Chapter 11: HR Analytics

Human Resource Information System

As we have seen throughout this book, technology is increasingly influencing HR processes.  The advent of relational Database Management System and database management/programming in the mid-1980s, have helped HRM evolve from manual, transaction-based bookkeeping to semi-automating HR processes. A good example is the onboarding process, which could now be individually tailored and automatically triggered by the data points obtained in the recruitment process. 20 years ago, this 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 use 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 constant in their evaluation of the CV’s. Imagine being able to detect that one 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 or, more problematic, against Asian applicants. If you think of this scenario, all of the information used to draw these conclusion is available: Content of the CV’s, names of the recruiter, the decisions of the recruiter, etc. A very motivated HR manager input all of this information into an Excel sheet and 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 an 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 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, 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. 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 cost between $1 to $20 per employee each month. Others 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

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.

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DRAFT - Human Resources Management - Canadian Edition Copyright © 2020 by Stéphane Brutus and Nora Baronian is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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