HRIS Systems: 5 Ways Small Businesses Can Benefit from Them

December 23, 2018

It was once true that administrative departments like HR and Payroll were the last place you would expect to find updated technology. IT budgets have limits and HR is considered a cost center, so the emphasis and capital were directed toward product development and marketing.

Today, IT budgets still have limits and HR is still considered a cost center. But now, with innovations like SAAS and cloud computing, the money used for HR software goes a lot farther. It’s now possible for a small company to get the benefits from up-to-date advancements in HRIS.

Integrated Platform Managed by the Provider

One of the most prominent advancements in HR technology is the concept of HCM, or Human Capital Management. Behind HCM is the idea that employees should be served by an integrated system which brings in all aspects of human resources – from payroll to benefits, to scheduling and records. To put it simply, HCM means that information no longer has to be entered into different systems. For example, the hours that employees work no longer need to be entered into the payroll system and then entered into a separate benefit system. The information no longer needs to be shared across platforms, which helps control cost and the risk of errors. And since the system is managed by the HCM provider, your company doesn’t have to lay out capital for software licenses, equipment, or administration.

Better Administration

The laws surrounding employment and labor are changing faster than ever. For example, Massachusetts passed a set of laws this summer – the Grand Bargain – that scheduled changes in the state minimum wage at multiple points over the next five years, created a new state disability program, and changed the way that leaves of absence are administered. Massachusetts is an extreme case, of course, but other states are also making fundamental changes. These changes go beyond states as well. The Federal government has also been making changes, such as increasing the threshold for wages exempt from overtime. Even though the laws are changing, employers are responsible for complying – at the risk of often sizeable fines.

One of the greatest advantages of up-to-date technology is that it’s also up-to-date with current laws. Telling your HR manager that you no longer have to fear being out of compliance with updated laws is yet another worthwhile benefit from an updated technology.

Easier Data Analysis

Having all your employee data on one platform makes analysis much simpler. For instance, you can match attendance with business trends and change your scheduling as needed to meet the needs of your clients. The integrated system also makes it simpler to view the benefit enrollment choices your employees make, which can then make it easier to better tailor your benefits offerings.


If there is one word that describes the 21st century, it is “mobility”. Increasingly, people expect to have everything available online, from their bank accounts to their health records. It should come as no surprise that your employees have come to expect the ability to access HR and Payroll on their own schedule and in their own way.

Modern HRIS systems utilize mobile accessibility. HCM systems are designed with an employee portal that allows your people the chance to log into the system and do things like request time off, re-print their W-2s, and update their tax deductions. During open enrollment, your employees can review their options and complete their enrollment online without having to fill out and submit physical documentation. What a great way to empower your employees!

Long Term Cost Savings for the Company

Using updated HR technology for a small business no longer requires a large initial investment, but the benefits don’t stop there. Having a strong HRIS platform will increase the morale of your employees, giving them more energy to spend on building the company. The confidence that your employees have with HR and Payroll will also help retention. Once your company is no longer struggling to keep up with the day-to-day needs of an outdated system, you will be free to further develop your staff, provide better training, and work on employee relations and team building. You may even be able to offer new, innovative benefits like pet insurance and flexible scheduling. Once your company is no longer weighed down by outdated tech, your HR department will be free to fly.

For more information on how Commonwealth Payroll & HR can work with you on your strategic human resources planning, call us today at 877-245-1159.

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