What HRIS Systems Are Best for Small Businesses?

When you’re looking for HRIS software to help run your business, there’s a lot to consider. It’s an important decision because this software will touch every employee in your company.

In this article, we’ll explain what HRIS systems do, their benefits, and how to find the best HR software for your business.

What are human resource information (HRIS) systems?

A human resource information system (HRIS) is software for HR administration that unifies various processes into 1 platform, including:

• Hiring
• Onboarding
• Payroll
• Benefits administration

HRIS systems for small businesses have evolved greatly over the years. While you can still find systems that will handle specific functions, the best HR software for small businesses is more comprehensive.

There are several benefits for small businesses when using an all-in-one HRIS system, including:

• Time savings. Automate tedious and manual tasks, which helps reduce errors and streamline workflow.
• Improved compliance. Automatically apply policies to ensure compliance with company and regulatory rules.
• Better organization. Everything involving employees is available in 1, cloud-based platform. This helps you avoid segregating data in separate folders, files, spreadsheets, or even systems.
• Improved employee experience. Using an HRIS provides self-service options for employees, giving them better access.

How to identify the best HR software for your small business

The 1st step in identifying the best HR software for your small business is to think about your needs. While every business needs to organize and manage its HR administration, small businesses have some unique concerns.

So, what does the best HR software do?

Simplifies and automates human resources processes

Most small businesses don’t have HR departments and IT teams to manage and administrate systems. In many small businesses, one person handles HR and it may not be their full-time job.

So, you need a system that simplifies processes and automates as much of the process as possible. This way, you reduce the workload significantly.

Reduces errors and helps you stay in compliance

Small businesses can also struggle to stay on top of constantly changing tax codes, labor laws, and privacy laws. Significant changes occur every year and 2022 is no different.

Look for an HRIS system that automatically calculates tax and withholding to reduce potential errors.

Look for an HRIS system that automatically calculates tax and withholding to reduce potential errors. You also want a system that provides the detailed reporting and archiving you need for compliance.

Helps you manage the total employee experience from hiring to retiring

Look for an all-in-one HRIS solution that helps you manage the total employee experience from hiring to retiring. The best HR software for small businesses will make your job much easier.

Hiring and onboarding

• Pre-populate offer letters
• Handle background checks
• Self-onboarding for new employees
• Digital W-4 and I-9 forms
• Account provisioning

Employee management

• Company org charts and directory
• Self-service employee updating
• Management of benefits, scheduling, and payroll
• Support for freelancers, consultants, and contractors

Vacation, sick time, and PTO

• Manage PTO policies for all employees
• Manage and approve requests online
• Set blackout dates
• Automated PTO tracking for employees
• Integration with scheduling and payroll

Offers robust business intelligence and reporting

Most small business owners also want an easy way to track and produce reports that help them manage their business. Make sure any HRIS software you consider lets you easily assess compensation summaries, turnover rates, headcount, equal opportunity statistics, and more.

The best HR platforms will have a variety of built-in reports but also allow you to customize fields and create relevant reports for your particular organization.

Provides self-service options for employees

You can simplify the work for your HR department when you make self-service options available to employees. Look for a system that allows storage and access to company handbooks, privacy policies, benefit schedules, and other important documents.

In addition, empowering employees to view their documentation, payroll stubs, benefits selections, and available PTO can save everyone time.

Helps with payroll, HR, and legal compliance requirements

Compliance is another key area where small businesses often need help. Make sure your HRIS software is capable of helping with any payroll, HR, and legal compliance requirements.

Payroll compliance

• Automatically calculate taxes
• Create, file, and format W2 and 1099 forms
• Provides payroll information that conforms to federal and state laws
• Provides support for overtime pay

You also want the option to file and pay your taxes within the HRIS platform if possible.

HR compliance

• Onboarding: Collect new employee information and send required notices
• Off-boarding: Automatically send mandatory notices and calculate COBRA payments
• Time tracking: Send employees reminders to take breaks and lunches
• Maintain secure documentation for EEO, ERISA, and tax information

ACA compliance

The Affordable Care Act (ACA) is more than 20,000 pages in length, so make sure your HRIS system can handle all these reporting requirements.

You want to be able to generate, review, and make available 1095-C forms for employees. You also need an easy way to monitor ACA status and e-file required 1094-C and 1095-C forms with the IRS.

The company also provides advisory services

As a small business, it’s challenging to stay on top of all the employment, payroll, tax, and insurance rules. When evaluating HR administration software, you may want to consider working with a company that can also provide advisory services.

The best HR software providers will also provide options for outsourcing HR, on-demand HR services, and HR experts to help fill in knowledge gaps when needed.

Assists with performance management, engagement, and growth planning

You may also want to consider HR software that can help you with performance management. This includes performance reviews, goal-setting, and tracking.

Some plans will also offer employee well-being and engagement tools, such as:

• Employee communication tools for announcements, events, and sharing information
• Automatic reminders for birthdays, holidays, and milestones
• Employee engagement surveys

You may also want access to compensation data to benchmark salaries against other businesses in your area or your industry.

Offers a mobile app for workers to access information anytime, anywhere

With today’s remote workforce and hybrid workplaces, you also want to make sure your HRIS software has a mobile app. This allows workers to access information wherever they work and make changes or updates even after hours.

Keep your business running smoothly with HRIS software

As you can see, there’s a lot that goes into managing the people part of any business. HR administration touches every employee and keeps businesses operating smoothly and in compliance. The right system can save you time and help you run your business more efficiently.

Bringing together HR, benefits, payroll, scheduling, and compliance into a comprehensive software package streamlines your workflow, so your team can focus more time on growing your business.