Managing your people processes in the most efficient and effective way possible can be a make-or-break factor when it comes to attracting and retaining top-tier talent, improving productivity within your administrative functions, and offering the best employee experience, no matter what.
But, how can you do this without breaking the bank or involving too many complicated solutions throughout your organization? The answer is simple with comprehensive, easy-to-use HRIS and HCM systems.
Read on to learn how HCM and HRIS software can improve workforce efficiency across your organization, as well as where our team of senior-level consultants can fit on your team.
What is HRIS?
HRIS, or Human Resource Information System, is a software strategy designed to help organizations in any industry manage, maintain, and optimize their core Human Resources (HR) practices in a more efficient and productive way.
HRIS systems provide the technological capabilities needed to help customers manage people processes and essential employee data in a single software solution, meaning that instead of spending unnecessary time trying to transfer data between teams and systems, HRIS users can easily and efficiently access everything they need under one roof.
With a functional HRIS system, HR professionals can…
- Use predictive analytics, reporting, and forecasting tools to make more informed decisions
- Cut labor costs and reduce the administrative burden through the automation of core HR related tasks and functions
- Stay up-to-date with compliance regulations and leverage monitoring capabilities to adapt to changing security measures within the software
- Leverage employee self-service tools and user-friendly interfaces to simplify HR functions and enhance the user experience
- Integrate HR management tasks, like Payroll, Recruiting, Benefits, and Time Tracking, into a single solution and offer seamless connections between other ERP systems
Key Capabilities of HRIS Software
1) Payroll Management
Ensuring employees are paid accurately, on time, and with the correct deductions is one of the most important factors in any organization, but that’s often easier said than done without a Human Resources Information System to help.
HRIS systems can not only help your company manage payroll more accurately and efficiently, but they can also make it easier to make deductions, manage distributions properly, and ensure pay reports are filed punctually.
With the help of a functional HRIS solution, companies have the technical capabilities needed to minimize risks for non-compliance, reduce the likelihood of tax audits, and keep up with Fair Labor Standards Act requirements and reports.
2) Benefits Administration
Well-defined benefits administration not only ensures that employees don’t take advantage of or abuse benefits offerings, but it also provides proactive benefits management capabilities to ensure employee benefits directives are followed and compliance requirements are met, and employees are given the right opportunities to manage their own benefits.
HRIS systems simplify benefits administration by providing advanced monitoring tools and tracking capabilities to streamline past employee records, payments, and deductions, navigate Open Enrollment periods with better communication and collaboration between teams, and leverage self-service capabilities to optimize benefits administration across business units.
3) Talent Management
Optimized talent management strategies are essential in finding the right people for the job, managing employees in the most efficient way possible, and retaining top-tier talent in the long run.
With HR technology, organizations can utilize tools, like an Applicant Tracking System (ATS) or functional integrations with external career sites, to place employees with the right skills and competencies in the right positions and improve productivity and performance across different teams and areas of the organization.
And, since most HRIS solutions also offer advanced recruiting, onboarding, succession planning, and performance management capabilities, users can gain a more holistic view of their workforce and find better ways to optimize comprehensive talent management strategies.
4) Time and Attendance
With functional Human Resource Management Systems, companies can more accurately and efficiently manage time and attendance across their workforce, including the input of hours worked by each employee and the approval of hours by managers or company executives.
HR software provides the tools needed for companies to not only facilitate more efficient timekeeping methods across the organization, but also leverage straightforward, easy-to-use workforce management tools to manage employee attendance, keep track of absences, monitor vacation days and Paid Time Off (PTO), and ensure employees are paid correctly for their time.
HRIS technology simplifies compliance by providing updated information about changes in labor laws, regulations, or requirements to keep organizations “in the know” and offering functional reporting and analytics capabilities to improve compliance oversight across the board.
With better compliance analysis and oversight, companies can check and validate employee forms, hours worked, employee benefits, and more to mitigate errors that could result in non-compliance and reduce the hassle involved in completing, organizing, and storing employment forms, paperwork, and reports for audits.
What is HCM?
Human Capital Management (HCM) refers to both the broader set of people management strategies used to manage employees and their respective data and the type of technology used to process employee data, manage HR tasks, and create a more engaging user experience for employees in all areas of an organization.
