1. Human Resource Information Systems (HRIS)
Understanding your needs and identifying solutions
Phil Lamb
Managing Director
2. Contents
What is HRIS?
Why do companies invest in these technologies?
Smaller firms have historically been more reluctant
What is Software as a Service (SaaS)? And why does it matter?
Understanding your needs and priorities
Step by step approach
Making your case for HRIS
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3. What is HRIS?
Benefit
Management
Demographics
Reporting &
Compensation
Employee
Portal
Workflows & Time &
Communication Attendance
Performance Applicant
Management Tracking
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4. HRIS is an evolving technology
Some functionality is widely utilized and highly valuable;
Other functionality is in early adoption phase
Benefit
High Mgmt
Time & ~80%
Attendance
~30%
Applicant
Tracking Demo-
Medium ~25% graphics
~90%
Perform
Value Mgmt
~20%
Low Workflow
~20%
Estimated adoption rate
Negative
Industry Lifecycle
3
5. Case Study
Client Profile: ~1,000 employees, 20 locations, based in Texas
Issues Key Benefits
Utilized paper-based Employees were able to
enrollment process learn about benefit
offerings online
Seeking more efficient
enrollment process with Open enrollment and life
fewer errors events managed online
Key HR data maintained on Demographic data
several systems, including managed centrally
excel files
Permission based access
Other departments (e.g., and reporting
Finance) constantly functionality relieved
requested reports reporting burden
Panelist Questions:
1) In your experience, why do companies invest in an online enrollment/HRIS system?
2) What types of companies are more likely to utilize a system (size, industry, other characteristics)?
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6. Why do companies invest in HRIS?
50% of HR time is spent Online enrollment alone saves
processing employee information $27.50 per employee per annum on
and answering questions (1) printing, postage and personnel (2)
Only 45% of employees feel that The benchmark class for ratio of
they receive adequate employees to HR generalists
communication from managers Efficiency
ranges from 141:1 to 318:1 (3)
and HR departments (4)
Paper-based
FLSA, FMLA, OSHA, Communication
communication
EEO, ADA, FICA,
results in 40% error
FUTA, ADEA, health
rates compared to
care reform….
5% in electronic file
exchanges
Compliance,
Necessity
Litigation Risk
5
(1) Forrester Research, (2) Forrester Research (3)Best Practices, LLC (4) ReviewSNAP
7. Who is investing?
Large firms have historically invested more in HRIS systems
% 45
40
35
30
25
20 Large (>500 ees)
Smaller (<500 ees)
15
10
5
0
No Yes, but no This Year Yes in 1+ Not Expanding Don't Know
plans year Expanding
But… new technological progress has driven down costs,
making functionality available to smaller firms
Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009 6
8. What is Software as a Service (SaaS)?
Traditional Software On-Demand Utility
Plug In, Subscribe
Build Your Own
Pay-per-Use
UC Berkeley, Strategic Computing and Communications Technology, Group D 7
9. Why does SaaS matter?
Smaller firms can now enjoy HRIS functionality
that only large firms could afford (e.g., PeopleSoft)
UC Berkeley, Strategic Computing and Communications Technology, Group D 8
10. Understanding your needs and priorities
• Standard Features
• Employee self-service • Benefit management
• Demographic information • Compensation management
• Time & Attendance
• Clock-in, clock-out • Project-based timekeeping
• Time sheet management • Time-off tracking
• Talent Management
• Web-based applicant tracking • Performance management
• Communication tools • Training/skills tracking
• HR Functionality
• Workflows • Survey capabilities
• Wellness programs • Advanced reporting
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11. A step by step approach
Determine
Needs
Obtain Establish a
Approval (ROI) Budget
Develop Interview and
Project Plan Evaluate
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12. Making your case for HRIS
Cost
Savings
Return on
Divided by
Investment
Hard
and Soft
Costs
Cost savings and improved communication can be difficult to
quantify, remember to factor in compliance and risk management
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