In a small company in Davao, John Manual, an HR manager, found himself buried under a mountain of paperwork. His outdated manual HR processes were causing inefficiencies, leading to costly errors and wasted time.
As the company grew, so did the problems and the amount of John’s workload. Errors in payroll calculations started to occur which led to dissatisfied employees. Long onboarding process also resulted in delayed start dates for new hires.
John knew something had to change. Determined to solve this issue, he sought an innovative solution that could streamline the company's HR processes. After carefully researching different options and discussing with his team, John chose a human resources information system (HRIS) that was a good match for what the company needed.
Now that they have the new HRIS system up and running, all that effort has really paid off. It's helped streamline a lot of processes — from onboarding new hires to tracking time off and reviews. And even better, it automated parts of payroll too. Overall the new technology has saved them both time and money.
If you want to experience similar success in your Davao-based business, continue reading to learn more about the benefits of implementing an HRIS.
Understanding Davao’s Business Landscape
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The Davao Region, including Davao City, started 2023 with a positive economic outlook. Prices of basic commodities have stabilized with better food supply, targeted social assistance, lower global oil prices, sustained remittance flows, increased employment, and a rising value of the Philippine peso.
Investments in Davao’s various sectors are also anticipated to increase in the coming years. This is thanks to the efforts aimed at reversing the impact of the pandemic, which include:
- Promoting Davao as ready for more tourism and business investment,
- Establishing Davao as a major global logistics center,
- and Building stronger partnerships between government agencies and private companies.
When it comes to Davao’s micro, small, and medium enterprise (MSME) sector, they are expected to fully recover from the effects of the pandemic, with significant government support recognizing its critical role in helping the economy. The amount of loans extended to MSMEs in 2022 increased by 29% compared to 2021.
Finally, innovation in the region is being fostered through the Davao Region Development Plan 2023-2028. By pushing scientific and technological advancement, the religion hopes to create better quality jobs and make products more competitive globally.
Fostering innovation is crucial for economic growth and competitiveness these days. If you're a business owner or entrepreneur in Davao, adopting an HRIS can be a great solution to enhance your operations and give your company a competitive edge.
What is an HRIS?
A human resources information system (HRIS) is a software or online solution that stores, manages, and processes comprehensive employee data and human resources-related policies and procedures. This tool helps standardize HR tasks and processes while also enabling accurate record-keeping and reporting.
Key functions of HRIS include the following:
- Managing Employee Data
- Administering Compensation and Benefits
- Handling Performance Management
- Overseeing Recruitment and Onboarding
- Managing Training and Development
- Providing Workforce Analytics
A big perk many HRIS solutions offer is self-service employee portals. These let people access their own profiles and make their own updates. So employees get more control over their personal info without having to ask HR about every little change. And with staff empowered to update things directly, HR doesn't have to spend as much time handling basic data tasks.
The goal of an HRIS is to make life easier for both employees and HR by putting the information and tools they need most in one convenient, easy-to-use hub. When the system gives people autonomy to self-manage, everyone wins — staff get independence while HR gains time for more strategic work.
What Are the Different Types of HRIS?
HRIS systems come in a few different types — operational, strategic, tactical, comprehensive, and limited-function. They all aim to help HR folks by centralizing employee data, enabling self-service, automating tasks, and managing talent. But each type also has its own strengths:
Operational HRIS is about collecting employee data info and generating reports for things like performance reviews, hiring, promotions, etc. It's great for streamlining everyday HR tasks.
Strategic HRIS has more of a future-facing purpose — it focuses on analysis and planning to inform longer-term organizational goals. Workforce forecasting, budgeting, setting targets — this type helps leaders make big-picture decisions about company growth and the resources to get there.
Tactical HRIS helps optimize resource allocation and development — recruiting, training, compensation etc. It provides insights by incorporating competitor and regulatory data to guide macro workforce decisions.
Comprehensive HRIS serves as the one-stop shop HR database, touching everything from operations to strategy. It's a centralized platform housing all data and tools needed to execute the majority of HR work.
Finally, limited-function HRIS zeroes in on a specific task like benefits or learning. It's a cost-effective single-purpose solution well-suited for small companies with streamlined HR needs.
The Benefits of Using HRIS for Davao Businesses
Utilizing HRIS software can bring numerous benefits to your organization. By replacing paper-based and manual processes, you can streamline and automate administrative tasks, enhance communication, create insightful reports, and improve decision-making.
The goal is to free up HR staff to focus more on strategic activities and less on routine tasks. Here’s a closer look at how Davao businesses can benefit from HRIS:
1. Enhances Operational Efficiency
Davao businesses are booming lately, with an 8.1% growth rate in 2022 alone. But that kind of rapid expansion makes efficiently managing people more critical than ever, as inefficiencies drain 20-30% of potential revenue every year.
Implementing an HRIS system can seriously improve operations by automating repetitive HR tasks. That clears time for managers to focus on pressing matters like retention, company culture, training needs — things that really impact the company’s bottom line. And with all data centralized, insights that guide smarter decisions are just a few clicks away.
2. Improves Employee Experience
Beyond operations, seamless HR tech also creates a better experience for employees. As Gen Zs (81%) and millennials (76%) shift hard toward flexible and remote arrangements, companies need to step up.
Disjointed HR systems equal headaches for staff, dragging down productivity and employee satisfaction. But with a unified HRIS platform, employees can handle HR needs like time-off requests or training enrollment straight from their devices. It streamlines everything from onboarding to offboarding, making work simpler.
When the employee experience improves, so does retention and satisfaction.
3. Saves Time and Money
Manual HR tasks can be time-consuming and result in significant paperwork. An HRIS digitizes every HR process, saving time and money for your organization and enabling employees to be more productive.
Numerous studies have demonstrated the positive impact of HRIS on business performance, with 79% of 33 organizations recognizing cost savings as the main driving force behind implementation. HRIS also has the potential to reduce hiring time by two-thirds and lower costs by 90%. By reducing the time spent associated with manual HR processes and preventing repetitive work, an HRIS minimizes administrative work and saves money.
4. Ensures Privacy and Government Compliance
Companies have a legal responsibility to protect employee personal information under the Data Privacy Act An HRIS can support compliance efforts by providing secure storage and oversight of employee data. Features like access controls and audit reporting help demonstrate adherence.
HRIS vendors also regularly update their systems to align with evolving regulations. This is important, as non-compliance with Davao's regulations can result in legal consequences and damage to the company's reputation.
What to Look For in an HRIS?
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When choosing an HRIS software, it’s critical to analyze the key features they provide to maximize efficiency and productivity in managing HR processes. Here are some important features to consider when looking for an HRIS.
- Onboarding Management: Streamlined onboarding is a crucial part of a great employee experience. Look for an HRIS that provides structured onboarding processes and automated workflows to ensure a smooth transition for new hires.
- Database Management: Look for an HRIS that has a centralized system that stores employee data securely. Having this feature improves employee privacy and enables HR to easily generate reports.
- Employee Self-Service: Look for an HRIS that has self-service features. This empowers employees to manage their personal information, attendance, and time off, reducing reliance on HR staff.
- Time Off and Attendance Management: This feature automates and simplifies attendance tracking. Look for an HRIS that also integrates with biometric devices for accuracy and efficiency.
- Payroll Management System: Look for an HRIS that integrates payroll and attendance management. Having this kind of feature can greatly benefit HR, as this streamlines payroll processing and document storage.
- Performance Management: This feature facilitates performance reviews, goal setting, and performance analysis. An HRIS that has access to these data enables HR to gain actionable insights and make informed decisions.
- Mobile Application: Look for one that enables HR functions on the go, allowing employees to submit requests and managers to provide approvals remotely.
How to Choose the Right HRIS for Your Business: A Step-by-Step Guide
We know that choosing the right HRIS software can be quite challenging, given the multitude of available options. If you want to make sure that you choose the right one, follow these steps.
Step 1: Understand your Organization’s Needs
First things first, prioritizing organizational needs is key when evaluating HRIS solutions.
Clearly define your organization's HR objectives, both short- and long-term goals.
- What goals are top-of-mind in the next 6-12 months?
- Are improved employee engagement, streamlined operations, or better analytics capabilities on the radar?
Also consider hiring plans and corporate culture elements that could impact an HRIS fit. Mapping out these factors provide a basic idea of what to expect from your chosen HRIS.
lights the path ahead.
Step 2: Gather Your Team and Get Their Perspectives
Selecting the right HRIS for your organization is a big task and should not be based on one person’s decision. Make sure to gather perspectives from different people such as stakeholders, HR, IT, payroll, managers, and end-users.
Also, include your legal team to ensure HRIS compliance with various laws, especially in Davao. This will help you gain different perspectives and ensure that the chosen HRIS meets the needs and requirements of all departments within your organization.
Step 3: Conduct Extensive Research
This is one of the most crucial steps in choosing your HRIS. Shortlist vendors with proven reputations, but scrutinize carefully — can they address your company’s pain points? Weigh capabilities vs. must-haves. Check reviews too for candid user feedback.
Additionally, consult peers at other companies to get further insights on vendors you’re considering. You also need to confirm if potential partners fit your budget to avoid financial strain down the road.
Step 4: Contact Different Service Providers
Looking beyond marketing materials is crucial for spotting the true strengths and weaknesses of HRIS solutions. Schedule live demos with all prospective HRIS providers and request free trials for hands-on testing. It’s also important to have key stakeholders assess each platform.
Lastly, evaluate response times and depth of customer support. You’re choosing a long-term partner, so be sure they’ll provide help when needed.
Step 5: Select Your Chosen Vendor
After all that research and narrowing things down, you're just about ready to select the right HRIS for your organization. Talk over the options with your team — weigh the features against your budget and pressing needs.
Once you've landed on a choice, contact the vendor and start planning the transition. Be sure to communicate timelines and changes to employees so everyone is aware when you make the switch. This will make sure that things go smoothly.
Step 6: Perform a Pilot Test
During implementation, take the HRIS for a spin — try every function and explain each module to staff. Training sessions and resources can equip employees to adeptly use the system. Also, give your staff time to get up to speed since adapting to this new system takes time.
Most importantly, keep lines of communication open and address any questions or concerns that come up. Supporting your team through this adjustment period sets things up for success.
Step 7: Conduct an Evaluation
Once the rollout is complete, encourage full use of the HRIS capabilities. After a month or so, survey users about their experience. Then, meet to pinpoint what's working well and what's not. If some tools aren't measuring up, make targeted tweaks.
Selecting the right HRIS is an ongoing process, so be ready to fine-tune based on real employee feedback.
Partner With The Leading HRIS Provider In Davao
As Davao’s business landscape continues to thrive and dominate the Next Wave Cities list, implementing an HRIS can be a huge game-changer for growing businesses.
Having this solution allows HR and managers to automate various HR tasks such as employee data, payroll, performance management, and more. This leads to increased efficiency and accuracy in HR processes and improved employee experience.
With numerous solutions available on the market, Sprout stands as one of the leading HRIS software providers in Davao and throughout the Philippines.
The new Sprout Ecosystem offers an integrated solution for all your HR needs. This includes:
With Sprout, you can ensure that your HR processes are streamlined and efficient, allowing you to focus on other strategic initiatives.
Ready to take your HR operations to the next level?
Talk to us and explore how Sprout can drive efficiency in your workplace.