is stressful for the majority of humans. That’s why HR managers should be ready to help people accommodate themselves to the new conditions.
Team leaders can help greatly human resources specialists run their teams and teach others how to adapt to the changes mentioned above. However, it’s quite difficult to hold a true leader from leaving. Due to an appealing modern workforce environment, a lot of leaders quit their jobs accepting new positions. The reason why leaders could quit their jobs is a poor and unclear career progression path.
Providing development opportunities
Company owners together with HR departments should work out useful training plans for their employees. To keep people motivated the training programs must be engaging and practicable. Today’s continuous learning programs are rather flexible and interesting so that your employees can study at the time that is convenient to them.
Outsourcing and diversity at workplace
It’s no longer a problem to scale your team even if you can’t find a required resource in your country. Farming out the projects to remote employees is a typical thing nowadays. Along with a bunch of advantages, outsourcing brings to businessmen, there are also some disadvantages related to the diversity of cultures, nationalities, and mindset at the workplace. All these aspects should be managed by true professionals who can resolve the conflicts, unite people and build a team.
Types of human resource management
To meet all challenges HR experts are occupied with lots of activities that determine the type of human resources management. Here are the main types of HR jobs:
Selecting the right candidates is of core responsibilities of recruiters and HR managers. The latter develop accurate job descriptions based on the skills and expertise that fit the company’s or project’s goals.
The healthy atmosphere at a workplace is very important for ensuring high productivity and meeting the deadlines. Managers that run both in-house and remote employees should be able to resolve the conflicts and other arising problems on the fly. They also should manage employee-employer communication in order to establish strong relationships between top management positions and employees.
Health issues include the following things: compliance with government occupational regulations, development of safety programs, prevention of illnesses and accidents, etc. These issues are also controlled by HR specialists.
Benefits and compensation
Benefits and compensation management is another type of HR jobs. Expert managers monitor and check if the workers are paid accordingly.
Training specialists evaluate, analyze, and develop training programs and strategies for employees. They also assess the results of the programs taken, how they affect the entire workflow and productivity.
What HR tools do you need?
Tool 1 – HRIS
Piles of paperwork and spreadsheets to measure productivity and monitor the workflow were some years ago the
major tools HR leaders used to run the employees. Today the spreadsheets are not so widely used. Instead, companies of different sizes began to implement and utilize modern HRIS (human resource information systems). These systems are easy and flexible to run. You can store all data related to the employees in one place.
Tool 2 – Benefits management
Benefits are things that engage employees mostly along with competitive salary and work. Benefits may include commuter, health insurance, wellness, disability, etc. All these things are difficult to organize by keeping a bunch of paper files. Benefits administration tools help experts process the information accurately and on time.
Tool 3 – Payrolls
Payroll administration tools help manage the information about people employed by a company and the total amount of money paid to these people. Digital systems facilitate correct efficient reporting and track of payroll as well as simplify the taxes filing.
Tool 4 – ATS
The hiring process may take the time from several days to a month. HR specialists look through hundreds of resumes and CVs to find the right candidates for the next stages of the hiring procedure. ATS (applicant tracking system) can help you scan and filter the papers accordingly thanks to the particular keywords that you consider to be the most important in making a decision on how good your candidate fits the job.
Tool 5 – LMS
Learning opportunities can also engage employees to work more efficiently that’s why a lot of companies provide their workers with e-courses and other online learning technologies. To control and track the progress of the students HR leaders use LMS (learning management system) that shows the entire learning progress, notes, and records of every single employee enrolled in the courses.
