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In the fast-paced world of business today, a small or medium-sized business can become a large enterprise practically overnight. If your business uses Excel spreadsheets and manual processes to keep track of employee data, growth can sometimes spell disaster as information gets misplaced and reports remain unfiled.

Fortunately, many signs indicate that your business is getting too large to rely on piece-meal systems. If any of the following factors ring true, it means you should start thinking about HRIS.

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1. It’s Difficult to Identify Top Performers

In small organizations, it’s easy to identify top performers. In larger organizations, many employees contribute  to the results, so it’s necessary to rely on reports and statistics to identify top performers. If it’s a difficult process to determine who your top performers are, this is a clear indication that your organization would benefit from a HRIS.

2. There Is No Easy Way to Compile Reports

Reporting is very important for ensuring compliance and making educated business decisions regarding your human resources on a daily basis. When there is little information to compile, it’s possible to use manual systems and spreadsheets. However, when your organization reaches a point where it is difficult to glean relevant data, it is time to consider implementing an automated system.

3. Hiring New Employees is a Time Consuming Process

Posting job advertisements, accepting applications, submitting offer letters, and onboarding can be arduous tasks when they are done manually. If you only need to hire a new employee a few times per year, this may not be a problem. However, if you find yourself hiring new employees at least once a month, a HRIS can streamline each step of the hiring process and save countless hours and labor dollars.

4. It’s Tough to Compare HR Data to Competitors’ Data

Your HR data can be a valuable tool for gauging the effectiveness and prosperity of your organization against your competitors, if it is easy to compile that data. If it takes hours to gather pertinent HR information for comparing it to similar competitor data, an automated HR system may greatly benefit your organization.

5. Identifying Skills Gaps and Training Needs is Difficult

Skills gaps can harm your organization’s productivity and sour relationships with clients. In small organizations, it’s easy to identify skills gaps, as there are only a few employees. However, when an organization reaches a certain point, it is very important to have a streamlined system that charts and tracks employee training. Then the skills gap can be readily identified and rectified.

6. Delegating Projects to Skilled Employees Takes Time

Along with identifying training needs, tracking training and skills through a HRIS can make it easier for you to see which employees are qualified for certain  tasks. In some systems, it may even be possible to delegate those tasks immediately, using the HRIS. This is a function that can even be useful to smaller organizations, but it becomes ever more necessary as the company grows.

If you think a HRIS could potentially benefit your company, we can help you figure out the vendors that would best fit your needs. Visit our vendor match page to begin.

Authored by: Dave Rietsema