Is compensation management becoming a sore spot for your growing business? Tools that helped you manage pay and benefits when you only had a few employees, like spreadsheets, quickly become impractical and need to be replaced with better methods. As your business continues to grow, compensation will only become more complicated to manage, so you need to upgrade your processes. But is there a solution that will evolve with your business as it grows? The answer is yes, and the solution is an HRIS.
The Compensation Solution
You may have heard of an HRIS before, but if not, it stands for a human resource information system. This system streamlines the processes that your HR department needs to manage on a day-to-day and long-term basis. An HRIS can help your HR department track all aspects of compensation, like compliance, group benefits, and leave management.
Scales with Your Business
When you upgrade your company’s processes, you want them to continue working for your business for as long as possible. No business owner wants to invest money in a new compensation solution only to need to buy something else a year or two down the line.
A major benefit of an HRIS is that it scales with your business. The system you choose when you have 20 employees will still work when you have hundreds. While the monthly subscription fee will increase to accommodate your new employees, you’ll be able to keep using the platform you’ve come to know and love. There’s no need to purchase new software, learn how to use it, and transfer all your data to the new program.
Helps You Retain Employees
Retaining talented employees is essential for the success of any business since replacing your employees is both time consuming and expensive. To replace employees, you need to place ads for the positions, interview candidates, and train your new hires, and they’ll be less productive while they’re adjusting to their new jobs.
Inadequate salaries and benefits are the main reasons employees quit, so you need to carefully manage employee compensation to hang on to your staff. Managing your employees’ salaries and benefits gets more complicated as your business grows, but an HRIS simplifies the process.
No matter how many employees you have, your HR department can easily pull reports for average pay within your company and compare these figures to other companies in the market. Your HR employees can also track other areas of compensation, like your group benefits plan or vacation days, to make sure they’re helping you retain employees.
Streamline Benefits Administration
As your small business grows, managing employee benefits can become a major pain point. Signing up new employees for your group benefits plan, monitoring your plan’s usage, and ensuring compliance are all time-consuming tasks for your HR department.
An HRIS streamlines your company’s benefits administration. For example, instead of using inefficient paper forms to enroll employees, employees can be quickly enrolled through the platform.
When you have 20 employees, their questions may just be periodic distractions for the HR department, but by the time you have hundreds, their questions could bring the department to a halt. Your HR employees could easily spend their days performing repetitive tasks like explaining what your group benefits plan offers or updating employee data in the system.
An HRIS helps your employees resolve their own minor problems. They can change their own addresses or phone numbers, without needing to see HR. If they want to learn more about your benefits package, they can pull up the information on their computers. When employees manage these basic tasks on their own, HR has time to focus on recruitment and other tasks that can grow your business.