Types of HRIS systems software
What is actually a human resource information system? It refers to the systems and processes that have an intersection between human resources management (HRM) and information technology. It merges an HRM as a discipline and in particular its basic HR activities and processes within the information technology field and programming of data processing. The system has evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin in software that integrates the information from different applications into one universal database. The linkage of its financial and human resource documentation through one database is the most important distinction which makes this software application both rigid and flexible to use. Currently, HRIS systems encompass:
- Work time
- Benefits administration
- HR management
- Recruiting and learning management
- Performance records
- Employee soft service
Simply put, a human resource database management system is a software solution that is used for data entry, data tracking and the data management of people employed by an organization. These systems run on a database and allow users to enter information without having to know a database structure. There are many acronyms that people use for HRIS systems:
HRMS – human resource management system
HCMS – human capital management software
HRIMS – human resource information management system
There are 3 primary roles HRM plays. The strategic function is the most important followed by the operational and administrative role. The evolution has been supported by the increased use and an availability of strong human resource technology or HRIS to help us reduce the burden of that third administrative role.
To understand the key role that human resource technology plays you need to understand data, information, and knowledge in organizations.
Data is critical to an organization. It represents the facts of transactions that occur on a daily basis. A transaction should be thought of as an event of a consequence such as hiring a new employee for a particular position and specified salary. Your organization tries to capture the data or the facts associated with each of these transitions such as the day hired and to store this data for future use. The maintenance of data is central to the smooth operation of every part of an organization.
Information on the other hand is the interpretation of data that always has some goal and context such as making the hiring decision for a particular department or understanding the performance of the employee to make a promotional decision. Often we must do additional work like calculating or presenting the data in some other order that turns the data into information that can answer the important questions.
Knowledge is information that’s been given meaning where data and information are about the what and the why. Knowledge is about how. We use data and information to form knowledge, make strategic decisions.
HCM vs HRIS: Is there any difference?
There is a slight difference between these two notions as both could include the same processes. Various vendors and companies treat these terms differently. Here is a table that can help you understand the essential differences:
How to choose the best human resource management apps?
Here are some tips and tricks that can help you pick up the best app:
- Purchase the product of its type for a particular functional human resource management needs.
- Purchase software from different vendors to obtain the best of breed for the application area. For example, an HR package from one vendor and an accounting package from another.
- Enterprise vendors provide integrated applications for the entire organization as one system.
- Order custom development if your needs and requirements are specific.
Data integrity of employee management software
Data integrity refers to maintaining and assuring the accuracy and consistency of data. The overall intent of data integrity is to ensure the data is recorded exactly as intended in your system. Integrity must be ensured through proper system maintenance. The primary objective of maintaining data is to prolong the useful life of your HRIS.
The quality of every HRIS is determined by the correctness of the data entered into the system. Bad data will resolve the failure of reporting, information, and knowledge.
How to determine the benefits of web-based HRIS?
The benefits are where you’ll put all of the reasons supporting your business case, even if you can’t quantify them.
- Reduce expenditures – this represents savings resulting in saving hard dollar costs. Example: By reducing manual effort and errors, you will save 3-4% in costs per year.
- Increase productivity (soft dollars) – this represents the time spent performing your job. Example: Productivity savings from HR administration will result in a 30% reduction in time spent on manual activities enabling the ability to better support management in dealing with HR issues and opportunities.
- Increase effectiveness – state how processes will improve with this initiative. Example: by automating performance appraisals you expect to ensure all employees to receive reviews in a timely and consistent manner.
- Or more efficient decision-making with regards to budgeting by accurately knowing the headcount, etc.
- Increased morale – describe how this system will increase morale.
- Increased data or decision quality – state how data will be more accurate. Example: We will be able to produce a headcount report in one day rather than 3 days it currently takes.
- Increased process compliance – state what processes you will be able to improve. Example: We will be able to better track and report on lost time incidents and costs.
Top benefits of web-based and open-source human resource management system
The cost savings associated with a web-based management system reaches into many areas of business. The savings can be defined and measured. Consequently, it is possible to realize a quick return on your HRIS investment. Usually in less than six months. This is made possible with the SaaS or cloud deployment of web-based HRIS than enable rapid and easy implementation with no upfront capital outlay to recover. The positive impact on the bottom line is then enjoyed within a few months from starting.
Alternatively to not have an appropriate web-based HRIS in use means your organization is losing money every month. e-HRIS positively impacts the bottom line through:
- Increased productivity. The time and effort saved through enhanced efficiency and the reduction of routine administration and elimination of duplicate data entry.
