Why Implement a Human Resource Information Software (HRIS) System?

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Running a business will generate a lot of information, both related to the business and related to your employees. You need to be able to harness and secure this information in a system for a couple of different reasons. First, you do not want confidential information about your organization or employees getting into the wrong hands. Additionally, a human resource information software (HRIS) system is a wise choice because it will reduce the amount of paper generated, organize your data, streamline processes, and help your company's bottom line.

So, why is HR information important? Your employees are your largest asset-having a system in which to contain their private personnel information, confidential and securely is critical. You have worked hard to become an employer of choice-don't ruin that credibility by mishandling confidential information.

Making a Business Case for the HRIS System

The HRIS system is an investment to an organization. An HRIS system is more than just a storage and organizational tool to contain confidential information about your organization's employees. The HRIS system needs to be viewed from a financial perspective. For instance, an HR manager or department usually has to justify their expenses and if HR's functions are not tracked properly, you could be losing money. These include:

  • Providing benefits for ineligible employees or their dependents.
  • Cost of training new employees.
  • Documenting why people leave the organization because the cost of terminations is high, and if you can track why people leave, then changes can ensue.
  • Not properly recording vacation or sick leave taken. Time and attendance creates a loss of productivity, so having a way to track it to ensure there is not abuse of the system or employees taking time they do not have will help to reduce the risk of losing productivity and, extremely, revenue.
  • Reduce potential legal expenses in an employee dispute. Accurate and complete records can help build your case or diffuse a situation before it even gets in the courts.

Other justifications for a HRIS system can include savings in paper and supply costs and savings in time spent on human resource tasks. By implementing an effective HRIS system, the organization is well on their way to increasing confidentiality of their employees' information.

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