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Trusted Brand Reviews brings you expert insights to guide your payroll processes and human resource management. Discover practical strategies to optimize these systems through HRIS and software automation, freeing up time and resources and boosting productivity.
The Difference Between HRIS & ERP—A Comprehensive Explanation

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The Difference Between HRIS & ERP—A Comprehensive Explanation
Over the last few years, HR teams have been increasingly using software solutions to help them better manage the workspace. Namely, there are many types of these solutions, with HRIS (Human Resource Information Systems) and ERPs (Enterprise Resource Planning) being some of the most popular ones. Despite their popularity, there is still a lot of confusion surrounding the two types of systems. Many believe that they are one and the same, yet this couldn't be further from the truth. In reality, HRIS and ERP systems are quite different, albeit complementary, which is why it's important to understand the difference between these two types of solutions prior to choosing one. What Is HRIS? At its core, an HRIS is a system that helps organizations manage and store employee data. This data can range from contact information and addresses to payroll records and time-off requests. Additionally, an HRIS can also help with talent management and performance tracking. Thus, the main purpose of an HRIS is to make it easier for HR teams to access employee data, as well as use this data for improvements in the future. In doing so, an HRIS can save the organization time and money while also improving the overall efficiency of the HR team. Some of the main features of an HRIS solution include: Managing employee data from a single system. Simplifying hiring and onboarding. Ranking employees based on objective performance. Allowing employees to request sick days and vacations without contacting the HR team. » Need some expert tips for easier payroll processing? Learn about streamlined payroll processing and simpler small business payroll. What Is ERP? An ERP, on the other hand, is a much broader solution that helps organizations manage and automate multiple aspects of their business, from finance and accounting to inventory and manufacturing. While an HRIS focuses exclusively on HR data, an ERP system covers all areas of the business. As such, an ERP is a more comprehensive solution that can be used by all departments within an organization. Some of the main features of an ERP include: Integrating multiple pillars of a business. Unifying business operations. Offering a one-in-all solution for marketing, sales, and accounting. Real-time insight on important metrics like gross income and revenue. 5 Key Differences Between HRIS & ERP Now that we've looked at the main features of each type of system, let's take a more in-depth look at the key differences between HRIS and ERP: 1. Purpose The purpose of an HRIS solution is to allow the HR department to easily store and manage the company's information through the system. Usually, this type of system also features other HR activities like employee training, onboarding, and recruiting new talent. An ERP's purpose, on the other hand, is created to support all departments within an organization—not just the HR team. Namely, this is done by providing a system that can automate various business processes, which often include accounting, manufacturing, customer relationship management, and so on. 2. Functionality An HRIS is mainly used to store employee data and help the HR team with the basic functions. It is a solution that provides functions that can only be used by the HR department ERPs, however, allow businesses to unify different business operations, including marketing, finance management, accounting, and more. Contrary to HRIS, an ERP offers functions that can be used by accountants, marketing experts, and even managers. 3. Database The database offered by an HRIS solution is only used to store employee information. In contrast, an ERP database can be used to store customer data, supplier data, and inventory data. So, an ERP solution's database is more extensive, but it's also much more difficult to maintain and manage. 4. Specialized HR Functions Some HRIS solutions offer specialized functions for payroll management, attendance tracking, and managing employee benefits. They are solutions that are specifically tailored for the HR team. On the other hand, ERP solutions do not offer any specialized HR functions. » Struggling to cope with business payroll? Try automated payroll software instead. 5. Cost & Difficulty of Implementation HRIS solutions tend to be less expensive and easier to implement than ERP solutions. This is because HRIS systems are designed to meet the specific needs of the HR department. In contrast, ERPs are more comprehensive solutions that require a larger investment. Moreover, ERP solutions are generally more difficult to implement because they need to be customized to the specific needs of the organization. This process can be quite time-consuming and costly. Understanding the Needs of Your Organization Even though HRISs and ERPs are oftentimes mentioned in conjunction, the truth is that they offer different features to businesses. This is why it's important to understand the needs of your business and to adequately coordinate your priorities. So, if you think that your company would benefit from a solution that lessens the burden on the HR team, then you probably need HRIS. This solution will manage recruiting, onboarding, offboarding, and even compliance management for you. On the other hand, an ERP will help you manage multiple aspects of the business, not just human resources, but is far more difficult to maintain and not necessarily suitable for smaller businesses.
What Is HRIS and How Can It Benefit Your HR Function?