- Drive costs out of your business by automating core HR and payroll processes for increased efficiency and productivity.
- Increase retention by providing a high level of service to employees while controlling the cost of providing it.
- Make the best possible decisions regarding your workforce with accurate, timely reporting and analysis.
- Reduce the cost of compliance and risks associated with increasingly complex and burdensome regulations, including the avoidance of fines, penalties, and costly litigation.
- Improve processes for recruiting, developing, and retaining people with the required skills and aptitudes to meet current and future organizational needs.
- Reduce routine administration and paperwork, enabling you to focus more on workforce and business strategy.
- More strategic opportunity – the better alignment of HR and corporate objectives, achieved by your staff having more time to focus on what matters most.
e-HRIS frees your HR staff to focus on strategic objectives. The time saved with an e-HRIS will enable your staff to deliver higher levels of service to employees. You’ll benefit from timely reports that help you forecast and plan for an optimized workforce. And smooth, efficient processes allow HR to spend more time focusing on strategies that secure the long-term success of the organization.
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Well-known HRIS systems list
So, whether you have made up your mind to choose a ready HRIS solution or to develop a custom-designed software, you should check out this HRM software list to know the main features and functions of these products.
Most popular HRIS systems
- Zoho People is ranked as the best management tool in 2015. It is a clear system that allows HR specialists to manage records, time tracking, and other employees data in different organizations.
- BambooHR was called the best HR software of 2017. This platform is intended to serve S&M companies.
- Gusto is aimed to manage human resources capital. It has all the necessary features and options for providing effective onboarding and productivity management.
- Zoho Recruit won the Customers’ Choice Award in 2016. The system is a cloud solution with a set of useful recruitment tools, easily customizable and flexible to the client’s needs.
- iCIMS Talent Acquisition is an HR package that offers a bunch of social, video, and mobile technologies to run the employees.
- BizMerlin was ranked as a rising star company in 2016 for its HR solution for S&M businesses. The software allows managers to recruit, onboard, run, and allocate employees.
- Trakstar – an online system that has a great pack of options for reviews and feedback management.
- OnPay offers the newest technologies for payroll management. The platform’s pricing plan is reasonable compared to the traditional payroll services.
- Freshteam is a pack of recruitments and applicant tracking tools that are easy to use.
- ClearCompany is a software that offers tools for search, hire, and management of employees.
Important features that make a good HRIS
The most important step in any search for an HRIS is to establish your company’s needs. Every company is different requiring appropriate HRIS software modules. It’s critical to define what the most important HRMS features are for your team. Make sure that the system you license accommodates these needs. These should include not only your current but also your future needs.
You should think about scalability to ensure you find a system that your company won’t outgrow. Most companies want core functionality that includes employee information, compensation, workforce management, benefits administration, self-service and other HR functional areas. Companies that want to use their HRIS more strategically will look for the advanced functionality such as training and development, succession planning, reporting and tailoring tools. As you define your company’s needs, it’s a good idea to develop a checklist, which you can use when assessing different systems.
HR system modules list: Check if your solution works perfectly for you
- Every good HRIS should cover core HR data
- Core employee information—personal information, emergency contact
- Job, pay, and status information
- Employee qualifications and competencies
- Salary administration
- Benefits administration
- Absence tracking
- Standard reporting
The great HR systems go beyond core HR data with cutting-edge features and functionality that make HR an integral part of your company’s strategy.
- Applicant tracking
- Training and development administration
- Succession planning
- Knowledgeable and timely system support
- Flexible report-writing tools
- Front-end customization tools
- Intuitive user interface
- Integrated talent-management functionality
- ERP HR module training
- Automated open enrollment
- Employee data history tracking. Workflow and routing capabilities
With a fully integrated HRIS, you can track, manage and analyze data for all your employees from an applicant to retiree. By automating HR workflow, an HRIS enables you to do more in less time, freeing you up for other activities.
- Self-service—for applicants, employees, and managers
- Paperless routing and approval
- Quick data-entry tasks
- Alerts for date-based events
- Tailoring tools—for users to customize the system
- Electronic signatures
How to choose a reliable HR ERP solutions provider for your enterprise?
