What is HRIS & Why is it Growing in Importance?
HRIS stands for Human Resource Information System, which is a digital system that manages an organisation’s HR data needed for human resources management. An HRIS (also known as HRMS/HCM) encompasses a wide range of people-related data and is routinely used by both employees and employers for a multitude of reasons. With HRIS you are simply integrating all your company’s HR activities into a digital system.
An HRIS can have different features and capabilities but typically includes:
- Company Documents
- Employee Information
- Leave/Absence Management
- Training Records
- Performance Plans
- Recruitment Tracking
Every aspect of business operation is becoming more digitalised and it is no different for HR. Long-term strategists are all turning to digital solutions to streamline their business. With Covid-19 causing financial problems for many companies, streamlining their HR operations has been a popular method to cut down on costs. Businesses need to evolve and meet the demands of a world that are becoming increasingly people-centric and technology-driven.
How Can an HRIS Benefit My Business?
Managing people-related data in one location will increase business efficiency and accuracy as everything will all come from one source of truth. This reduces the chances of mistakes due to the reduced need to manually manipulate data, ensuring accuracy in data like payroll, leave, and benefits. HRIS creates a standardised system that is consistent across the organisation in all locations.
Digitalising data is crucial for keeping everything data organized and backed up for future reference. Information can be easily searched and pulled from the database while updates are quick. The risk of losing important information will be removed as it can now all be stored in the cloud.
Greater User Experience
Employees and employers will both have a better experience when dealing with HR-related issues. Good HRIS systems help improve employee’s perception of the company as everything will run more efficiently. Employees can simply request leave, find contact information, and check payments from their computers or phone.
Frees Up Your HR Team
With many HR tasks automated and optimised by an HRIS system, your HR team will be freed up to focus on HR strategy. HR teams can focus on building the company’s brand, improving employee productivity,implement policies that help retain talent to reduce the turnover rate.
Regulations are constantly changing and can vary drastically from location to location. Good HRIS vendors will constantly update their systems with the latest laws that can affect your business. Finding a vendor that has a multi-country presence and expertise is particularly important for multinational corporations if they want to stay compliant.
Why You Don’t Have to Buy an HRIS
Businesses in Asia do not have to buy an HRIS and can get access to it for free if they adopt payroll outsourcing. Most outsourcing providers use an HRIS from which to deliver their services and can spread the cost of the HRIS across a high number of clients, which means access to the HCM should be included in the cost of your outsourcing service.
Implementing an HRIS on your own involves a lot of commitment and offers no flexibility for businesses. It requires a lot of work from a dedicated team and creates financial risks. The process can also be long and drawn out. Many affordable HRIS systems in Asia are dated and only support payroll calculations in one or two countries. If your business operates in multiple countries the HRIS won’t be able to integrate with other locations and make reporting difficult and inconsistent.
By partnering with a Payroll Outsourcing provider, you will remove the risks associated with purchasing an HRIS while also being committed to a much shorter time frame. This will allow your HR team to focus more on business strategies and growing the company. If you want to know how payroll outsourcing can help your business, please contact us now!
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.