Business is now moving at a far rapid pace than it was five years ago. HR functions need modern technology that is flexible, social friendly, embraces change management and is available on-the-go on any device to enable their organization to perform better than its competitors.
In this age, information is travelling across people and hierarchies much faster than the earlier top-down approach. This makes it necessary for a business to adopt technology that helps in driving transparency in goals, policies and performance.
Over the past two years, Human Resources Information System (HRIS) and payroll systems have evolved significantly and are able to deliver amazing business benefits at a fraction of the cost of doing the same in Enterprise Resource Planning (ERP) systems. Today’s HRIS products leverage technologies like the Cloud, social networking, security best practices, third party integration and much more. This is in stark contrast to traditional systems, which have a very high cost to own, deploy, maintain and customize.
HRIS technology is increasingly becoming social as it gains mainstream acceptance. The entry of digital natives into the workforce has only accelerated this trend and we’re seeing interesting ways in which social media is leveraged across recruitment, internal communications, innovation projects and performance management.
The three major trends pertaining to HRIS are:
In recent times, cloud-based HR software has become quite popular. However, their acceptance is largely dependent on the stage the company is in. Very large organizations still prefer on-premise installed systems, which they can control within their security perimeter and integrate with other systems. The mid-market companies and SMEs are very warm to cloud-based systems as it helps them get the same benefit as a large enterprise at a fraction of the cost. Even at large enterprises, cloud-based software is now replacing legacy systems, and IT departments are focusing more on business RoI instead of technology RoI. It’s only a matter of time that acceptance of public and private cloud gains more traction with the larger Indian enterprises. It is already happening with companies like Workday and SuccessFactors in global markets.
The key qualifying criteria that an enterprise must look before signing up for HRIS are:
