According to a 2016 Global Human Resources Information Services study by Mercer, HR departments’ human resource information systems (HRIS) are antiquated, disparate and redundant — something the human resources professionals in your business have probably been trying to tell you. So how do companies choose and implement newer and better systems to do the work of the digital age?
Whether yours is a company with one location or one with multiple geographies or business units, a top-tier solution brings together the essential functions of Human Resources by simplifying the process of managing your company’s most important asset: your people. Modern Human Capital Management (HCM) is specifically designed to streamline the collection and use of the data required for the megalithic projects of payroll, benefits, ACA, recruitment and hiring, Having a single system of record for HR data can save hundreds of hours for a busy department and go a long way toward increasing data accuracy and operational productivity. Reliable and consistent reporting is also key for meeting a company’s compliance and legal obligations.
One of the key advantages of a next-generation platform is, it can interface with virtually any accounting system, eliminating double entry and allowing for more sophisticated reports. Plus, new custom general ledger reporting is a snap. This helps clients easily figure out the labor burden of any job. In fact, it gives the burden by hour for each employee — including their hourly wage, workers’ compensation, employer taxes, Medicare, Social Security, unemployment (federal and state), union dues, health insurance and 401K contributions.
“This kind of robust data helps our clients easily see and analyze the cost of doing business from a labor standpoint — which is almost always their largest expense,” says Andy Siegel, CEO and founder of Payday HCM. “With this system, you will be able to see and manage cash flow and job costing in your own customized system.”
A current HCM/HRIS system can also help HR professionals work through the emerging trends of coaching and training managers in employee development, effectively using workforce analytics, employee engagement, rewriting policies to address the issues of employees both globally and locally, and meeting the changing expectations of baby boomers and millennials in the workplace, such as employee self-service to make updates to their demographics information. Updated technologies are also scalable, so features can be added as a company grows.
Most modern data systems follow the SaaS (Software as a Service) model, which means the software is licensed on a subscription basis and is centrally hosted. When shopping for a new system, one of your requisites should be that the provider maintain formal and comprehensive security programs. A key indicator of those programs would be certified third-party audits looking at the security of customer data, protection against security threats and the prevention of unauthorized access.
Better technology and software is the key to better administration, especially when legacy systems are no longer meeting the organization’s needs. By investing in HR technology, you’ll give your Human Resources staff the support they need to move their focus away from process-driven and data-crunching responsibilities. Releasing the HR team from the time wasted with redundant or isolated systems pays dividends by allowing them to do their true jobs: championing human productivity and supporting your business goals through the nurturing of employees. The true value of a modern HCM system is that you can give the HR Department back their seat at the table to work on the human-centric issues that impact every company’s bottom line. Whether your business is five employees, 5,000, or more, chances are that now is the time to make a change for the better!