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5 signs your company is ready for an HRIS

Does it feel like it's the proper time for a transition to an HRIS? Wait, you don't know when this time comes? Here are five signs that indicate you should start looking for employee management software.

Alexandros Pantelakis
Alexandros Pantelakis

HR content specialist at Workable, delivering in-depth, data-driven articles to offer insights into industry and tech trends.

Imagine an HR manager – let’s call her Emma – at a rapidly growing tech startup, is swamped with manual tasks. She spends hours on data entry, struggles with error-prone payroll processing, and juggles time-consuming recruitment processes. 

To name a few, tracking employee attendance and managing leave requests are chaotic, leading to payroll discrepancies. Performance reviews are a logistical nightmare, and ensuring compliance with labor laws is increasingly stressful. 

Overwhelmed, Emma is in dire need of a solution to streamline these burgeoning HR responsibilities and remain productive.

Emma noticed all the signs and now she’s ready to suggest to her employer to start utilizing an HRIS. It’s about time.  

5 signs your company needs an HRIS

A day at work for an HR professional is filled with numerous mundane tasks, as they try to fit all the processes into an 8-hour day. A new company may not have the resources to support a team only for the human resources tasks. 

Fortunately, we live in a world where technology can lighten the burden and support the company in many different ways, leaving space and time for your HR personnel to focus on more important tasks that will make the difference in your employee’s life.

As an SMB employer, you need to ensure that while you are growing, you remain compliant, competitive, and ready for any turbulence that may upset your plans. 

Let’s delve into the list of five important signs that are calling your attention to take the next step for your company. 

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“I can no longer do all the manual work”

In the contemporary workplace, dependence on manual HR processes emerges as a significant barrier to operational efficiency. 

Picture a scenario where mundane tasks such as tracking attendance, managing leave balances, and conducting performance reviews become burdensome. 

According to McKinsey, 50% of HR work can be automated in today’s age.

The implications extend beyond mere inefficiency, they manifest as heightened operational costs and a hampered strategic focus for HR professionals. Hence, witnessing an increase in labor costs and a consequential decline in overall productivity.

“I hate paperwork, but it’s important”

The intricacies of handling employee data manually pose multifaceted challenges, from ensuring accuracy to meeting compliance requirements. 

According to a recent survey, 31% of HR managers say they need better employee data protection.

Implications of manual data entry, facing compliance issues during audits and raising concerns about data security and legal implications are only a few examples of it. 

In this context, an HRIS becomes a crucial ally, navigating through complexities, and ensuring not just efficiency but also data integrity and compliance adherence.

“I need to be sure that I’m truly compliant with regulations and laws”

Navigating the evolving landscape of compliance stands as an enduring challenge for HR professionals. 

Consider DEF Corporation, where manual tracking of employee certifications led to non-compliance with industry standards. 

The repercussions extended beyond financial penalties to a compromised reputation as a responsible employer. 

In the last 12 months, 40% of business and risk leaders surveyed by PWC reported that their organization has enhanced its risk management strategy to ensure stronger compliance with regulatory standards.

An HRIS isn’t merely a convenience but a strategic necessity, safeguarding against compliance risks and fortifying the foundation of responsible HR management.

If your company is based in the US, then here are some regulations you have to follow:

Companies up to 15 employees

  • Fair Labor Standards Act (FLSA): Minimum wage, overtime pay, recordkeeping, child labor standards.
  • Equal Pay Act (EPA): Equal pay for men and women performing the same work.
  • Occupational Safety and Health Act (OSHA): Workplace health and safety regulations.
  • National Labor Relations Act (NLRA): Right to organize, join unions, and bargain collectively.
  • Immigration Reform and Control Act (IRCA): Prohibition of hiring illegal immigrants and mandate for employment eligibility verification.

Above 50 employees

Includes all regulations for up to 15 employees, plus:

  • Family and Medical Leave Act (FMLA): Up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons.
  • Affordable Care Act (ACA): Employer shared responsibility provisions (providing health insurance coverage).
  • State-Specific Laws: Some states have additional requirements like paid family leave, health insurance mandates, etc.

Above 100 employees

Includes all regulations for up to 15 and above 50 employees, plus:

  • EEO-1 Reporting (Equal Employment Opportunity): Annual reporting of employment data categorized by race/ethnicity, gender, and job category.
  • Worker Adjustment and Retraining Notification Act (WARN): Requires employers to provide 60 days’ notice in advance of plant closings and mass layoffs.
  • Affirmative Action Programs: Certain federal contractors and subcontractors must develop affirmative action plans.

Additional considerations

  • International laws: If operating globally, different thresholds and regulations may apply in each country.
  • Industry-specific regulations: Certain industries may have additional regulations regardless of company size.
  • State and local laws: Often have different thresholds and additional requirements beyond federal laws.

Each country and each region (EMEA, APAC, etc) has its own rules and regulations that you have to be compliant with. An HRIS could take all the anxiety from you, helping you to stay aligned with laws and compliant.

“I feel like I’m losing time and money in the hiring process”

In the highly competitive arena of talent acquisition, the repercussions of relying on outdated recruitment practices extend far beyond mere statistics. 

Picture a scenario where time-to-fill metrics stretch indefinitely, and the cost-per-hire steadily climbs, characteristics that plague organizations entrenched in manual recruitment processes. 

This prolonged time-to-fill not only impacts the organization’s ability to respond promptly to business needs but also elevates the strain on existing team members covering vacant roles. 

The recruiting process has been altered by the use of AI, according to 63% of talent acquisition specialists. Additionally, 69% of recruiters claim that AI aids them in identifying superior candidates. 

These figures highlight that agility and precision are paramount during the recruiting process.

“Performance management is riddled with delays and inconsistencies”

In the intricate tapestry of effective performance management, manual processes often create a ripple effect across the entire organization, impacting not just quantitative metrics but the qualitative aspects of employee engagement and satisfaction. 

Picture a scenario where performance evaluations are not just labor-intensive but also prone to delays, resulting in a palpable impact on the morale of the workforce. 

The delayed feedback loop can lead to a perception of undervaluation among employees, affecting their motivation and commitment. 

Research consistently demonstrates a direct correlation between efficient performance management and increased employee engagement, a metric critical for organizational success. 

The stark disconnect faced by organizations in the absence of an HRIS is not just a missed opportunity, it’s a potential hindrance to talent retention, unrealized gains in productivity, and the fostering of a positive workplace culture.

“I need a solution ASAP”

You are at the right place. If you have at least one of the above challenges, then you are ready to search for an HRIS solution. You have many choices here, but we will suggest the best one. 

This is Workable. Beyond merely streamlining laborious manual processes and navigating the intricacies of data management, Workable emerges as a strategic partner in fostering a culture of agility and employee empowerment. 

Whether ensuring unwavering compliance, optimizing recruitment efforts, or enhancing performance management, Workable stands out as the comprehensive solution, providing organizations with the tools not just to survive but to thrive in the ever-evolving landscape of HR management. 

HR professionals across diverse industries find in Workable not just a tool but a transformative force, propelling organizations towards a future of streamlined and effective HR management.

As we navigate the complex terrain of HR challenges, consider this: Is your organization ready to transcend the limitations of manual processes, embrace data-driven efficiency, and position itself as an industry leader in talent management? 

The transformative potential lies within the strategic integration of an HRIS, and Workable stands at the forefront, ready to usher your company into a new era of HR management. 

The question remains: Will you seize this opportunity for advancement?

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