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Masters in Healthcare and Quality Management Human Resources Final Project Presented to Dr.

Yolla Zaitoun Masri Friday, January 31, 2014

Analysis for the Purchase of Human Resource Information System (HRIS)

By: Ali H. Merii

Table of Contents
Introduction ..................................................................................................................................... 3 Why purchase an HRIS? ................................................................................................................. 3 Employee Database ..................................................................................................................... 3 Payroll ......................................................................................................................................... 3 Attendance ................................................................................................................................... 4 Time Collection ........................................................................................................................... 4 Training Management ................................................................................................................. 4 Performance Review Management and Compensation .............................................................. 4 Recruiting .................................................................................................................................... 5 Other services .............................................................................................................................. 5 How to purchase an HRIS? ............................................................................................................. 5 Define the HR software needs ..................................................................................................... 5 Create a detailed HR Software requirements spreadsheet ........................................................... 6 Determine the HR Software budget ............................................................................................ 7 Pick four or five HR Software vendors to review ....................................................................... 8 Time to View HR Software Demos ............................................................................................ 8 HR software implementation expectations & Price .................................................................... 8 Make the decision ........................................................................................................................ 9 References ..................................................................................................................................... 10

Introduction

The Human Resource Information System (HRIS) is a software or online solution used for the data entry, management, data tracking, and data information requirements of the Human Resources, payroll, and accounting functions within a business. Normally bundled as a database, many companies offer HRIS solutions and every HRIS has different capabilities. This paper will be looking into the different features that an HRIS provides and will serve as a guide for buying XYZ hospital a modern HRIS.

Why purchase an HRIS?


Employee Database
An employee database also known as HR database is the one feature that is common with all HRIS. Although they might vary on options they provide but altogether have a kind of employee database from which to start. The employee database likely contains fields for most of the information one has in an employee file. However, with that HRIS data available within a database, one has the ability to report and manipulate the data.

Payroll
Many of the available HRIS offer payroll as a preference. The companies who offer a payroll system can choose to benefit from a fully integrated package. The largest advantage of this option is that both the HR and Payroll data is controlled in a single system. Consequently, double input or transfer of data does not exist. 3

Attendance
Manually tracing attendance is a time consuming process for the HR departments that do not have an automated HRIS. Attendance systems will monitor accruals and offer automated growths to accrual proportions relative to seniority.

Time Collection
Earlier, most of the HRIS software companies did not offer time collection systems. They used to work with third parties and interfaces to implement data into their system. Recently, a number of HRIS software companies began creating their own softwares for tracking payroll time records. There are different ways to collect time data. The easiest is a basic online employee time sheet. The employee inputs the hours worked and sends the records. Some web-based systems act the same as a time clock where employees log in, clock in for the day, out for lunch and so on. The third option may involve the actual use of physical time clocks that integrate to a software application and to the HR and Payroll applications.

Training Management
Most, if not all, HRIS software applications provide the ability to track basic training data such as when someone took a class and when they are due to take it again. Industries such as healthcare are concerned in tracking far more training than others are. In addition, not only do they have to track when an employee were trained but must as well be retrained and charged how many CME or credits they need to achieve certification or program requirements. They may also have to track training required by Job Title.

Performance Review Management and Compensation


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There are few processes that are more time consuming and more difficult to standardize than the review process. These systems automate the process and reduce the paperwork associated with reviews. Managers will score employees based on a number of user-determined competencies. Based on the score, the body text under the competency can be automated as well. During the year, goals can be established for each employee. Then, employees and managers can track the success and progress of each goal before, during and after the review process.

Recruiting
Recruiting solutions have come a long way. Many of the online recruiting options offer the ability to link data to the web site. With this option, prospective applicants can apply for positions directly on the hospital web site. The advantage is that all of this data is contained in a database that can be searched to determine who the most qualified candidate is. A few systems take the process a step further by offering Applicant self-service where the applicant can setup a profile and actually monitor their stage of the hiring process.

Other services
ESS Employee Self Service, Manager Self Service, Email Alerts, Benefit Administration, Benefit Open Enrollment, Carrier Connect, Position Control, Succession Planning, E Forms, Government Compliance, Report Generation, and Customization.

How to purchase an HRIS?


Define the HR software needs
The most basic and first step to be done is to clearly state the needs from the HR software. The needs should be highly detailed. The more detail put into what is considered the 5

most important step of the process of selecting an HR software application, the more likely the decision made at the end is the right decision.

