Chapter 11: HR Analytics

44 Human Resource Information Systems

As we have seen throughout this book, technology is increasingly influencing HR processes.  The advent of relational Database Management Systems and database management/programming in the mid-1980s, has helped HRM evolve from manual, transaction-based bookkeeping to semi-automating HR processes. A good example is the onboarding process, which can now be individually tailored and automatically triggered by the data points obtained in the recruitment process. For example, new recruits with experience with a specific POS (point of sales software) will not be included in the software orientation session but, because they have never worked in a team environment before, they will be included in the session on teamwork. Twenty years ago, such precise customization was unthinkable.

Today, every HR process has a technological element that enables it. Take a simple recruitment scenario for example. A job posting can generate hundreds of applications. All of the CV’s received are housed on a server somewhere and recruiters spend countless of hours screening these CV’s to decide which applicants should be interviewed. This scenario is representative of a typical HR process: information is used to make decisions. Now imagine, if there was a way for you dig into the database and look at the decisions of each recruiter to see whether they are consistent in their evaluation of the CV’s. Imagine being able to detect that one specific recruiter tends to become more lenient as the day goes by, as she gets tired. Or that another recruiter has a slight bias against applicants that graduated from the Université de Sherbrooke (his ex-boyfriend went there; it’s a long story but let’s just say that there is still a grudge there…) or, more problematic, that a recruiter is less favourable to applicants with Asian-sounding names. If you think of this scenario, all of the information used to draw these conclusions is available: Content of the CV’s, the decisions of the recruiters, who made these decisions and when, etc. A very motivated HR manager could input all of this information into an Excel sheet and manually extract meaning out of this data. However, to do this efficiently, there needs to be a way to have the data already collected and organized. This is what a Human Resource Management System (HRIS) does.

Basically, an HRIS helps companies organize and manage people-related data. Because all this information is housed in one location, it serves as a single source of accurate data and often allows users to create reports that can be used to identify trends and make business decisions. Using an HRIS, HR managers can, in just a few clicks, find out the average salary of junior sales associates in the Granby store, who was the last employee promoted in the Saskatoon plant, how many times employees consulted their performance feedback reports, or how much was invested in leadership training company-wide in 2020.

A human resource information system (HRIS) system is an expensive and time-intensive commitment for any organization. Therefore, organizations should do their due diligence and involve the appropriate stakeholders in the evaluation and selection process of the HRIS. Many HRIS choices are available at different price points providing different levels of functionality. The cost for HRIS is based on various pricing models. Some are based on the numbers of employees and the price varies between $1 to $20 per employee each month. Other systems are based on ‘users’, which are defined as the employees that actually use the system, mostly HR managers.

Given the importance of the choice the employer is making, the package selected should meet its current needs and have the flexibility to grow and expand with the organization into the foreseeable future. However, constraints from budgets, hardware and time will affect the choice made. Following is a framework for making the best choice possible for the organization.

Here is an article that lists the top HRIS on the market at the moment

Benefits of HRIS

There are many advantages to adopting an HRIS system. Here are the main ones:

Organization: An HRIS allows for information to be easily collected, tracked, updated, and searched.

Compliance: An HRIS will stay current on regulations impacting HR and adapt the software to make it easy for organizations to meet compliance requirements, if for example, the government were to change

Time Savings: Many HR processes are made quick and simple with an HRIS. For instance, employees can ask for time off using the mobile application and manager can approve it in seconds the same way.

Employee Experience: A HRIS can help improve employees’ perceptions of their organizations. Whether through a smooth and quick onboarding process, an app that allows employees to look up a coworker’s contact information, or the ability to update and request time off, a good HRIS can help employees have a better experience.

Convenience: Most HRIS now are multi-platform and managers have the ability to pull together a report in only a few clicks on their phone.

HR Strategy: With fewer operational tasks to manage, HR managers can spend their valuable skills and time on strategic HR initiatives that improve business outcomes. Improving retention, increasing productivity, and monitoring the company culture are just a few ways HR can spend their time when they have an HRIS.

License

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Human Resources Management - Canadian Edition by Stéphane Brutus and Nora Baronian is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.