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What Is HRIS and How Can It Benefit Your HR Function?
Human resources information systems (HRIS) are primarily used to collect, store, and adequately manage employee data in a company. In the vast majority of cases, however, this system does more than work with employee data—it also serves as a system for managing new recruits, tracking performance, and steering the company in the right direction. With the basics out of the way, let's dive deeper into HRIS and uncover how it works. HRIS Explained An HRIS is a software solution that eliminates the need for manually managing human resources. A solution like this is often used to store and manage employee records, like their performance, history, and compensation. With technological advancements, HRIS solutions have become much more sophisticated, offering complex features like new talent acquisition, tracking efficiency, and keeping pace with new trends in the workplace. The main goal of a software solution like this is to help HR teams meet their company's strategic goals. With the right HRIS solution, companies have a clear overview of employees' skills and performance, helping them advance in their careers while driving efficiency in the workplace. Common HRIS Functions Most HRIS solutions offer the same basic functions, though additional features can be added to cater to a business's needs. These are the most common functions required by an HRIS solution: Attendance Tracking After the COVID-19 pandemic, tracking attendance became much more challenging. This is because many companies started to offer remote positions, so tracking attendance was no longer limited to swiping an employee card. If you're having difficulty managing attendance, it's advisable to look into the best software for employee time tracking to simplify the process. Applicant Tracking System (ATS) A good HRIS solution can help HR teams get a better overview of their applications. Using some of the best hiring and onboarding software apps will give you access to preliminary screening and even background checks. Benefits Administration HR managers are tasked with managing and tracking workers' compensation. However, employees' benefits aren't limited to their compensation alone. They could also include health insurance, gym memberships, and mileage reimbursements. Employee Self-Service More and more organizations are starting to benefit from their employees managing their requests without requiring direct supervision. The right HRIS software allows an employee to request a paid vacation or sick days without having to directly discuss the matter with the HR department. This lessens the burden on the HR department while simultaneously increasing employee satisfaction. Payroll It's no easy feat to issue paychecks when managing a large team of employees. With a suitable HRIS, you'll have a software-automated payroll process, ensuring that every hour of work is paid. Performance Management Many companies confuse attendance tracking with performance management, but the truth is that they're very different. For example, a frequently absent employee could, in fact, be more productive than an attendant one but be compensated less due to having fewer hours in the workplace. Having an HRIS solution helps the HR department distinguish this line, ensuring that well-performing employees are adequately compensated. Reporting & Analytics Managing reporting and analytics with HRIS software usually refers to automated HR reports on relevant employee data, like their performance or absence. Such a system can help the HR team make better decisions based on these reports. Succession Planning Sometimes, people leave the workplace for alternative employment, which is why having an available replacement is crucial. An HRIS can help your company find a replacement quickly if an employee leaves. Training Training is essential to steer a company in the right direction, especially regarding new talent. An HRIS solution often entails having a learning management system with featured e-learning and courses. Benefits of HRIS for Human Resource Managers These are the main benefits HR managers can expect from an HRIS solution. Increase in Productivity The main benefit of an HRIS is the increase in productivity it offers. A key example is streamlining payroll processes to save time. By automating everyday tasks and functions, HR departments can focus on more important tasks and enjoy improved productivity. Improvement of Operational Performance Not only will HRIS software improve productivity in the HR department, but it will also boost operational performance. If an HR team has better overviews and access to data, it can make better decisions for the company. Streamlined Compliance Management A successful HRIS ensures that all employee data is adequately managed and stored due to improved reporting and analytics. This can help you avoid any compliance issues. Data-Driven Decision-Making Another significant benefit of an HRIS solution is that it allows for data-driven, accurate decision-making. With all the data stored in one place, HR teams can make better decisions and develop new strategies based on facts and figures. Enhanced Employee Satisfaction HRIS software streamlines and automates many administrative operational processes. Employees are able to quickly and easily make requests, which fosters greater employee satisfaction. HRIS: Beneficial to All A strategic and successful HRIS solution offers substantial benefits to both the HR department and employees. By automating common tasks and processes, HR personnel can enjoy improved productivity and focus on more important job duties. Most importantly, they can focus on what really matters in the company—the people.
