The importance of a fully functional HRIS in your business

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These days whenever “HR” is mentioned in a conversation, whether it is between two employers, employees, students or members of the general public, the default definition/opinion is “the person who hires and fires people”. Not the most accurate description, right? Now let’s add “Information System” to form a fancy abbreviation called “HRIS”. Sounds good, but why have an information system for the “hiring and firing of people”? One of my fellow colleagues always said: “HR is no longer a person… It is a Department”. Our departments need certain software/systems to run efficiently, do you agree? Having hard-copy files for every single employee, filling in forms manually, and printing out documents is so 2016! Nowadays, you can almost do anything from your own personal smartphone. So, the software for your HR Department is called the “Human Resources Information System” and here is why you need it:

The biggest motivating factor for implementing an HRIS system, is to gather data and use it efficiently. From gathering data, you can start identifying trends within your company. Trends help you to plan, prevent, predict and structure your operations in a way that is efficient. With the help of a HRIS system, you are in a position to:

1. Formulate and analyze reports

  • How often do people take sick-leave due to illness on Mondays & Fridays and what is the ripple effect on your productivity as a company with regards to operation-time lost?

2. Monitor progress/productivity of employees

  • Measuring output vs input

  • Cost of operations vs cost of training

  • How effective does an employee/manager work

3. Make important decisions regarding your workforce

  • Recruitment strategies

  • Promotion opportunities

4. Accurate structuring of an Organogram

5. Assist in drawing up succession plans for positions

  • Looking at succession plans for each occupational level

  • Promote from within, rather than recruiting externally

6. Manage the projected growth for the future

  • Identify trends within your own company – staff count might be doubled in 2/3 years’ time.

  • Put the necessary action plans in place, so that you try not to be caught off-guard as far as possible.

  • Optimizing your profitability as a company

7. Tracking of accurate employee data

  • Measuring performance on an annual, biannual or monthly basis

  • Draw up Personal Development Plans, so that they can move along with the employee in the organization (if you grow as a company, your employees will grow).

8. Provide much needed support to your HR Department.

  • Operate efficiently

  • Focus more on the implementation of strategies, than putting together spreadsheet upon spreadsheet’s reports.

With all of this being said, you should also remember that “what you put in, is what you get out”. People often rush the implementation process of a HRIS system, because everything should be automated and available at the press of a button. That is correct – yes – but if a system is not set up according to your specific needs, you won’t be able to press one button and have a report that you need.

The important thing is to ensure that the productivity of your HR Department is improving daily. A HRIS system, assists you in the gathering, analyzing and interpretation of data, which leads to identifying trends, which lead to different courses of action to be taken to ensure you run a productive, efficient and successful company. You need to manage your employees at the end of the day, as they are your most valuable resource. Without employees, a lot of companies in various sectors won’t be open for business today. A HRIS system, can help you manage your human resources within a company and it replaces the manual processes for operational control and employee relations.

A HRIS system also links up with payroll and the basic functions like:

1. Managing of Employee information

  • Personal details (Initials, Surname, ID, Contact Number, Language etc.)

  • Marital details (Spouse information, contact details etc.)

  • Bank Account Details (Account number, Bank, Income tax number etc.)

  • Emergency Contact details (next-of-kin)

  • Disciplinary records (number of written warnings, suspensions, dismissals etc.)

2. Managing of Company information

  • Centralized location for all company documents (notices etc.)

  • Policies and Procedures to be made available 24/7

3. Remuneration & Tax information

  • Link to your Payroll system

  • Monthly & weekly pay slips communicated electronically

  • Populate IRP5 forms

4. Performance Management

  • Conduct performance appraisals electronically

  • Keep record of all training interventions that took place

  • Monitor growth of an employee, month-to-month.

Please do feel free to head over to and see what LabourNet has to offer you as an employer. Our products are designed to make your life easier, by adapting to modern technology. I trust that you agree with me in saying that a HRIS system, is something companies – regardless of their size – really do need to look into, to un-complicate their lives and be able to pull data with the press of a button.

For more information on the above topic, please contact the LabourNet Helpdesk at

0861 LABNET (0861 522638).

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