Human Resource Information Systems (HRIS)

Understanding your needs and identifying solutions

Phil LambManaging Director

Contents

What is Software as a Service (SaaS)? And why does it matter?

What is HRIS?

Smaller firms have historically been more reluctant

Why do companies invest in these technologies?

Understanding your needs and priorities

Step by step approach

Making your case for HRIS

1

What is HRIS?

2

Employee Portal

Benefit Management

Demographics &

Compensation

Time & Attendance

Applicant Tracking

Performance Management

Workflows & Communication

Reporting

Low

Medium

High

Negative

Benefit Mgmt

~80%

Demo-graphics

~90%

Time & Attendance

~30%

Applicant Tracking

~25%

Perform Mgmt

~20%

Workflow

~20%

Value

Industry Lifecycle

HRIS is an evolving technology

Some functionality is widely utilized and highly valuable;

Other functionality is in early adoption phase

3

Estimated adoption rate

4

Case Study

Utilized paper-based enrollment process

Seeking more efficient enrollment process with fewer errors

Key HR data maintained on several systems, including excel files

Other departments (e.g., Finance) constantly requested reports

Client Profile: ~1,000 employees, 20 locations, based in Texas

Employees were able to learn about benefit offerings online

Open enrollment and life events managed online

Demographic data managed centrally

Permission based access and reporting functionality relieved reporting burden

Panelist Questions:1) In your experience, why do companies invest in an online enrollment/HRIS system?2) What types of companies are more likely to utilize a system (size, industry, other characteristics)?

Key BenefitsIssues

Online enrollment alone saves

$27.50 per employee per annum on

printing, postage and personnel (2)

Why do companies invest in HRIS?

Efficiency

Compliance, Litigation Risk

Communication

Necessity

The benchmark class for ratio of

employees to HR generalists

ranges from 141:1 to 318:1 (3)

Paper-based

communication

results in 40% error

rates compared to

5% in electronic file

exchanges

(1) Forrester Research, (2) Forrester Research (3)Best Practices, LLC (4) ReviewSNAP

50% of HR time is spent

processing employee information

and answering questions (1)

Only 45% of employees feel that

they receive adequate

communication from managers

and HR departments (4)

FLSA, FMLA, OSHA,

EEO, ADA, FICA,

FUTA, ADEA, health

care reform….

5

Who is investing?

Large firms have historically invested more in HRIS systems

0

5

10

15

20

25

30

35

40

45

No Yes, but no plans

This Year Yes in 1+ year

Not Expanding

Expanding Don't Know

Large (>500 ees)

Smaller (<500 ees)

Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009

But… new technological progress has driven down costs,making functionality available to smaller firms

6

%

Traditional Software On-Demand Utility

Build Your Own Plug In, Subscribe

Pay-per-Use

What is Software as a Service (SaaS)?

UC Berkeley, Strategic Computing and Communications Technology, Group D 7

Why does SaaS matter?

Smaller firms can now enjoy HRIS functionality

that only large firms could afford (e.g., PeopleSoft)

UC Berkeley, Strategic Computing and Communications Technology, Group D 8

Understanding your needs and priorities

• Standard Features

• Employee self-service

• Demographic information

• Benefit management

• Compensation management

• Time & Attendance

• Clock-in, clock-out

• Time sheet management

• Project-based timekeeping

• Time-off tracking

• Talent Management

• Web-based applicant tracking

• Communication tools

• Performance management

• Training/skills tracking

• HR Functionality

• Workflows

• Wellness programs

• Survey capabilities

• Advanced reporting

9

A step by step approach

Determine Needs

Establish a Budget

Interview and Evaluate

Develop Project Plan

Obtain Approval (ROI)

10

Making your case for HRIS

Cost Savings

Hard and Soft

Costs

Return on InvestmentDivided by

Cost savings and improved communication can be difficult to quantify, remember to factor in compliance and risk management

11