Managing HR through spreadsheets, Slack, WhatsApp, and email can work when your team is small. But as the business grows, keeping employee information and HR tasks organised can become harder.
Leave requests get lost in chat histories, employee records scatter across files and folders, and payroll becomes a stressful loop of double-checking PAYE, statutory deductions, and tax compliance.
That’s when many growing businesses start considering a Human Resources Information System (HRIS). But with so many systems and features to choose from, how do you know which one actually fits your business?
It comes down to finding a system that fits your needs, processes, and growth plans.
What Is an HRIS?
An HRIS is software that helps businesses manage employee information and HR processes in one place. It can handle such things as:
- Employee records: Contracts, personal information, job details, and other employee documents.
- Leave and attendance: Leave requests, approvals, and attendance records.
- Payroll: Salaries, deductions, payslips, and other payroll processes.
- Recruitment and onboarding: Managing applicants and moving new employees through the onboarding process.
- Performance management: Setting goals, conducting reviews, and keeping performance records.
- Reporting: Producing reports on headcount, leave, attendance, and employee turnover.
The main advantage of the system is that HR doesn’t have to manage all of this across separate spreadsheets and files. It also allows employees and managers to handle routine tasks like requesting leave or accessing payslips without going through HR each time.
But an HRIS isn’t a replacement for good HR processes. If your policies are unclear or your records are poorly maintained, putting them into software won’t solve the underlying problem.
How Do You Know It’s Time for an HRIS?
There isn’t a specific number of employees at which every business needs an HRIS. A business with 25 employees spread across East Africa may need an HRIS more than a business with 50 employees based in Nairobi. What matters is whether your current HR management processes still work as the business grows.
Some signs that it may be time to move away from manual processes include:
- HR information is scattered: Employee records are stored across different files and folders, making it harder to find the information HR needs when they need it.
- Routine HR administration takes too much time: HR spends too much time answering routine questions, processing requests, and updating employee records.
- Onboarding is largely manual: If every new hire requires HR to send several emails, collect documents, and enter the same information into different systems, you need to automate some of these tasks.
- The business is becoming more complex: Adding employees, departments, or locations means more HR information to track and more processes to coordinate.
If you’re experiencing these problems, it may be time to consider an HRIS. The next step is to look at what your system should actually be able to handle.
What Should You Look for in an HRIS?
The right features depend on what your business needs. Here are the key areas to consider.
Employee Records
Look for a system that lets you keep details such as employee contacts, job titles, employment dates, contracts, and salary information on each employee’s profile. It should also offer access control features to limit who can view or edit employee information.
Payroll
If you plan to use the HRIS for payroll, confirm whether it can handle PAYE and applicable statutory deductions, including SHIF, NSSF and the Affordable Housing Levy. Check whether it can generate the payroll reports and records you need and handle the way your business currently runs payroll, including your pay schedules.
And if you already have payroll software, find out whether the HRIS can integrate with it to avoid replacing a system that works.
Leave and Attendance
Managing leave through messages and spreadsheets can make it difficult to track requests and approvals. An HRIS should give employees a straightforward way to request leave and managers a clear way to review and approve it.
If attendance or working hours are important to your business, look for time-tracking features as well.
Recruitment and Onboarding
Look for features that allow you to track applicants, manage offers, collect documents, and set up onboarding tasks. It is also useful if information collected during recruitment can be transferred to the employee’s record when they join, so HR doesn’t have to enter the same details twice.
Performance Management
If your business has a performance review process, check whether the HRIS can support it. For example, you may want employees and managers to record goals, complete reviews, and keep feedback in one place.
Employee Self-Service
Self-service allows employees to handle routine tasks without involving HR each time. For example, they may be able to update their personal information, submit leave requests, access payslips, and view other employment records themselves. It reduces the number of routine requests HR has to handle manually.
Reporting
When comparing systems, confirm whether you can get the reports you actually need and how much work it takes to produce them. This might include reports on headcount, turnover, leave, attendance or payroll.
Integrations
Ensure the HRIS can connect with your payroll, accounting, recruitment, or attendance software. It’ll save your team from entering the same employee information into several systems and reduce the chance of errors.
