Essay on Implementation Cost and Security
Number of words: 1579
Costs and security are critical considerations when establishing a human resource information system. Implementing this proposed platform will take significant time and fiscal resources. The human resources manager and staff should evaluate the advantages and costs associated with the novel system using a Cost-Benefits Analyst. A “cost-benefits analysis” is “the process of calculating the advantages of a plan of events and comparing them to the related expenses (Kılıç & Kuzey, 2018). By thoroughly analyzing possible costs and advantages, the team will determine whether or not the company will benefit from adopting an HRIS. Additionally, given the possibility of HRIS breaches, it would be prudent for HR to examine what safeguards might be put in place to guarantee the safety of sensitive data.
Software, Hardware, and Software Authorizations
When installing an HRIS, the most critical choice is which system to adopt, which entails a great deal. HR may spend some effort selecting the design. Among the essential stages would be to determine precisely what the business wants the system to offer. In the establishment’s situation, the records management structure would have to adopt a self-service model. Because all data are stored in files, moving all information to an HRIS would increase efficiency. Additionally, payroll, although it presently utilizes a time capturing and payroll system, runs independently and is manually updated. The novel HRIS would need to integrate human resource data with the pay system. When deciding on our organization’s HRIS characteristics, we must keep these two points in mind.
The majority of HRIS systems would involve the storage and organization of personnel data. Many systems provide these operations, so it would be prudent to analyze, compare costs, and choose which approach would be the most excellent match for our business. Several variables to consider when determining the project’s cost include the cost of the software, what it contains, how the company will pay for licensure and system upgrades, and the kind of hardware needed. According to softwarepath.com (2019), the average cost of HRIS software per user is $6,125. This cost is for each facility over five years, and it allegedly rises when a company has more than 500 workers. This equates to about $100 each month for five years. Additional features such as timelines and payroll records may be required, affecting the software’s cost. However, the cost of the program is entirely dependent on the organization’s requirements.
Cezanne, a European firm, provides HRIS for approximately $2,064 per month for a 500-person enterprise. This would involve providing our company with complete self-service capabilities as well as payroll interfaces with third-party apps. Additionally, it would feature automated upgrades, onboarding assistance, core human resource data transfer, and even security. (Cezannehr.com, 2021). The program would be cloud-based, and since it would incorporate essential human resource data transfer, our company would not have to worry about upgrading existing hardware. The cost of implementation over four years would be about $99,072. This appears to be considerably above budget, but it does contain all of the functionality we’re looking for, as well as additional security and update features.
Another business, SutiHR, provides an HRIS beginning at $4 per worker each month. This price comprises the worker self-service component that the business wants to emphasize and a payment add-on for an additional fee. (Pardo-Bunti, 2020) This equates to about $2,000 each month and would cost $96,000 over four years. Additionally, the system is cloud-based, which means that hardware may not require as much updating. Along with the expenses associated with buying software, installing the new program will incur additional fees. If the program does not have this functionality, it will cost money for transferal data from the business’s excel sheets to the system during installation. Additionally, the expense of training workers to utilize the technology will be incurred. Fortunately, some businesses provide solutions that will automatically transfer HR Core data and provide implementation assistance. Indeed, both of them are included in the purchase of Cezanne’s HRIS. Nonetheless, employing an HRIS expert may be considered to guarantee a seamless installation.
Typically, deploying an HRIS would need a project team. Our company does employ a human resources manager and four human resources clerks. Although some of these jobs may be eliminated, it will be critical to have the human resources director and a secretary or two on the development team. The staff must comprise members familiar with the company, especially in this area of human resources. The remaining human resources clerks will expect to function human resources functions while the others focus on project planning and preparing the new system. Our payroll manager will also need to be a member of the development. This is to aid in decision-making throughout the payroll integration process and to aid their subdivision’s transition. Additionally, an HRIS advisor will be engaged to assist with the installation process. This is the only significant rise in headcount as a result of adoption. According to glassdoor.com (2021), an HRIS consultant earns an average of $66,757, an additional expense associated with HRIS installation. Along with engaging an HRIS expert, we must evaluate the number of hours necessary to spend preparing the project and training.
