HR Software

HRIS, or a human resource information system can assist you in making your HR department more effective, permitting you to focus on long-term strategic HR work, instead of basic administration and repetitive tasks. The HRIS software ranges from off-the-rack $500 packages to those costing above $100,000, with a variety of modules to choose - handling payroll, basic demographic, recruiting, benefits, performance assessment, training and development, and more.

Before you start to call the HRIS companies, think about how you want to improve your HR activities. You may want an HRIS that makes your current processes easier and faster, permits employee self-service gains, manages payroll processing or automates applicant tracking. Installing an HRIS that can make HR efficient and a more strategic part of your organization is definitely a smart idea.

HRIS helps you with compliance issues
HR departments are faced with a tangle of compliance issues from basics like ADA and EEO that apply to every US business, to more specific laws and regulations from HIPPA to OSHA to SAS 70 to ISO 9000 and international standards like European Safe Harbor requirements. A good HRIS that focuses on compliance as it streamlines your processes is the ideal choice.

What modules should you get with HRIS?
HRISes are mainly sold in modules like payroll module, recruiting and tracking module or a core HR module. The advantage being, that you can start with areas important to your business, and later add more modules as you become familiar with the system.

1. Core HR management- An HRIS provides a complete overview of your HR picture and lessens administrative overheads by centralizing data that exists in multiple locations. Look for the following in a core HR module.

• Comprehensive demographics- tracks all employee data like education, previous employment, emergency contacts, job history, employment eligibility forms and more.
• Performance reviews- formalize and automate review process, including self, peer and managers approvals and reviews.
• Time and attendance reporting- either incorporates with your existing time tracking system, or caters to all the attendance tracking features you require.

2. Payroll is usually the first facet of HR to be automated when the job is outsourced to a payroll service provider. Computerized payroll systems reduce errors and time spent by your staff on payroll work. Consider following features in your payroll module

• Special paycheck handling covers commission driven paychecks, wage garnishment, changing taxes and other uncommon payroll activities.
• Effective security- multi layers of protection and encryption against unauthorized access.

3. Benefits management- Employees put tremendous value on benefits like vacation time, health insurance and retirement plans. HRIS reduces the time your staff spends on enrolment changes, forms and requests. Make sure this module covers all the benefits you need like health and dental insurance, parenting leaves, community service time, vision insurances, flexible schedules or dependent accounts. It should also connect to external systems like 401k plans, health insurance, and other benefit providers.

4. Recruiting the best talent is a vital role of Human Resource. An effective HRIS can help by portraying your organization as well organized and technology savvy. This module should allow applicants to see available positions, submit resumes and check status via your web site. It should also send resumes to appropriate people, schedule interviews and track recruiting activities.

5. Talent management is one of the most important features of an HRIS. Look for the following features in this module.

• Career development- tracks training and skills
• Performance management- manages employee reviews, including upward feedback and peer input.
• Succession planning- for key staff departures and allow likely candidates for promotion.
• Retention planning- discovers your best employee and gives them grounds to remain.

What should I look for in good HRIS software?

1. Software should be easy to use. Look for answers to the following questions.

Is the main menu and screen easy to understand? Is it intuitive enough?
How easy is data entry? Is some of it automated? Can it handle no-standard data?
How does the data flow? Does it match your work flow? If not can it be customized? Can you customize options and labels matching your HR policies?
What are the numbers of steps required to perform main actions?
Can you easily locate specific data on individual employees?
Is the help easy to use? Is there any contextual help available?

2. Reporting- Get sample reports from every vendor to compare the information level and consider the top level reports and ‘dashboards’. Seek a system enabling you to export data in a usable format like Excel, Crystal Report, or other format.

3. Employee self service- reduces administrative work for your HR staff. Employees collect information and make changes to their HR Information and make benefits elections themselves. Instead of completing a paper form or calling an HR rep., self- service applications work over the internet or an intranet, allowing employees to manage different kinds of HR transactions.

4. Security- A good HRIS must have password protection and include additional security by offering audit trails that track all changes made to employees and payroll data.

5. Integration- You may need to integrate the HRIS software with software you’re already using, like payroll service, accounting system or time tracking software. Tell vendors the kind of integration you need.

6. Locally hosted software vs. ASP- Locally hosted software or client server configuration is the traditional software setup. It runs on your computer, stores data on the hard drive, but needs technical expertise. Most of the cost is connected to purchase, installation and new hardware. ASP or application service providers host the application and your data on their servers and are accessed via the internet using a web browser. Make sure the ASP vendor provides security, regular backups and power backups for uninterrupted service. ASP solutions come for a small set up fees and monthly payments. 

How to find a suitable HRIS vendor?
Solicit multiple quotes from HRIS vendors on TradeSeam. Look for a vendor who is ready to work with you and would spend time to understand your needs.

• Visit vendor’s websites, make calls to them and find out what they have to offer.
• Ask for a demonstration.
• Ask questions based on your requirements list.
• If working with resellers, make sure they will be able to service the system after the sale is complete. Your software may need regular updates and maintenance.
• Inquire about their customer service policy like availability on phone, response time, support fees and expertise level of the reps.
• Ask for on-site training of your staff.
• Ask for references, preferably of customers similar to your size and industry. Make sure current users of HRIS under consideration are happy with their purchase and service. 

How much should I expect to spend on HR Information System?
Prices can vary depending upon the vendors, your needs, type of software modules and location. Compare HR Software Price Quotes to make an informed decision . Consider total cost of ownership when comparing vendors. Rather than focus solely on price, make sure the software meets your requirements and is easily upgradable with new modules if needed.  Training and customer support may cost extra. Make sure you inquire about it.