What Should Kenyan Businesses Consider?
A system that works well in another market may not necessarily be the right fit for a Kenyan business. That’s why you need to consider the factors below.
Kenyan Payroll and Statutory Requirements
If the HRIS includes payroll, find out how it meets Kenyan requirements and how quickly the provider updates the system when those requirements change. For example, ask whether PAYE and applicable statutory deductions are calculated automatically and what your payroll team still needs to do manually.
Data Protection
An HRIS stores employee personal information, so you need to find out how the provider protects that data. Ask where it is stored, who can access it, what security controls are available, and what happens to your data if you leave the provider.
Local Payments and Integrations
Check whether the HRIS or its payroll component can work with M-Pesa and local banks such as KCB, Equity and NCBA. It’ll help make salary payments easier to process and reduce manual data entry.
Local Vendor Support
Confirm how the provider handles client support before you commit to the system. Find out when support is available, how to reach them, and how quickly they respond. You don’t want to be stuck waiting for a response when, for example, payroll fails to process on payday.
Supporting Growth
Think about where the business is likely to be in the next few years. If you expect to add employees, locations or departments, ensure the HRIS can accommodate that growth without forcing you onto a different system later.
How to Choose the Right HRIS
Here’s a quick step-by-step guide to help you choose the right HRIS for your business.
Step 1: Identify Your Problems
Start with your current HR processes. What takes too long? Where are mistakes happening? Which information is difficult to find? What does HR repeatedly do manually? These answers should form the basis of your requirements.
Step 2: Separate Must-Haves From Nice-to-Haves
HRIS platforms can come with a long list of features, but you may not need all of them. Focus on what solves your current problems. For example, if your main challenge is managing new hires, prioritise a system with useful onboarding features rather than paying extra for advanced functions you may never need.
Step 3: Shortlist Suitable Systems
Use your must-have list to narrow down the options. Eliminate any system that cannot handle the processes you need, doesn’t work with your existing tools, or is outside your budget.
Step 4: Test the System With Your Actual HR Processes
Ask the vendor to show you how the system handles the tasks your team actually performs, such as onboarding a new employee or running payroll. That way, you can see whether it works for your business before committing to it.
Step 5: Check Implementation, Support and Training
Ask what happens after you sign the contract. Who will move your existing employee records into the system? How long will the setup take? What training will your team receive? And who will handle support when something goes wrong?
Step 6: Calculate the Total Cost
The subscription price isn’t necessarily the full cost of an HRIS. Check for implementation fees, additional modules, integrations, training, and support. Also find out which costs may increase as your workforce grows.
Step 7: Think About Where the Business Will Be in Two or Three Years
Don’t choose a system only because it works for your current headcount. Consider whether it can handle the number of employees, locations, and processes you expect to have as the business grows.
Common HRIS Selection Mistakes to Avoid
- Choosing based on the feature list: More features don’t automatically mean a better HRIS. A simpler system that handles your essential processes well may be more useful than a platform packed with functions your team won’t use.
- Choosing the cheapest option: Don’t compare systems on subscription price alone. Implementation, support, integrations, additional modules, and per-employee charges can make a cheaper system more expensive over time.
- Underestimating implementation: Moving employee records into a new system takes planning. You need to account for data migration and training before implementation begins.
- Failing to involve employees and managers: HR may be choosing the system, but employees and managers will use it too. If they find basic tasks difficult, they may avoid the system and return to old processes.
- Not checking integrations: An HRIS can create more work if it doesn’t connect with the systems you already use. Check your important integrations before committing to a platform.
- Assuming software will fix poor HR processes: An HRIS can make a good process easier to manage, but it won’t fix unclear policies or approval responsibilities. Make sure the processes you’re automating actually work before putting them into the system.
Choose an HRIS That Fits Your Business
The right HRIS isn’t the one with the most features. It’s the one that makes your HR processes easier to manage without creating unnecessary complexity. Start with the problems you need to solve today, but choose a system that can continue to support the business as your workforce grows.
At Bridge Talent Group, we help businesses improve their HR processes as they grow. Contact us today if you’re considering an HRIS or reviewing your current HR systems.
