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The decision to invest in HR technology requires as much thought and consideration as any other technology for your business, as you want to find solutions that fit the needs of your organization. There are many options in the marketplace, but which ones will help you achieve your business goals and which are a wasted investment? A Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of your HR, payroll, management, and accounting functions. Picking the right HRIS is a big decision, and you need to do some due diligence before you choose. Here are five things to consider:

  1. Is it an integrated solution?

Manual data entry can be a minefield of mistakes. Having an integrated HRIS eliminates redundant work, cuts down on user error, and can significantly increase efficiency, especially if you have multiple employees involved in your day-to-day HR, payroll, and benefits functions. For example, self-service portals allow employees to update their personal information, such as direct deposit and tax elections, which will then automatically flow over to payroll, eliminating the need for forms or data-entry by several departments to get that information into payroll, HR, and benefits systems.

  1. What analytical features are available?

You need solid data to make sound and educated business and operational decisions. Modern HRIS systems have analytical modules that contain data about your workforce, such as costs associated with turnover, and can alert you that it might be time to conduct an employee engagement survey to determine why your turnover rates are so high. A talent management module can help you develop your performance management process by automating your new hire check-ins and employee reviews, along with assisting in documenting any written performance warnings or performance improvement plans. Easy identification of potential problem areas can translate to huge savings when it comes to employee turnover and attrition.

  1. Will it relieve your compliance burden?

Smart HRIS technology can track when your business crosses headcount thresholds, keeping you compliant in meeting those applicable federal and state regulatory requirements. For growing organizations, staying compliant with the HR alphabet soup — COBRA, OSHA, FMLA, ACA, and so on — requires vigilance. Your HR technology platform should grow with you, providing scalability and adaptability. HR technology enables your business to be efficient, smart, and goal-aligned, but it won’t be able to solve everything. So you need to choose a company with a comprehensive compliance offering of a la carte solutions that can be used to enhance your HRIS system, such as FMLA tracking, ACA compliance, and applicant tracking systems.

  1. Is paperless onboarding an option?

Online onboarding is efficient at every level. New employees can complete all their information before their first day, so they’re ready to jump right into learning the job and the culture instead of filling out paperwork during orientation. Paperless onboarding is a much more streamlined approach to managing HR-related information with electronic solutions that keep you compliant, such as paperless Form I-9s, tax elections, benefit enrollments, and background checks.

  1. Is it secure?

Electronic personnel records are convenient and easier to keep secure than physical files stored in a filing cabinet. When you have all your employee data securely stored on an integrated, cloud-based platform, it facilitates the process of record retention as required by law. Additionally, cloud-based storage means that information can be encrypted, safely maintained, and backed up, and doesn’t need to take up physical office space.

One key to a successful investment in HRIS technology is having a team that understands the system and its capabilities, can set up your system to full functionality, and then hand over the keys. We consider ourselves experts when it comes to ADP’s HRIS technology and we would welcome the opportunity to assist you in finding out if ADP’s HRIS technology fits your business needs. Contact us to see how we can help your company select the right technology, smoothly transition to your new platform, and provide the support you need to receive maximum benefits.