It’s no secret that the integration of technology into human resources is changing how we manage our employees with HR. Yet misconceptions about a Human Resource Information System's (HRIS) role for SMEs often cause many company leaders to overlook its value. If you are an HR professional looking to make the implementation of an HRIS a priority at your executive table, start by addressing the realities of these common misconceptions:
Acquiring an HRIS at the early stages of a company is often delayed because it is seen as unnecessary for managing a small team. Today, companies of all sizes enjoy the benefits of automation. It’s a valuable tool that gives you real-time access to the most up-to-date information. As your company scales, you will also have the data you need to readily predict and address the issues that will surface when managing your growing team.
Tip #1: There are many viable software options designed specifically for SMEs. It comes down to choosing the one that will bring you the most value by meeting your business needs and working with you to grow your company.
The part of the problem is that it is seen as an expense rather than an investment. If you’re earning $25 per hour and spending 4 hours on administrative tasks on a typical day, that is roughly 960 hours and $24,000 of your yearly pay designated to processes that can easily be done within minutes. A well-implemented HRIS, when used to its fullest potential, can support an HR function that has a greater capacity to drive performance through increased employee engagement, retention and well-being.
Tip #2: Inefficient processes in a day’s work are often quick to go unnoticed, so bring in the big picture using quantitative values. How many dollars are going into currently managing administrative tasks? How much can be saved and gained by using an HRIS? Show your leaders the number value and they won’t be so quick to turn the other way.
The best HRIS in the market store data in an encrypted format and have built in access rules to permit or prevent access to different types of employee information. They also give standardized API to enable the automated integration with your internal systems to avoid having to manually move data to the new system.
Tip #3: Learn more about the data integrity procedures and safeguards of potential vendors so that you are prepared to address any questions or concerns when pitching the idea of getting an HRIS. The more knowledgeable you are about how the software works, the more confident your company executives will be when approving your request.
HR software is built around the concept of making employee management processes more efficient for not only managers but employees as well. Your team will certainly appreciate having greater control over managing and accessing their own information without having to pass through HR every time. Besides, with tech-oriented Millennials now making up the majority of the workforce, they will be quick to embrace the software for its convenience and efficiency.
Tip #4: If you don’t think your team will give it much use, engage them from the very beginning. Allow them to have a say in which software they think is best suited towards their needs and they will likely be more excited to use it once implemented.
This misconception is mainly a concern for HR professionals but is still worth noting. If you’re hesitant on moving to cloud HR in fear that your role will be less valuable, you could not be more wrong. An effective HR function still needs to apply sound judgment, reasoning, negotiation, and innovation to address employee needs - and technology cannot do that for you. To drive strategic initiatives, a software can help provide you with the problem, but not the solution. The human mind and touch will always be a necessity if HR is to continue fostering organizational success.
Tip #5: The best thing you can do is to keep in mind that the true value of HR lies within your ability to influence the bottom line through your employees. HR technology is not meant to replace you, but rather give you the tools to leverage your HR mind.
I’m the Director of HR at Humi, and I’m obsessed with all things people and human resources. Throughout my time working in a range of industries, I’ve learned that one thing is clear: the world of work is changing and HR professionals are leading the charge.
I believe that businesses should know their people as well as they know their product. But people are complex, and the solutions aren’t always easy. That’s how Think with Humi will help.
Written by me, this newsletter is designed to give you insight into the relevant and raw people challenges, and give you the tools to enable you to continuously to shape the future of work.
Written by a people leader, for people leaders.