Is Your HRIS Working for You?

One of the unique services that PBO Advisory Group provides is HRIS consulting and implementation. An HRIS – human resources information system(s) – manages and automates HR processes in a wide range of areas. Unfortunately, we often see companies not getting what they need or utilizing their HRIS to its fullest potential.

In working with clients to assess their HRIS, our team found that 100% of our clients utilize multiple systems, which require multiple touchpoints, impacting productivity, creating errors, and requiring intensive manual processes. In 90% of the clients we’ve worked with, their HRIS didn’t meet the company’s needs, was incorrectly implemented, lacked user training, and/or management reporting was not utilized.

HR technology has changed significantly in the last five years and is rapidly advancing. While “old school” HR didn’t focus on tech usage, “new school” HR does, and is AI-driven. There are now many HR tech solutions on the market, and it can be impossible for HR professionals and IT generalists to stay current.

Companies of all sizes can benefit from an HRIS. Those not currently automating their HR process are likely expending too much time and effort. Even companies currently utilizing an HRIS, are probably not utilizing their systems fully.

Needing or Upgrading HRIS

How do you know when it’s time to implement or upgrade a system? Consider the following:

Growth – Sudden growth or planning to grow. This is the number one reason companies need to implement a new system. In states such as California where workplace and employment regulations are specific to the number of employees a company has, it is essential that an HRIS is working for you to ensure compliance. As your company expands, the productivity of manual or limited automated processes decreases significantly. Most companies need more power and more services, which a new HRIS offers. (FYI – despite what a system salesperson may tell you, companies can and do outgrow their systems. This is particularly true for industries that are highly regulated.)

Multiple Systems – You rely on multiple systems for employee-facing (“employee experience”) tasks such as onboarding, payroll, timekeeping, benefits, 401Ks, ATS (applicant tracking system), LMS, (learning management system), accounting, etc., due to your systems not being integrated. One of the top goals we establish for clients is to minimize the number of systems they utilize. The ideal scenario is for a company to have one system. This makes the data and processes more secure and easier to maintain. However, this is not always possible. Some clients, based on their need and perhaps their industry, require two or three systems. The more systems your company uses, the more likelihood of errors and conflicting information, due to information being input multiple times into multiple records. This also leads to higher costs for the company.

When PBO Advisory works with a client with multiple systems, we evaluate the backend of each to determine if and how the systems can be integrated. For some systems, integration is an option but not always. This is especially true with payroll systems, and this is often the first place we look for potential integration.

Lack of systems – Companies usually have multiple or too many systems, not the lack thereof. However, some companies still prefer limited use or zero technology for HR processes. Not only is this time-consuming, error-filled, and expensive, but it also denies the company helpful data and puts an employer at greater legal exposure.

HR processes are too complex and complicated – HRIS systems are designed to optimize and simplify. If your system doesn’t check these boxes, then it is either the wrong system for you or it isn’t being utilized properly. If you’ve ever thought “There’s got to be a better way to do this,” there probably is.

Noncompliance with HR laws, regulations, and policies – Human resources is about preventing risk. While risk is not 100% preventable, you can decrease it. Compliance issues are woven throughout all HR processes from wage and hour to employee and independent contractor classifications to terminations and retirement. An HRIS can track compliance, decreasing the opportunity for an employee lawsuit or government penalties.

Management cannot access “people” data – From having basic information about each employee to mandatory reporting requirements, having demographic and analytical information about your workforce is vital. An HRIS allows you to automate the gathering and distribution of all types of data, ranging from hiring and turnover to payroll and performance.

What’s Next

If you are experience any of these issues, it might be time to consider an upgrade or a new system.

When working with clients, our PBO Advisory team starts with a full assessment of the existing HRIS systems combined with what the client needs now and in the future. We look at everything from workflow and set-up to utilization and costs. Based on each client’s requirements, we then provide a recommendation.

In future blog posts we’ll detail the three types of recommendations that we typically make to clients, help you determine the ROI of your HRIS, and other ways your HRIS can – and should – work harder for you.

Justin Hall, MBA is a consulting HR director at PBO Advisory Group and HRIS Subject Matter Expert (SME).

If you would like more information about assessing and improving your HRIS, please contact Justin.

Justing Hall, MBA
Consulting HR Director