9 Essential Steps To Choosing An HRIS System

“Startups are built to solve specific problems. When starting out, we focus all our energies on solving that specific problem. Any effort spent on anything else is wasted,” Ariel Diaz, founder and Chief Strategy Officer of Vendr, writes in his post, “SaaS Tools for Startups, What You Need.”

If you’ve launched a startup, you’re likely building from the ground up. In other words, you’re probably building your workforce and SaaS stack from the bottom up, too. Before you know it, you need tools to manage both.

Or, perhaps you’re a small business owner, and your business is growing. In whichever case, one specific tool we urge you to use is a human resources information system (HRIS) or workforce management system.

What is an HRIS?

A Human Resources Information System (HRIS) is a computer software program that combines human resource (HR) activities with information technology, like data entry, time-tracking, and management capabilities for human resources, payroll, accounting, and benefits administration.

What an HRIS system does

By and large, an HRIS is a basic end-to-end software solution for human resources management system (HRMS). And in particular, this HR system organizes and manages employee information in one location, serving as a single source of reliable data.

Why implement an HRIS system?

Organizations use HRIS software for many reasons:

1. Time-savings

Because human resource information systems is a single-source data hub, you can access employee records faster than searching through filing cabinets.

In addition, an HRIS simplifies other core HR processes, like paid-time-off (PTO) requests, PTO accruals and balance tracking, maintenance, and performance management. Moreover, you can create reports in seconds with only a few clicks. So with time saved by delegating HR tasks, HR professionals can spend more time on strategic actions like increasing productivity, improving retention, and monitoring company culture.

For example, providing a solution with an employee self-service feature can improve employee engagement while saving time.

Learn “Why Your Company Needs a SaaS System of Record.”

2. Compliance maintenance

HRIS system vendor features often include automatic updates to stay on top of regulations and standards, such as Service Organization Control (SOC 2) and General Data Protection Regulation (GDPR).

Check out “What Every SaaS Business Should Know About Compliance.”

3. HR cost reduction and control

Time saved is money earned. Because labor is one of the most significant expenses for companies, HR departments help them get the most value from this resource. In other words, an effective and efficient HR function means a cost-effective and cost-efficient business with both having a positive effect on the bottom line: profit.

Read “5 Ways IT Improves Business Cost-efficiency.”

How to evaluate an HRIS system

According to HR.com’s presentation, “Factors to Consider When Evaluating Core HRIS and Talent Management Solutions,” there are nine steps to find the right HRIS:

1. Form an evaluation team.

Your evaluation team should include:

• Key stakeholders
• Management representative
• Steering committee executive
• IT group representative
• Team leader or coordinator

2. Identify your company’s needs and wants.

The leadership and decision-making team should review the current HR processes and system capabilities to determine the company’s needs and pain points. Also, if needed, the evaluation team can survey HR managers and employees too.

Some essential functions and features to consider are:

• Benefits management
• Compensation management
• Customizable interface
• Ease-of-use/good user-experience
• Labor management
• Learning management
• Mobile app
• Self-service portal

3. Conduct a budgeting exercise.

Begin with a baseline range for your budget. Further, include breakouts for software, hardware, implementation, and support. If you’re using a SaaS solution, you won’t need a hardware line item. However, the software line item will be priced as a monthly subscription typically.

4. Begin your research.

To begin with, go to trusted sites and sources for recommendations and gather data about HRIS solutions, vendors, and capabilities. Then, select three to six options to submit a request for pricing (RFP).

5. Issue an RFP.

An RFP should include information about your company, such as employee makeup, your locations, and other requirements and specifications. Also, and more importantly, the RFP should ask the vendor for system and service information like:

• Features and functionality
• Pricing
• Contract sample
• Customer references

6. Determine the shortlist.

When you’ve received your RFPs, see how and if they meet your requirements. Which two or three have come out on top? To those that have made “the list,” invite them to continue the selection process. For instance, request a demonstration.

7. View demonstrations.

Demonstrations are a great way to see a solution in action. But to make the most of them, gather the team’s questions or use cases beforehand and send them to your prospective vendors. In effect, this package will help your candidates tailor a demo to meet your specific requirements.

8. Check references.

If possible or as needed, ask your prospective vendors to set up calls or meeting with their references. It’s helpful to hear their first-hand experiences with each system.

9. Choose your HRIS.

Finally, after you’ve researched, tested the solution, and checked references, it’s time to make your choice. Good work.

12 Best HRIS Systems [2021]

Now that you know the process of choosing an HRIS, we’d like to provide you with a list of the top 12 SaaS solutions we recommend (in alphabetical order).

1. ADP

ADP offers payroll services, HR software, and tax and compliance services for businesses of all sizes.

2. Ceridian

Ceridian HCM, Inc. is an American provider of human resources software and services to organizations with employees in the USA, Canada, Europe, Australia, and Mauritius.

3. BambooHR

BambooHR is an online-based human resource software service developed for small and medium scale businesses. With BambooHR, you can perform all the essential human resource functions, such as employee data and information storage, payroll management, and recruitment processes.

4. Bob

Bob is a people management platform that helps fast-growing companies bring out the best in their employees. This HR software is unique, intuitive, and smart.

5. ClearCompany

ClearCompany’s HR software uses best practices to deliver better hiring experiences, seamless onboarding, effortless performance, and talent management and goal alignment. See how their solutions can help your company.

6. Freshteam

Great recruiters know how to find great candidates. It’s all the other things with which they need help. That’s why they built Freshteam—an applicant tracking system.

7. Gusto

Gusto is a great HR platform that combines payroll, managing benefits, human resources, and compliance features into a simplified package. It has won the 2017 Selection Award and the Supreme Prize for the same year. Designed for small businesses in the United States, Gusto enables these companies to become aware of their workforce’s basic human resources needs.

The app also offers a robust set of pay features, a user-friendly interface, and innovation and automation features impressed by experts. In addition, companies can use it at a reasonable price and tailored to their exact needs.

8. Namely

Namely is the only HR, payroll, benefits, and talent management platform your employees will love. But, it’s more than HR software: It’s the compliance and benefits consulting you need.

9. Rippling

Automate your HR and IT with Rippling. It lets you effortlessly manage your employees’ payroll, benefits, devices, apps, and more—in one place.

10. Sapling

Sapling streamlines the onboarding process and elevates the employee experience so that HR can better support teams to do their best work.

11. Workday

Workday, Inc. is an on‑demand financial management and human capital management software vendor.

12. Zenefits

Zenefits is an online platform that offers human relationships services and software to small and medium businesses. Its goal is to provide a platform that helps eliminate the stress and complexity of managing human resources for the company and its employees without spending much on their limited resources and supporting complex payroll management processes. Key features include Business Intelligence, Employee Directory, Insurance Benefits, Payroll Synchronization, Customer Service, Employment and Installation, ACA Compliance, Mobile Device Optimization, and much more.

How Vendr can help with your HRIS

Because a modern business has a constantly changing tech stack, it makes it increasingly difficult to onboard new employees and offboard exiting employees. Not to mention, it’s difficult to get them the tools they need to succeed and keep your business secure.

To meet these challenges, Vendr provides the HR workflows you need.

• Control and view the status of all on and offboarding processes so you can monitor the process in real-time.
• Setup onboarding processes so new hires have all the software they need to be successful on day one.
• Securely offboard employees from the data and tools to which they have access so you can maintain data security and integrity.
• Provide smoother processes and simple access tools so you can increase employee satisfaction.