The Value of Human Resource Management Systems: To Have or Not to Have
“Human Resources isn’t a thing we do. It’s the thing that runs our business.”– Steve Wynn, Wynn Las Vegas
Do you constantly find yourself in a tornado of paperwork? Maybe you’re in throes of endless resumes, and inefficiencies are beginning to drive you nutty? And more importantly is this costing the business money, time and valuable resources? Hint – that’s you.
If your answer is ‘Yes’ or ‘Maybe’ to the above question, then it’s time to take ACTION.
In this article we’re going to explore the modernization of Human Resources technology, and how your business can benefit from it.
A HRMS (Human Resource Management System) or HRIS (Human Resource Information System) is a combination of systems and processes offering a streamlined, one-stop-shop approach to managing all things human resource for your business. Even small 25-person offices are choosing a HRIS to handle all their HR activities electronically, saving them time and increasing their productivity and capabilities.
Here are four immediate benefits when you start using a HRIS:
RECRUITING:When it comes to recruiting methods, whether you are sourcing or reviewing paper applications and so forth, these elements can be condensed into one program that houses recruitment, screening, interviewing, hiring and on-boarding. And it doesn’t stop there.
ON-BOARDING:New hires that undergo a structured on-boarding program are 58% more likely to be with the company after three years. (Source: Wynhurst Group)
RETENTION: Once you find that stellar employee, you have to keep them, and with an effective HRIS system, your employees can navigate continuous learning applications, classes and career paths that will keep them engaged and wanting more of what the company has to offer them.
ADMINISTRATION:Even down to payroll, time and attendance, compliance, employee scheduling and benefits (medical, dental, life, vision, etc.) a HRMS can seamlessly connect everything HR and keep your business running smooth and efficiently.
Not sold yet? But what about the costs you ask?
The technology costs will vary considerably, depending on the size of the company and its HR needs. Costs typically range from $300 to $700 per employee as an initial investment for companies with more than 1,000 employees. Small businesses will often choose to rent the application rather than buying it, providing a much lower price point. Research has found that most companies can recoup HRMS costs within three years of system launch, based on process efficiencies alone.
FACT – A Human Resource Information System will help you transition from doing administrative cost-center functions allowing you more time to play a more strategic role for the organization. Wouldn’t you rather be spending your time improving functions such as recruitment, performance/competency management, employee development, and employee retention than doing things like printing 9,000 resumes, reading them, filing them, etc.
CHALLENGE –How can you convince your Business Leader to invest in something like this? TO DO: Take the next 60 days to inventory your HR team’s time, which will then provide you with concrete data of your current state/situation to show your Business Leader.
80% of CEOs and business leaders say they do not get comprehensive data from HR.
After inventorying your team’s time for 60 days, we recommend you make it simple for your Business Leaders to understand by creating a visual with the data, as shown below. And if 56% of HR’s time is being spent on Reactive, Administrative and Inefficient Operational items, that alone should convince your Business Leader there needs to be a better, more efficient way to do things.
A website, Software Advice lists their top Human Resource Management Systems for small to mid-size HR departments. Here are the ones we think are worth mentioning.
If your HR team is a team of one, or very few, this is the application for your business! Winner of the 2013 Alfred P. Sloan Awards for Excellence in Workplace Effectiveness and Flexibility, BambooHR Software eliminates those stacks of paperwork and files and converts them into organized reports and online data. Keeping payroll and employee scheduling is a major part of any business, and BambooHR Software makes it easy for a small HR team to keep track of the financial aspect of your HR department. Explore BambooHR
Ascentis HR provides human resource departments of small to midsized businesses the ease of streamlining all recruiting and onboarding elements into one program. What sets this HR application apart from others is the reporting feature that tracks analytics within employee metrics. In this way, recruiters are provided with a visual study of hiring trends. Additionally, Ascentis HR contains a cool mobile feature, making your HR records, files and data accessible anytime, anywhere. Explore Ascentis
iCIMS is a dedicated talent acquisition management system that makes recruiting super simple. As a fully functioning talent acquisition suite, gone are the days of posting job listings on multiples sites and having to rely on different channels to find top talent. With iCIMS, recruiters have the luxury of getting listings out, and generating a larger applicant pool simply by the extreme reach this program allows. iCIMS comes loaded with a career portal, though most users agree that the functionality of the recruiting iCIMS provides is definitely the key to the success of the application. Explore iCIMS
ClearCompany HRM takes your business’ hiring process to the next level. A full service human resources management system, this program handles your personnel selection process from recruiting, to screening of applicants including background checks and compliance, all the way to onboarding and new hire paperwork. All-inclusive with a full service applicant tracking system, users of this program have given it high ratings and deemed it a resourceful tool for smaller business HR teams. Explore ClearCompany
Kronos Workforce Ready Software provides small to midsized businesses with a simplified solution to their HR needs. Kronos is a web-based, cloud platform that provides easy management of employee data input, payroll time and attendance and other HR aspects of your business. The selling point of Kronos is definitely the price. There is no hardware or installation needs, and businesses can access this tool at a cost that is friendly to the small and midsized markets. Explore Kronos
If you’re looking for a comprehensive technology solution to your human resource needs, there is an endless supply. Do your due diligence and find the system that works best for your business’s present AND future goals. Don’t know how or where to start?Contact us with your questions and we’d be happy to give you 10 minutes of our time for some quick free advice.
Please comment and share below.Do you think having an HRIS system will help your company drive bottom-line results? What HRIS system are you using? Which do you recommend?
Kimetha is the Communications Manager at Wejungo.com. She’s originally from Virginia and moved to California in 2011 to start a new sun-filled life. She is an avid sports fan who also shares an equally deep passion for music and writing. We love Kimetha because she always strives to leave her footprint on this earth in the most positive ways.
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