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Is a workforce management system necessary?
We’ve got a 45-person company and our executives were tossing around the idea of implementing a HRIS/workforce management system. Are these systems worth the time and money to implement and train your team? I’m assuming we’d need payroll, time & attendance, talent management/ applicant tracking, performance management, and scheduling modules. What do you think? Has your HRIS system helped improve the HR processes in your organization?
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7 Answers
Ashley:
It's definitely worth looking into, and I'd guess also worth the eventual investment. Mark gave you some of the tools. Contact the companies and ask them the same question you asked here. Listen carefully for reasons that make sense to you - not just a sales pitch.
These tools are scalable and you can usually opt which modules you want to buy so you can start small and add more capability as you need it.
I think you'll also find that using a HRIS/HRMS may point out gaps in your current tool or process.
It definitely depends on how your company will benefit. The first thing that comes to mind is, "What does the future hold?" Will you be growing in headcount in the future? It'll be easier with fewer employees now and most HRIS systems will grow with you.
What are your expansion plans? If you expect to remain at 45 people, I'd suggest that your ROI study is going to turn out negative.
Most HR processes just aren't that complicated to administer in small organisations and the costs of implementation aren't going to be recovered for a good while if ever, and this includes SaaS.
If you are looking at major expansion in the near future, then I'd start looking at early implementation as a possible way to support a cheaper adoption cost for future users.
All in though, I've done 4 HRMS implementations in my life and none of them in companies with less than 2/300 staff, as I couldn't find a sensible business case for those with less. And I've tried, I like automation, mainly because I'm lazy and reporting is easier.
Hi Ashley,
You're pretty small to be considering an HRIS - but....
For what you're looking for, Ultimate Pro, Kronos, Sage, and ADP Workforce Now are some of the big players.
You'll want a "SaaS" system - which all of these provide.
Mark
Ashley,
HRIS means process improvement.. this worth implementing no matter the employee size especially the case at hand (45 person).
It's a worthwhile business decision, pick best suited package in term of cost.
I agree it is worth looking into. I would suggest also doing ROI analysis as well as cost benefit analysis. The size of your company is one consideration but also the type of company (service, manufacturing, office/plant/outside work, etc), how you intend to use the product, cost of the product, predicted savings or efficiencies to be realized are all important.
If you have never done this before work closely with your in-house finance people (you should do this anyway). Their functional skills will lend credibility to the effort and also save you a lot of time.
Good luck.
Ashley - I think going for an HRIS is always better when you are small. The processes are clear to all the team members and management and its easy to implement the systems and processes. When you intend to / start growing this will definitely a boon to you, coz all the process are streamlined and you can do a lot of analysis on the data that has been captured in the HRIS. The analysis which you will be doing at that stage will be accurate and more scientific.This when you actually start seeing the ROI.
As always - "When I dont take the risk and invest (means), how can I enjoy the fruits of the result (end)"
Vijay
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