- A number of years in business
- Main business focus (i.e., HR only, payroll, enterprise systems)
- A number of key staff members with prior HR experience and their roles within the organization
- Avenues for selling the HRIS (i.e., internal or outsourced)
- Opportunities for service support (i.e., internal or outsourced)
- The selection of HRIS
- Duration of implementation
- A number of full-time employees involved in development, support, marketing, sales and corporate administration
- Avenue for handling hot-line support calls and typical response times
- Business partners and how they enhance the vendor’s offerings
- Technology operating environment (i.e., Microsoft, Oracle, IBM/DB2, etc.)
- The scope of clients the vendor serves
- Type and size of clients
- Client base by industry sector
- Number of clients that have licensed the system and how many of the clients are active
- A number of new clients acquired in the past 2 years
- A number of clients on active maintenance plans
- Reasons for losing clients
What is important about payroll and HR software development?
The question about the usage of combined HR and payroll modules or using these separately leads to lots of debates. In most companies, HR modules play an administrative role whereas payroll modules are used by the financial departments for accounting functions.
No matter, how your company is structures, payroll and HR modules are interconnected. That’s why payroll software developers could offer you to develop an integrated system that will provide an interface between both modules. Each department should choose the solution that best meets its needs. If you choose two systems from different providers, the interface should be affordable and effective.
Choosing the right HRIS for your organization is a challenging task requiring a certain budget, time commitment, and buy-in from your executive staff. Most organizations conduct their own research on which HRIS would be right for them. While some companies only use HR or the executive team in the decision, a much more comprehensive approach uses all key personnel affected by the choice.
A common practice is to create an ad-hoc group made up of HR experts, executives, managers, and IT specialists. HR will be the major users – they should ensure the system meets the company’s needs. Executives will finally approve their choice. Managers should weigh in on whether they’ll be able to learn and use the system easily, while IT team can comment on technical specifications, tech preferences and licensed or SaaS options. Regardless of whom you involve in the system assessment process, human resource leads must own the decision and implementation.
General recommendations from DICEUS
HR systems are not disposable software. In fact, most companies use their HR systems for 5-10 years. When you license a system, you’re not simply choosing a piece of software; you’re choosing a vendor partner to help you achieve your goals over the next decade. The vendor is an important piece of the puzzle when selecting an HRIS. You should consider the vendor’s commitment to the HR industry, time in business, reputation, and track record for providing quality systems and services. It’s also good to evaluate the vendor’s experience with companies similar in size and in the same type of industry as yours. Commitment to the HR industry is critical—only companies knowledgeable in HR can design a system to satisfy your HR needs. It’s also vital that development, sales, implementation, and system services come through the same organization.
If the vendor develops its own systems, you can hold the company accountable for upgrades and enhancements. Likewise, if the organization that developed the system is also the one servicing it – not a third party – you’re more likely to receive knowledgeable, efficient service and faster call-back on system-support questions. You might consider discussing the implementation process with vendors prior to purchase.
If your main contact at the vendor is the same person throughout the implementation, the vendor can tailor the system to your company much more easily and efficiently. An upfront and candid discussion with vendors regarding implementation time before you license may also help. Most providers should have you up and running within a two-to-six-month time period depending on your needs and available resources. Most good vendors provide periodic updates to their systems such as new releases and service packs.
Ask vendors about the content of their last several updates or how they respond to changing regulatory requirements or government-reporting needs. You may want to ask up front whether their new releases or service packs are included in the annual maintenance fee or require an additional fee. Request client references from companies similar in size and in the same type of industry as yours. From the references, you can glean what those companies’ satisfaction level is with the system and with the vendor’s sales and implementation process, support, and updates and enhancements.
We hope this research report will come in handy to S&M businesses and large corporations. Should you have any additional questions about the custom-designed enterprise-grade solutions for HR purposes we are at your disposal. Subscribe to our blog and get the latest insights on the most innovative technologies for different industries.