Partnering with a more human resource

Implementing HRIS for Your Growing Business

Posted by: adpindia on 19 July 2017 in HR, Payroll

Running a business is complicated. In addition, if you’re running a small business, you have to handle multiple responsibilities at the same time. Among the sea of important tasks already at hand, you also have to manage administrative tasks such as keeping track of your employees’ data, handling compliances and running payroll, which, although seemingly mundane, are very important activities.

One of the most useful ways to get your small business on the right foundation is to set up a system of records. Let’s look at a simple example: You own a small start-up firm with 20 employees. In the initial days of setting up, your firm does not have any automation in place and relies on a paper-based system to track manual records. Now, fast forward to a couple of years later, and your firm has grown from strength to strength. You now have 200 employees and are rapidly expanding through aggressive hiring. With new employees coming onboard, the extra load of paperwork involved causes unwanted anomalies and the paper-based system you started out with is not intelligent enough to track them. What can you do to fix this?

This is where HRIS comes to the rescue.

An HRIS is a human resources information system, a category of business software that allows you to store and organize a vast amount of data pertaining to your employees. It could help you make operational decisions such as collect and report HR data or tactical ones such as allocation of resources.

Bringing your organization closer together with the modern HRIS

Today’s organizations aspire to bring employees together and make interactions intensive to create a cohesive work environment. This calls for one common focal point where employee data is stored so it can easily be looked up by anyone in the company. A seamlessly integrated HRIS acts as the core to all Human Capital Management (HCM) modules, by helping define pay structures in payroll, assign position structures in a talent module or even act as a source of information for absence management systems. The HRIS is the master employee data source, a library, if you will, from which all applications can extract and utilize data. Such a system is vitally important in today’s data-heavy, digital world of human capital management.


If all your HR systems seamlessly connect and talk to your HRIS, you are in a position of great advantage:

  • You can dynamically allocate org structures – Since an HRIS defines where an employee’s business unit, division, department and cost center are held, you can use this level of detail to create org structures across various modules, be it Leave and Attendance systems, Performance systems or even talent modules.
  • You can seamlessly run compensation cycles – With components such as pay ranges and pay grades well established in an HRIS template, you can effortlessly run your compensation cycles with the information which flows in from the HRIS.
  • You can create and assign roles within a matter of minutes – Role-based permissions assigned to users in a system is based on the employees data stored within the HRIS. Every employee who is hired can be given access to required modules based on job relationships defined in the HRIS.
  • You can achieve greater data accuracy – You can prevent data mismanagement by enforcing rules for core HRIS elements, such as jobs, positions or locations.

These are just a few of the many other things that an HRIS can streamline for you and help support effective people management, all while you continue to scale up your business and hire more and more employees as required.

Make better business decisions with HRIS Analytics

With data comes analysis. An HRIS contains a wealth of information which can be used to recognize patterns and establish a cause and effect relationship between business actions and results. This can help you make better business decisions, which in turn can help the company either replicate past actions or delve on new strategies. The world around us is getting more competitive by the day yet most HR practitioners live under the assumption (seldom backed by the right metrics) that what they are doing is working. Having access to HR Analytics is one of the most prominent benefits of having an HRIS in place.

Let’s go back to your fast-growing 200-member firm. Your organization has spent an eye-watering amount of time, money and people resources to source the right talent. But your effort doesn’t end there. It is important that the new hires are engaged enough to stay with you for the long run. How do you engage the new employees? How do you identify problem areas regarding your employees, and make relevant decisions, without having the right data and analysis at your fingertips?

An efficient HRIS has all of the data required to measure the health of an organization. This includes data-points that indicate how engaged your employees are, and what the employee turnover in your organization is. This data can be translated to provide insights into where the turnover rate is highest – is it among the new hires or the laterals? Is it pertinent to a few teams or seen organization-wide? With this bird’s-eye view, you can now take decisions accordingly, be it conducting quick surveys to glean more detailed information, or talking to individuals to see what is lacking and how you can boost the happiness index.

This is just one example of what analytics backed by the right HRIS can do for your business. You can track a plethora of things: monitor employee performance, improve hiring procedures, make budgetary decisions. You can catch and flag problem areas before they damage your operations, and find solutions to problems that are yet to flare up. There are many ways in which businesses can make HR Analytics work to spot problems and make corrections. But, ultimately, it all comes down to one fundamental move – implementing the right HRIS!

Build for the future with the modern HRIS

The foundation to a successful HCM strategy is a well-designed HRIS. The HRIS can help you align your HR strategy with your business objectives, and help you adapt quickly to market changes while building a competent workforce. Software technology has introduced the cloud-based SaaS HRIS model, which has helped small businesses implement HRIS without investing heavily on their IT infrastructure. SaaS models include flexible designs and feature databases integrated with a wide range of systems available.

If you are a growing business, investing in the right HRIS would mean investing in your business’s future and its success. By bringing greater efficiency to your processes, an HRIS can give you that competitive edge to build an organization that’s prepared for the future.

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