How Your HR Systems Can Improve Your Bottom Line
December 10, 2012 at 10:40 AM
If you really want to get the most out of your HRIS (Human Resource Information System) software, you need to see it as more than a data storage system. Although, it does a great job of tracking lots of employee data in one easily accessible location, there is another aspect to your HRIS software that can make it even more valuable for your business. That is its reporting function.
You've streamlined your input of employee data by implementing the use of HRIS software. At the same time, you have created a very powerful tool for pulling employee information out of your HR system for use in making better informed business decisions.
How HRIS Can Help
Let's look at some ways you can utilize the personnel data in your HRIS software to directly improve your bottom line.
- Full employee cost calculations. The cost of an employee to a business goes far beyond their wage earnings. There are employer taxes, benefit costs, worker compensation costs and paid time off (PTO) costs that are all part of an employer's true cost of each employee. Knowing exactly what each employee costs the business can be an important piece of information.
- Benefit analysis. There are many situations where an employer may need to know the cash value of the benefits, they are providing to their employees. Health insurance contract renewals are another time when an employer will want to be able to compare the effect of switching to different plans. Having your employee benefit information available through your human resource system can help management make decisions based on accurate information.
- Cost of PTO. Paid time off is a popular benefit to provide your employees, but it can be a benefit which has a somewhat hidden cost. Your HR system has the ability to easily how much paid time off has been accrued and used throughout the year.
How HR Scheduling Software Can Help
All these benefits can be realized when using efficient HRIS software to manage the personnel records in your small business. If you opt for HR scheduling software, you’ll also be able to reduce overtime and find out the estimated cost of your workforce.
- Reduce overtime costs. Being able to input the required number of employees that need to be scheduled for each shift and for each location will help to make sure you don’t have too many or too few people scheduled at any given time. Scheduling against a required number of employees needed helps you schedule just the right amount of staff.
- Review costs analysis. Keeping an eye on your overtime costs can be very important for a business manager. A proper analysis of the overtime hours being worked and their cost to the company can help a business to decide when it becomes more beneficial to hire another employee instead of paying out overtime to existing employees.
These are just some examples how HR systems can help improve the bottom line at your business.
With several different HR software solutions to choose from, you're sure to find the one that's best suited for your company. Start by trying a free demo/trial of Staff Files, our popular PC-based human resources software.
Have questions about our software? Call us at 1-800-874-8801 or email us at firstname.lastname@example.org.