Choosing a Human Resources Information System (HRIS) For Your Business

Picking an HRIS for your business isn’t as simple as doing a Google search and going with the top result.

What is an HRIS, anyway?

HRIS stands for Human Resources Information System. It’s software that helps companies manage data and core HR processes in one central platform. It usually covers:

• Employee records
• Payroll and benefits
• Attendance tracking
• Performance management
• Compliance and reporting

In short, an HRIS centralises HR processes. Think of it as one platform where you can manage onboarding and leave management, to performance reviews, to storing documents and automating admin tasks.

Where should I start when choosing an HRIS?

Our top tip in your HRIS search is not to look for an HRIS yet!

This is a common mistake companies make. They instantly search for options before knowing what they need first.

You have to be clear about why you’re looking for an HRIS in the first place before you can consider the (many) options out there.

What to consider before choosing an HRIS

What problems would you want to solve? Is it leave management? Do you need it primarily for payroll? Or are you looking for performance management tools and employee engagement features as well?

What processes are you doing manually, or are inefficient, that you would want an HRIS to solve?

What do you need right now, and would these needs change in the next year or so? It’s important to consider a software’s capability to scale along with your business so you don’t have to switch providers at a later point.

Being clear about what you want to achieve with getting an HRIS for your business can save you a lot of time and money from the outset.

Key HRIS features to look for

Now that you’ve figured out what you need an HRIS for, the next thing to think about is what features you’d want your ideal HRIS to have.

Not all software is created equal. What works for one business might not work for the other—you can’t ask a business owner who operates in a different industry and with a different-sized team for their recommendations when it comes to an HRIS for your business.

However, while every business is different, these features are the ones you should look for:

1. Data management
   Employee data management is one of the prime reasons businesses purchase an HRIS. The system will act as a single place to store and update employee details, contracts, licenses, key documents, and more.
2. Payroll processing
   Payroll is a feature that most businesses look for in an HRIS as it automates the pay process. While it’s not a core function of every HRIS, having payroll functionality or a strong payroll integration can help ensure employees are paid accurately, while reducing errors and time spent manually processing pay.
3. Time and attendance tracking
   This is a critical feature for many systems. It lets you see who has clocked in for work, how many hours they’ve worked, and other details related to timekeeping. This isn’t a feature for micromanaging your people. It’s a feature that helps you gain a better understanding of overtime costs and your team’s hours.
4. Benefits management
   Employee benefits are an essential aspect of compensation. An HRIS that has a robust benefits management feature lets employees and employers alike easily access benefits from one platform. Letting you as a business owner automate and track eligibility eases the admin as well.
5. Employee self-service
   Another feature that businesses look for in an HRIS is the ability for team members to manage their own data. An example of this is a leave management function where the employee can lodge their request for leave on the system and get it approved and then saved and registered in the system to track for payroll purposes.

Why the ‘best’ HRIS isn’t the same for every business

With every business being unique, from your team members and your industry, to your goals and growth plans, it only makes sense that the best HRIS to suit your needs might be different from another business’s.

Now that we’ve gone through what you need to consider when choosing an HRIS, and the key features to look for, you now might have an idea what your ideal HRIS should look like. This will narrow down your search and help you weed out software choices that don’t align with what your business needs and how you operate.

Getting support when choosing an HRIS

If you came here looking for a definitive answer to what the best HRIS for your business is, we’ll have to apologise because we can’t answer that!

What we can do, however, is help you determine the best fit for your business with a customised plan. Choosing an HRIS can feel overwhelming, especially with the pressure of it being something that you’ll have to use in the long run.

We’ve supported businesses through HRIS selection and implementation before. This  includes helping organisations move from manual processes to fit-for-purpose systems that support compliance and growth.

You can see an example of how we’ve done this in practice in this case study.

Our HR partners can help reduce the pressure of picking an HRIS, while at the same time making sure you get the best one for you. We help businesses assess their needs, and from there, we shortlist the systems that make the most sense for your organisation.

If you’d like support in choosing or implementing an HRIS that fits your business, we’re here to help. Now Actually has a dedicated HRIS Selection Support service. Get in touch with us to have a chat about what might work best for your business.