Human Resource Management System (HRIS) Does Make a Difference

7/29/2019 Human Resource Management System (HRIS) Does Make a Difference

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Systems Inc.

A Human Resource Company


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Mission Statement

It is our goal to provide our clients with themost reliable and up to date information on

the benefits of implementing a HumanResource Information System.


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Values We believe in upholding strong morals and business

ethics

We believe our customers are the most important aspectof our business

We listen to our clients and commit ourselves toexceeding their expectations

We are committed to making improvements in ouroperations in order to meet our goals

We pride ourselves on our hard working diverse

employees to provide the most accurate information toour clients

We believe in rewarding and recognizing our employeesfor outstanding achievements in the industry


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What is a HRIS?

A human resource information system isan integrated system providing information

used by HR management in decisionmaking. It allows a company to keep trackof all of its employees and information

about them. It is usually done in adatabase or, more often, in a series ofinter-related databases. (1)


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History of HRIS Developed in the 1960s. Used by large companies with their payroll systems. Very expensive to buy and use. Required a full time staff to support them.

Provided limited information and were often difficult tocustomize. Introduction of Personal Computers in the 1980 made

them affordable. Access to electronic information made them popular.

Mid 1990s web based systems became popular. Provided larger storage and better processing

capabilities. Understanding of HR depth made Spectrum, PeopleSoft,

and Oracle leaders in the HRIS industry.


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Information included in a HRIS

Department Job title

Grade

Salary

Salary history

Position history

Supervisor

Training completed

Special qualifications Ethnicity

Date of birth

Disabilities

Veterans status

Visa status

Benefits selected

.more

HRIS systems include the employee name andcontact information and all or some of thefollowing:


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HRIS Uses

Attendance and PTO use Pay raises and history Pay grades and positions held

Performance development plans Training received Disciplinary action received Personal employee information and occasionally

Management and key employee succession plans High potential employee identification Applicant tracking, interviewing and selection


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Capabilities of better HRIS

Management of all employee information

Reporting and analysis of employee information

Company-related documents such as employeehandbooks, emergency evacuation procedures, andsafety guidelines.

Benefits administration including enrollment, statuschanges, and personal information updating

Complete integration with payroll and other companyfinancial software and accounting systems.

Applicant and resume management


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Types of HRIS

PeopleSoft

Spectrum

Smart human logistics Simpata

People-Trak

Each software has a target market that rangesfrom small to large


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Reasons to use an HRIS

Enables employees to do their own updates andaddress changes,

Frees HR staff for more strategic functions. Data necessary for employee management,

knowledge development, career growth anddevelopment, and equal treatment is facilitated.

Managers can access the information they needto legally, ethically, and effectively support thesuccess of their reporting employees.


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Appropriate HRIS for your

Company General rule of thumb: If you staff more

than 100 employees you may want to

consider a HRIS Third party consultants can be used to

help with the selection process

Develop a checklist to help establishneeds


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Checklist

Core checklist Personal information, including basic contact information,demographic data, dependents, military history and emergencycontacts

Benefits administration including unlimited plans, on-line openenrollment, premium calculations, eligibility, benefits statements,cost summaries, HIPAA Certificates, COBRA tracking and carrierinformation

Total Compensation including base pay, other pay, planning toolsand pay grades

Absence accruals, time-off requests, paid time-off and FMLA

Employee development, including training courses and classes, on-line enrollment, wait lists, qualifications, competencies and

certifications


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Checklist

Additional content Recruitment and applicant management

Budgeting and position control

Career and succession planning

Salary survey analysis

Electronic timesheets

Organizational charts Employee and manager self service


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Checklist

Vendor Profile Number of years in business

Main business focus (i.e. HR only, Payroll, Enterprise Systems)

Number of key staff members who have prior HR experience and

their roles within the organization Avenues for selling the HRIS (i.e. sales force, third parties)

Avenues for service support (i.e. internal support or outsourced)

Typical length of implementation

Number of full-time staff involved exclusively in Development,

Support Services, Marketing, Sales, and Corporate Administration

Avenue for handling hot-line support calls and the typical responsetimes


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Vendor checklist cont.

Business partners and the way those services enhance the vendorsproduct

Technology operating environment (i.e. Microsoft, Oracle, IBM/DB2,etc.)

Scope of clients the vendor serves o Type and size of clients serviced o Client base by industry sector o Number of clients that have licensed the product and how many of those clients are still active

o Number of new clients acquired in the past 2 years o Number of clients on active maintenance plans o Reasons for losing clients (4)


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Additional questions to ask Do you have a budget for an HRIS and can the vendor

provide you with a solid ROI?

What internal staff will be needed to support the

system?

Type of purchasing option: License, Host or ASP

What resources and experience does the vendor havewith implementations similar to yours?

Can the vendor meet your expectations?


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Implementing a HRIS

3 keys areas

Configure the HRIS for the companys

process and policiesThe company must then interface the data

with other systems and convert thecompanys historical data into the new system

Company must prepare itself for the system.


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Interfacing When linking the HRIS with existing systems companies

may form teams to deal with the various activities of theHRIS.

Often times HR team members find that original data isnot up to date. This is a good time to get up to dateemployee data from the employees.

Compatibility may become an issue:

Remapping or upgrades must be done

Remapping can be time consuming

Upgrading can be costly, but worth it in the long run


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Preparing the Company

A lot changes will take place before, during, and after aHRIS is implemented.

Extensive time, energy, and money will go intoimplementing a HRIS. During this time a lot of problemsand stress can arise.

Departments that didnt work together before often times

will work with one another after implementation.


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ROI

ROI is main reason for integration of HRIS Factors of ROI can include:

How many part time and full time employees are staffed by

the firm? Salary of employees Overtime pay Training pay

Use the calculator at following URL to help find

the ROI for your company:http://www.oracle.com/global/uk/campaigns05/roi_6.html
http://www.oracle.com/global/uk/campaigns05/roi_6.htmlhttp://www.oracle.com/global/uk/campaigns05/roi_6.htmlhttp://www.oracle.com/global/uk/campaigns05/roi_6.htmlhttp://www.oracle.com/global/uk/campaigns05/roi_6.html


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ROI Examples

The Cedar Group, a global technology consultingcompany, estimated a five-year savings of $7.89 million byintegrating a HRIS. In their HR department alone they sawthe following ROI:

86% reduction in payroll run time: reduced from 43 hours to 6 hours

Increased from 6 companies to 15 with no impact to payroll processingtime

30% FTE reduction: Reduced HR and Payroll FTE reduced from 23 to16

Eliminated manual data entry for open enrollment

Improved customer service in HR, Benefits and Payroll (2)


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ROI Example

The New York City Housing Authority (NYCHA) isAmericas largest public housing organization.

Implemented Oracle E-Business HRIS in 2003.

By implementing the HRIS NYCHA was able to decrease

their Full time equivalent employees by 30%, from 90employees down to 60, which saved them an estimated$4.5 million. In total NYCHA saw a ROI of 137%.

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Human Resource Management System (HRIS) Does Make a Difference