With well-structured HCM systems, organizations can not only ensure the right kinds of employees are hired, but they can also engage, train, and retain employees for longer, adapt to changing workforce demographics and strategies, and increase the accessibility and transparency of their employee data throughout the company and beyond.
An HCM solution gives organizations the functionality needed to…
- Leverage scalable and adaptable cloud-based solutions to encourage growth and improve business value
- Replace tedious manual tasks with automation software to improve time to value and reduce administrative burdens and costs for your HR department
- Stay up-to-date with changing compliance requirements by using automated global and local compliance monitoring tools
- Provide the data management, analytics, and reporting capabilities needed for HR personnel to make better, more informed workforce management decisions
Key Capabilities of HCM Software
1) Recruitment and Onboarding
Keeping track of applicants, candidates, and employees throughout the recruitment and onboarding process is essential in ensuring you have the right people in the right places and giving new hires all the tools they need to be successful in their new role (and bring additional value to your organization from their very first day on the job.)
With Human Capital Management tools, your organization can simplify budgeting processes by keeping your current and historical payroll data in the same solution, improve communication and collaboration across teams and employees involved in the hiring process, and keep better track of candidates at all phases of the hiring process.
Most HCM solutions include Payroll Management in their suite of applications and tools, meaning that by uniting your HCM and Payroll systems in the same solution, your organization can support company operations more efficiently and decrease labor and payroll processing costs by keeping all data in the same solution.
Complex pay rules, unique pay scenarios across different company locations, and complicated organizational structures can make managing Payroll seem like an impossible feat. But, with a functional HR software solution, companies can leverage cloud-based capabilities to not only improve the accuracy of their payroll data, but also improve data security and reduce the time, effort, and money required to manage payroll functions in one place.
3) Talent Acquisition and Management
While HCM, HRIS, and HRMS systems offer similar capabilities for users, HCM software adds Talent Management capabilities that allow companies to acquire the right talent, manage employees throughout their entire employee lifecycle, and organize their talent to manage HR tasks in the most efficient way possible.
With an HCM system, organizations can take control of their own Talent Management operations, including storing and managing employee information in an integrated employee database, tracking employee performance and productivity over time, boosting employee engagement across teams, and improving employee retention over time.
4) Analytics and Reporting
When it comes to analyzing large amounts of employee data and gaining the most valuable and actionable insights from such data, leveraging a well-defined HCM solution can not only improve the quality of the data, but also simplify data analysis functions with better data control and more structured inputs for employees.
HCM software also makes it easier for companies to combine qualitative and quantitative data in one comprehensive solution, automate reporting functions for teams across the organization, and improve the accessibility, accuracy, and reliability of analytics and reports for HR teams.
So…How Are They Different?
While HRIS and HCM software does provide similar capabilities and advantages for customers, there are a few key differences worth noting…
1) HRIS systems provide more surface-level employee data, while HCM solutions offer capabilities that allow users to engage in more specific areas of the data.
2) All HCM solutions typically include all the features included in an HRIS system, but not all HRIS systems contain all the features of HCM software.
3) HCM software offers a broader scope and wider range of capabilities to manage, monitor, and optimize people operations and processes more efficiently.
4) HRIS is considered a tool used to manage people processes like Payroll or Benefits Administration, while HCM refers to the entire management system that covers all people management operations under its umbrella.
5) HCM solutions offer a full suite of HR Management applications and more comprehensive tools and capabilities than HRIS systems to keep more of your important people data under one roof (or, in this case, in a single solution.)
How Can We Help?
Whether you need help implementing a new Human Resource Management System (HRMS) across your organization, additional support navigating integrations between your internal HR solutions and external third-party tools, an extra hand conducting training sessions for your new HR system, or anything in between, Surety Systems is here to help.
Our team of senior-level Human Resources Management consultants have the skills and experience needed to lead you to success, regardless of the complexity of your organizational structure or the nature of your HCM project needs.
From a Workday consultant with extensive experience in HCM implementations to an SAP SuccessFactors Employee Central expert, an experienced UKG Pro consultant, and a functional Infor HCM consultant with experience in Global HR, we have the right people for the job!
Getting Started with Us
Interested in learning more about our HRIS and HCM consulting services? Ready to get connected with our team of top-of-the-line consultants?
Contact us today to get started with one of our top-notch HR technology consultants!