For example, a typical hospital might determine their needs for an HR software application to include the following: Windows based Integrated Payroll Training Management Turnover Reports ESS Salary Grades Job and Pay History Attendance and Accrual tracking Report Writing Ease of use

Create a detailed HR Software requirements spreadsheet


After detailing the software needs list, the next thing to create is a comparison table with these needs that will be used during the evaluation process. The needs are listed on the left side and across the top, the various vendors will be added. Furthermore, rows for the price, purchase options, and implementation time lines and costs, are added to further aid with keeping all the

systems separate. While evaluating each system, simply check off which meets each of the hospitals Human Resource software needs. Sometimes it is required to work with third parties to meet all the needs. The hospital could choose to work with only companies that provide requirements with their base systems. The issue with meeting needs using third party applications is how tight the integration is between the systems. If the systems are not integrated, one might have to work with interfaces or double input data into each application. If a vendor offers a third party product to meet a need or requirement, how the two applications will speak to each other should be checked.

Determine the HR Software budget


Before wasting time searching for a software application the HR department needs to determine how much they will be able to spend on a system. Involving other departments such as risk management, training, and accounting in the HR selection process and list of needs, could make it possible that their budgets can add to the amount to be spent for an HR software application. At the very least, involving other departments will highlight how an HRIS application will meet more organizational goals. When determining how much to spend, include a total as well as a monthly amount. Management may be more inclined to purchase an HR software application if the payment for such is not made all at the front end of the project. There are a number of HR software solutions offer hosted options; which means that the payment is per month per employee and they host the application on the web. Prices range from the $2 to $10 per employee per month and above. If hosting is not an option, the hospital could always lease the software for up to five years. In this 7

case, the initial payment is spread over that period and at the end of the lease term, only annual support is paid.

Pick four or five HR Software vendors to review


Now that the needs, requirements, and budget, have been defined, the hospital is ready to select the short list of HRIS software vendors to evaluate. The HR department only needs to evaluate those products they have the budget for and that meet their needs and requirements. This is not an easy task. As mentioned before, there are over 60 HRIS software vendors just in North America, and those are just companies offering HRIS. Adding all HR software, outsourcing companies and companies offering add-ons, multiply the above number by 100. There are a few ways to go about picking these companies; such searching the web, asking fellow HR personnel, or posting for recommendations on various HR message boards, forums, or blogs.

Time to View HR Software Demos


Either online or on-site demos with each HR software vendor are setup for evaluating. Having the needs table in hand and scoring each product on how well they meet the needs is the best way for evaluation. Vendors are going to show where their HR software is the strongest. Where their strengths lie may, or may not, match up to the hospitals needs. Make sure that in the demo the capabilities match the needs. Creating a brief set of questions for the vendor to provide answers to further concerns is also a method.

HR software implementation expectations & Price


When deciding on a software application, the hospital will want to know what it is going 8

to cost them. The cost for software and support are all going to be fixed costs. The only variable cost associated with an HRIS system install is going to be the implementation costs. Some vendors may provide fixed cost project costing but even these projects can run over budget if the scope of the project was not fully defined. It is extremely important that the scope of the project be defined in as much detail as possible.

Make the decision


At this point, needs and the vendors meeting those needs have been identified. The list of potential solutions continue to shorten based on price, capabilities and company strength. Now it is time to make the final decision. Based on everything done up to this point this is the easy part.

References
1.

Maier, C., Laumer, S., Eckhardt, A. & Weitzel, T. (2013) Analyzing the impact of HRIS implementations on HR personnels job satisfaction and turnover intention. The Journal of Strategic Information Systems, 22 (3), 193207. doi: 10.1016/j.jsis.2012.09.001.

2.

Laumer, S., Eckhardt, A., and Weitzel, T. (2010) Electronic Human Resources Management in an E-Business Environment. Journal of Electronic Commerce Research (JECR) (11:4), 240-250

3.

Kovach, Kenneth A., et al. "Administrative and strategic advantages of HRIS."Employment Relations Today 29.2 (2002): 43-48.

4.

Lippert, S. K., & Swiercz, P. M. (2005). Human resource information systems (HRIS) and technology trust. Journal of Information Science, 31(5), 340-353.

5.

Tansley, C., & Watson, T. (2000). Strategic exchange in the development of human resource information systems (HRIS). New Technology, Work and Employment, 15(2), 108-122. Chicago

6.

Haines, V. Y., & Petit, A. (1997). Conditions for successful human resource information systems. Human Resource Management, 36(2), 261-275.

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