IceHrm Looking for an HR software for Your Company?
IceHrm IceHrm team write blogs and tutorials about using IceHrm efficiently to manage HR activities of your organization. Create Your IceHrm installtion here:

Is implementing HRIS benefits for your organization?

  Reading Time:

As a human resources professional, you can do a lot for your company, from reducing staff turnover to improving employee satisfaction. But if you spend all your time on operational tasks such as answering questions or tracking job opportunities, you'll never be able to take more strategic initiatives. The Human Resources Information System (HRIS), which is often described as a personnel management system, can serve in this scenario as a decisive instrument for giving companies a competitive advantage. It includes measurability, better data and information management, and also enables the measurement of key HR practices and their results in terms of employee productivity and business performance.

HRIS is generally adopted and implemented to achieve the following objectives:

Increase efficiency: HR automation reduces the reliance on paper-based data and information about employee data, facilitates time and resource savings by using online applications/forms created in a user-friendly interface. This improves the overall efficiency of the HR department and allows HR professionals to focus more on strategic decision-making and HR development functions.

Mutual benefit for management and employees: HR or HRIS automation facilitates system transparency, improves employee job satisfaction and enables management to proactively respond to personal issues.

HR as a strategic partner: When implementing HRIS in the organisation, the role of HR ranges from a simple support system or administrator to a strategic partner. Working in line with the corporate strategy, HR now plays a strategic role in achieving the company's objectives through effective human resource management and the implementation of best practices/interventions by HR to improve employee performance.

Evaluation of the cost and the benefits of HRIS

An HR cost calculation involves calculating the return on investment (ROI) of human capital, which typically includes an assessment of the benefits or positive outcomes and the costs or negative outcomes of HR initiatives/practices.

The assessment of the costs and benefits of HRIS can be performed using a variety of techniques:

Identifying sources of value for the costs and benefits of HR-led initiatives: This includes an assessment of the business environment, changing trends and the strategic direction of alternatives.

Estimating the timing of benefits and costs: This essentially involves comparing the costs and benefits of HR resources at different times or measuring the cost-benefit ratio of different programs conducted at different times. This plays a crucial role in the policy development process.

Identify sources of value for the costs and benefits of HR-led initiatives: This would include an assessment of the business environment, changing trends and the strategic direction of alternatives.

Estimating the timing of benefits and costs: This would essentially involve comparing the costs and benefits of HR initiatives over different time periods or measuring the cost-benefit analysis of different programs conducted over different time periods. This plays a crucial role in the policy development process.

Calculating the value of indirect benefits : Perquisites are the secondary benefits. This step helps to understand the influence of different factors on the probability of success of HRIS projects. By estimating the magnitude, the planning process can be better assessed. For estimation, the correct measure is first selected, followed by direct estimation, benchmarking and internal assessment. Benchmarking is widely used because it has several advantages. It allows for better risk management for large ongoing projects. The internal evaluation includes an assessment of the company's internal parameters. Again, data transfer is much easier and relatively inexpensive.

Methods for estimating the value of indirect benefits: These are generally estimated in dollars. It includes a calculation of the average employee contribution (AEC). AEC is determined by calculating the difference between an organization's net sales and the cost of goods sold, divided by the total number of employees. In short, AEC = (net revenue - cost of goods sold)/number of employees.

AEC is the average contribution of the organization's employees. It is a cost-effective technique for the organization. It helps HR professionals estimate their contribution to the organization. It also helps to assess individual differences and the rate of employee output.

Analysis of variance: Analysis of variance is one of the methods used to evaluate indirect benefits and can also be used as a measure of the evaluation process. It involves an evaluation of financial and operational data to identify and determine the cause of the variance. In project management, this technique can be very useful in assessing and reviewing the progress of a project, while maintaining budgetary control by evaluating the planned and actual costs incurred in a project.

What are the benefits of HRIS?

An HRIS (Human Resources Information System) can help you by automating many time-consuming processes in your human resources department, saving you time and money. And that's just one of the benefits.

This chart outlines the savings and other benefits that an HRIS could bring to your company using a hypothetical company and a hypothetical HR professional, Caroline. Using averages, we have calculated how much Caroline's time ($33/hour) is worth and how much the time of an average employee ($23/hour) in Caroline's company is worth. From there, we break down the numbers.

Automated boarding

First we calculated the effects of an automated boarding software. The traditional boarding process with all its paperwork and training takes about 11 hours per week for each new hire.

But automated shipping can reduce this time investment by up to 50%, which adds up when you consider the number of new hires in a year:

Automated boarding can also benefit your organization in other ways:

Engagement - When employees feel that their organization's integration software is effective, they are five times more likely to report a high level of engagement.

Employee Retention - Effective onboarding software increases new employees' confidence in their decision to join your organization and reduces revenue by up to 30%.

Performance and productivity - Effective embedded software reduces the time it takes to be productive by 33%.


Documents and forms are essential for any HR department, but finding all those signatures can be time-consuming, not to mention the headaches associated with lost documents or clogged signatures.

However, electronic signature software can save an average organization up to 40 hours of work per month. You can also save about $20 per document on printing and shipping costs for digital documents. These numbers add up as follows:

There are several other benefits of digital signature software:

Efficiency: Digital signature software reduces processing time for signed documents by 90%.

Employer Branding: The use of electronic signatures helps attract top talent, as 92% of young professionals prefer to work for an environmentally friendly company.

Time management

Without software to manage her free time human resources professionals have to track employee free time using a version of a manual chart. Not only is this process time-consuming, but there is also the risk that the organization may not be able to track vacation periods accurately.

Whether accidentally or intentionally, an average employee may take up to three days of unrecorded PTO per year if their organization does not have sufficient tracking capabilities. With an HRIS, however, you could eliminate the cost of unreported PPOs :

Other benefits of effective recreation management software include the following

Efficiency - Automated tracking of lost time helps you better manage employee absences, which cost companies approximately six percent of annual payroll.

High performance - When employees benefit from effective software to manage their leave, customer satisfaction increases by up to 10 percent.

Employee self-service

Perhaps the biggest waste of time in a busy week for a human resources professional is the incessant flow of questions from employees, whether it's managing benefits or changing personal information.

Self-service HR software allows employees to find answers to their own questions and manage their personal data. This relieves the HR department of a heavy load and can reduce the time spent on administrative tasks by 40-60%. This means about two hours of overtime per day:

Using an employee self-service system in your company offers even more advantages:

Efficiency - Employee self-service software enables the HR department to serve 10% more employees.

Competitive advantage - self-service improves the performance of your company,

which increases the chances of those who own such software by about 50% to reach "best-in-class" status.

Performance and productivity - 72% of HR generalists who use employee self-service in their company reported a lower workload.

Total HRIS Savings

If you add up all the savings in time and money, the advantages of an HRIS are obvious. But it's not just a question of time and money. An HRIS frees human resources professionals like you from day-to-day worries and helps you play a more strategic role in your organization. Start managing your revenue, increasing engagement, creating culture and more with the right HR software at your side.

4 tips for conducting a cost-benefit analysis of an HRIS solution

Cost-benefit analysis is today a basic requirement for business planning. Before you make a business decision, you need to evaluate the costs of the measure and the benefits of the solution under consideration. You will compare them with other action plans and try to determine the best way to proceed.

This applies both to the decision to offer a new service, open a new site or acquire another company and to the introduction of new software. All of these decisions affect your business and therefore deserve careful consideration.

If you are considering implementing an HRIS, you will probably want to conduct a cost-benefit analysis. Here are some tips that may help you get the most out of this strategic exercise.

1. Don't forget to include the total cost

It's easy to get distracted by the "price" on a quote. It's also easy to forget that the cost of implementing the software is more than your monthly subscription or even the cost of training and setting up your new HRIS solution.

The cost may also include downtime during system installation, as well as any loss of productivity that your employees may experience while learning the new program during their training. Finally, have you considered upgrades to other technologies that you have had to implement to support the new HRIS system? All of these items should be included in the costs.

2. Estimate the value of benefits

The benefits of an HRIS solution are many and varied, so consider implementing or upgrading your current solution. Benefits such as efficiency and time savings are standard.

The benefits of a new HRIS can be difficult to convert into dollar value. How do you measure "efficiency"? How much have these new implementation processes saved you compared to the old ones?

You need to ensure that you reasonably estimate the value of the benefits. This is the key to conducting a thorough cost-benefit analysis of the system. Remember to ask for reasonable estimates. If HRIS saves your HR team that many hours, you can convert that into a dollar figure. It may be more difficult to convert a benefit such as "better vacation management" into dollars.

3. Asking for help

When conducting cost-benefit analyses, you should always work as a team.

Why is it so important to involve more than one person in this task? For a start, it is always good to have someone to check your calculations. You may see errors that you do not see by chance.

Another reason is that they can bring a new perspective. You might bring in part of the IT team to assess the value of the new system or the cost of upgrading your hardware to support the system. The HR manager or business owner may have different ideas.

4. Evaluate the project in relation to other ongoing projects.

You are not conducting the cost-benefit analysis of the new HRIS solution in a vacuum. There are other projects that are applying for funding from companies. Your task is to show that HRIS is a worthwhile project for the company and in which you should invest.

For this reason you need to be sure to compare and contrast with other projects competing for budget approval. You can also compare the project with other previous projects, which may indicate that the savings are similar to a large improvement you have recently made in another department, or that the cost would be about the same.

When you conduct a thorough cost-benefit analysis of an HRIS solution, you should be able to demonstrate its value to your business. These tips can help you prepare a better analysis.

If you’re looking for an automated Human Resource Management system, we suggest you IceHrm which is one of the best HRIS systems which has so many HR functions automated into one system.

IceHrm is a Human resource management system for small and medium-sized organizations. This HRM software centralizes employee data and allows only one authorized person to access it, providing a high level of security. The presence module monitors employee time based on information about insertion and perforation. It covers all the basic HRM needs of a company such as Time Management, Training, and Development, Attendance Management, Expense management, leave management, Recruitment management and handling employee information.

New HRIS trends

The last decade has brought an avalanche of changes in the human resources industry and in particular in human resources software. The rise of artificial intelligence....

How HRIS benefits Remote workers

The possibility of working from a distance has always been an attractive concept and the number of employees working from a distance has increased rapidly in...

IceHrm   Create your IceHrm, installation today.