Return on Investment
ROI is a famous corporate phrase that refers to past and future fiscal gains (Akoyo & Muathe, 2017). It is critical to evaluate the return on investment to determine if it was worthwhile to execute. In the instance of our organization’s HRIS installation, we’re considering both software costs and the cost of engaging an HRIS consultant. If our company chooses a cloud-based HRIS, we anticipate paying up to $99,072 over four years. This HRIS would contain all of the capabilities we’re seeking in addition to training, security, and the ability to upload HR Core data. Additionally, we would need to engage an HRIS expert to oversee installation, which would expense about $60,859. The HRIS specialist would assist with project design and execution throughout the first year. Our company would spend at least $159,931 during four years.
By comparison, we would be able to save money by adopting an HRIS. AIHR reports that the current HR-to-worker ratio is 0.99 in the 25th percentile. Currently, our ratio is one, with five workers in our human resources department and 500 total employees, including exempt and non – exempt, full-time employees. However, “organizations that have made significant investments in digital human resources and self-service capabilities often have a smaller human resources organization (AIHR). By decreasing personnel in the human resources and payroll departments, the company would immediately save $191,265 over three years. This would result in a $31,344 profit for the organization.
Harmonizing Security and Self-Service Conservation
Worker self-service interfaces are web-based solutions that enable workers to obtain pertinent information and complete specific transactions from a centralized internet site or gateway. Employee self-service allows workers to complete information and even papers online, saving businesses time and money. The first step in ensuring security is for HR to get familiar with the legislation governing information security. Then, human resources should ensure that compliance is maintained. The development team will collaborate with management throughout the deployment of the new system to develop new or amend current information security rules. Additionally, encryption, recording features for an independent audit, and the integration of proprietary identity management organizations with an HRIS may be utilized to protect information. With all of these methods in place, managers and workers alike may feel comfortable sharing and updating data through self-service. Employees who feel comfortable exchanging information may utilize the system more often than those that do not.
Conclusively, installing an HRIS will be an expensive endeavor. In addition to the costs spent before implementation via the acquisition of software and the engagement of a consultant, the business will need to continue working and ensuring the confidentiality of stored information. Despite the cost and time constraints, adopting an HRIS will result in many advantages, including a high rate of return. Our company will accomplish the self-service approach we desired by using a cloud-based, SaaS HRIS. Additionally, since it is cloud-based, little hardware change will be required. Additionally, the business will avoid the potential costs of human mistakes and security breaches resulting from stolen computers and data.
Kılıç, M., & Kuzey, C. (2018). Determinants of forward-looking disclosures in integrated reporting. Managerial Auditing Journal.
Cezannehr.com (2021) Cezanne HR Pricing. Retrieved from: https://cezannehr.com/hr-systempricing/
Glassdoor.com (2021) Salary: Human Resources Clerk Salaries. Retrieved from: https://www.glassdoor.com/Salaries/human-resources-clerk-salary-SRCH_KO0,21.htm
Akoyo, S. I., & Muathe, S. M. A. (2017). Towards a Theoretical Model for Human Resource Management Information Systems, Government Policy, and Organizational Performance: A Research Agenda. IOSR Journal of Business and Management, 19(1), 43-53.
AIHR Analytics (n.d.) The Optimal HR to Employee Ratio. Retrieved from: https://www.analyticsinhr.com/blog/hr-to-employee-ratio/
Softwarepath.com (2019, March 14) What 1,028 HRIS projects tell us about selecting HRIS (2019 HRIS report). Retrieved from: https://softwarepath.com/guides/hris-report
Pardo-Bunte, Melissa (2020, April 17) SutiHR Review. Retrieved from: https://www.betterbuys.com/hrms/reviews/sutihr/