While HRIS is commonly thought of as a tool that can help with organization and increase efficiency – and indeed it certainly is – it can also be a valuable resource that helps you protect your organization from lawsuits in many different ways.
Many companies inadvertently disobey laws and incur penalties due to ignorance of the laws or a failure to track required information. In other cases, companies fall victim to lawsuits for things that they aren’t necessarily guilty of, but they do not have any documentation to prove otherwise. In these cases, having an HRIS recording and tracking information can be very helpful.
Can Help to Track Employee Hours outside the Building
Failure to compensate employees for all hours worked is illegal. In the modern landscape of business, it is incredibly easy for employees to work off the clock for several hours, sending emails and performing other tasks using online resources. HRIS can be set up to allow employees to clock in remotely, so that they are getting paid for all hours worked and not setting your company up for legal repercussions while at the same time handling their business in the most effective way possible.
Makes It Easy to Attach Reasons for Non-Hire to Applications
When applications are submitted digitally and stored in the HRIS or ATS, it is much easier to flag the application with the reasons for non-hire. Having this documentation can be very helpful if any employee candidates try to sue the company for discriminatory hiring practices.
Performance Tracking Can Back Up Discipline
While it is possible to track performance issues and write-ups the old fashioned way, tracking these things using an HRIS is much easier and can result in a more complete picture. Whether employee performance is good or bad, it can be easily entered into a 360 degree review on a continual basis so that a clear representation of how the employee performed over time is formed. When disciplinary action is necessary, there is a provable track record backing the decision, rather than a few scattered notes.
May Make Termination Easier in Several Ways
As with disciplinary action, an HRIS can provide the back-up documentation to prove that a termination was based on performance, behaviors, and facts. Since terminations are a major cause of lawsuits, avoiding liability for terminations can save money and help to ensure that the business is not shut down. Additionally, an HRIS can provide a low pressure medium through which a terminated employee can express final thoughts, if it is set up in such a way.
Can Help with ACA Compliance
An HRIS can automatically highlight employees that are eligible for health insurance, allow employees to research and select their own plans, and can even capture and report all required information. This information can be difficult to dissect and properly handle when done manually. Relying on an HRIS can reduce the time spent on ACA compliance, while increasing the chances that all aspects of the law will be properly managed and decreasing the risks of penalties.