listen to this articleThe COVID-19 pandemic has profoundly changed the traditional workplace, forcing employers and employees to adapt to unprecedented challenges and paving the way for more flexible and resilient work models. As remote work became predominant in the midst of the pandemic, human resources (HR) departments had to pivot and rapidly implement new technologies that allowed them to continue meeting the needs of their companies.
According to WFH Research, 12.7% of full-time employees will still be working from home in 2023, and 28.2% will be working in a hybrid model. Meanwhile, research from the University of Birmingham found that 73% of managers believe flexible working arrangements have increased productivity, and 60% of managers think the same about employees working from home. got it.
HR leaders say inadequate or non-existent technology and infrastructure for remote work is one of the biggest barriers to the success of this model. As remote and hybrid opportunities are here to stay, there is an opportunity to re-evaluate your current business processes, systems, and technology needs as they relate to supporting remote work for HR departments.
Overview of personnel system
Human resources systems store employee data electronically and support a wide range of human resources operations. Its core functions typically include payroll management, time management, reporting, and data analysis. Beyond these critical functions, HR systems serve as operational hubs that enhance employee communication and engagement, foster collaboration among team members, increase overall efficiency, and ensure regulatory compliance. Helpful.
There are three main types of HR systems that companies should consider, each with different features and benefits. It's important to understand the similarities and differences between the two to decide which one best suits your business needs.
- Human Resources Information System (HRIS)
A human resources information system (HRIS) covers all basic human resources functions and tracks current and historical data for each employee in one place. HRIS enables paperless benefits enrollment, tracks employee eligibility, and maintains an audit trail of enrollment activity. It also streamlines compensation management processes, enables workflow automation, and provides standard and customizable reporting options. Employees can use self-service features to update personal information and report life events. Paperless onboarding simplifies administrative tasks such as tax forms, direct deposits, employee handbooks, and other policy compliance documents. HRIS also provides easy mass communication capabilities to ensure effective employee engagement.Although HRIS is easy to use, understand, and maintain, several drawbacks exist. Security can be a concern because cloud-based platforms allow mobile access without network requirements. It also has limited customization and integration capabilities with other software systems.
- Human Resource Management System (HRMS)
A human resources management system (HRMS) incorporates all of the same functionality as an HRIS, but provides greater control over the human resources functions within a company. It also includes a payroll processing and time management system, with import functionality for payroll data entry. Additionally, an applicant tracking system for recruitment operations is also integrated. The HRMS also manages paid time off (PTO) for current employees, ensures Affordable Care Act (ACA) compliance, and facilitates annual filings with the IRS and states. HRMS security can still be a concern if unsecured mobile access is allowed. Some systems are cloud-based, while others are tied to a domain or network. Although HRMS is more customizable than his HRIS, it also has limited integration with other software systems. - Human Capital Management System (HCMS)
A human capital management system (HCMS) can be described as a “complete suite” of HR software that builds on the capabilities of HRIS and HRMS. In addition to the functionality provided by the other two systems, HCMS integrates performance management, goal tracking, and succession planning capabilities. It also includes pyramid tracking that categorizes roles based on job title, location, department, and function. HCMS supports global operations with multi-currency functionality, and its finance module enables seamless data exchange and collaboration between human resources and finance departments. HCMS has stronger security protocols than HRIS and HRMS because it is always associated with a domain or network and there are no security protocols. Mobile access. This system is also the most customizable option. Additionally, companies are responsible for all maintenance, upgrades, patches, and updates of the HCMS themselves.
Insights on price and value
The pricing and overall cost of an HR technology system is determined by several factors. Subscription-based systems, which are often cloud-based (SaaS), charge a monthly fee based on the number of users or employees, and the responsibility for upgrades and maintenance remains with the vendor. License fee systems, on the other hand, include on-premises servers, networks, or domains, with upgrades and maintenance managed independently by the company.
Implementation costs vary depending on the system selected and the cost of additional hardware requirements. Potential costs range from hundreds to thousands of dollars per user, with HRIS having the lowest implementation cost and HCMS having the highest implementation cost. Installation, setup, and consulting also add to the overall cost.
Be wary of systems that are available for “free” download. They often lack comprehensive functionality and may require additional costs for upgrades or other systems to fill the gaps. Companies may try to sell support, service, maintenance, or security features to offset costs.
When considering HR technology, be sure to consider the total cost of ownership beyond the initial price, which takes into account installation, maintenance, labor, hardware, and training. It's also important to focus on the potential long-term return on investment (ROI), as long-term use can lead to financial savings. The system a company chooses should increase efficiency, streamline processes, and be easy to use for human resources, managers, and staff.
Bambilyn Copeland is Senior Director of Client Services for Employee Retention Solutions, an RDG+Partners company. The company provides comprehensive solutions for payroll, employee benefits and retirement services powered by proven technology and streamlined boutique-level services to businesses throughout upstate New York. process. For more information, please visit: www.rdg-ers.com.
r