How to Manage & Track Workers' Compensation (6 Simple Steps & Tips)

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How to Manage & Track Workers' Compensation (6 Simple Steps & Tips)
Workers' compensation will pay employees' medical costs and wages lost due to a workplace injury. Mismanagement of workers' comp claims can result in a great deal of financial and legal trouble for your organization. Effective management and tracking of workers' compensation claims can save your company considerable amounts of time and money. That being said, read on to learn exactly how to manage and track your workers' compensation claims with these easy steps and some expert tips. 6-Step Workers' Compensation Guideline for Your HR Department Your HR manager should take the following steps for every workers' compensation claim: 1. Employee Reports Work-Related Injury Should an employee injury occur, the employee must report the incident to the employer as soon as possible. Immediate reports facilitate faster claim resolution and limit legal risk and potential fraud. 2. HR Manager Files First Report of Injury (FROI) The employer should complete and file the First Report of Injury (FROI) to the workers' compensation insurance carrier. OSHA regulations mandate that certain injuries are reported within a specific period, and many states charge fines and penalties for reporting delays. 3. Insurance Claim Is Filed & Incident Investigated Once the insurance carrier has received the report, the insurance company will perform its own investigation of the incident. The company will look at medical records and collect statements from the employee, witnesses, and the person who received the incident's initial report, looking for any indication of fraud. 4. Claim Is Accepted or Denied With the evidence gathered during the insurance carrier's investigation, the insurer will decide to accept or deny the workers' compensation claim. 5. Development of Return to Work Plan The insurance claims adjuster and the employer's HR department work together to develop a plan for the employee to return to work based on the report provided by the employee's physician regarding their capabilities. If possible, the employer may make accommodations for the employee to return to work. 6. Settlement of Claim With Employee Return The claim is closed when the employee has healed from their injury, has been released from their physician's care, and has fully returned to work. Tracking the Workers' Compensation Claim Once Filed Your HR department can efficiently track workers' compensation claims after filing with the help of automation. Workers' comp software can assist with filing injury reports, document management, compliance, and claims workflow management. Some even offer injury and claims cost analytics to help you identify areas that may require safety or process improvements. When comparing workers' compensation tracking software, consider the following features: Payroll integration Workers' comp tracking software that integrates with your automated payroll software means less data entry and fewer errors. Organization and reporting tools The software should be able to be filtered by various factors such as department or claim status to create detailed reports. Ability to accommodate complex scenarios It may be necessary to manage workers' comp claims across different states or worksites. The software you choose should be able to handle this complexity. Ability to produce high return on investment The investment in the software should not be more than the amount of money saved through reduced claims or time spent managing workers' comp. Understanding Experience Modification Factor Your workers' compensation premiums are based on your organization's MOD, or experience modification factor. MOD is a formula used by your insurance carrier to determine the amount of premiums they'll charge your organization. The formula takes into account the amount of actual workers' comp losses your company has incurred, based on your company size and industry, and expected future losses. The MOD formula outputs a factor around 1.0. If your MOD is less than 1.0, your losses are better than expected, and you'll get a discount on your workers' comp premiums. A MOD above 1.0 indicates losses are worse than expected, and you'll pay more for insurance. Extra Tips for Effective Workers' Compensation Management Promote Workplace Safety You can promote workplace safety by providing your employees with the proper training, keeping a clean workspace, posting signs, and regularly reviewing safety procedures with your team. Reminding your employees to work safely will reduce the risk and number of injuries. Act Immediately After Injury If an injury occurs, acting immediately can save money on fines and penalties for delayed reporting and eliminate the possibility of fraudulent claims. Conduct a Thorough Investigation A thorough investigation of the accident as soon as it occurs will identify any immediate dangers to others. Documenting the situation can help with filing workers' comp claims and protect you from false claims. Control Drug Costs (If Possible) One of the most effective ways to reduce drug costs is to replace brand-name drugs with generic drugs. A pharmacy benefits management program can help negotiate better prescription drug costs. Evaluate Post-claim Expenses Continually assess for ongoing medical expenses for injuries, such as costs of physical therapy or specialty physician visits. Remember that certain injuries may have latent effects on the body, which may not appear until months or years after the original injury. Beware of Claims Fraud You can combat the likelihood of claims fraud by implementing a zero-tolerance policy for false claims, establishing ways for employees to report fraud anonymously, and installing video surveillance in work areas. Bottom Line: Take Control of Your MOD Factor Even though you cannot determine your own MOD score, you should take the necessary steps to influence it. Since MOD is basically a safety score for your company, improving your safety programs to lower the number and severity of workers' comp claims will, in turn, lower your MOD factor, thus reducing workers' comp losses and insurance premiums.
The Fundamental Differences Between HCM & HRM Explained

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The Fundamental Differences Between HCM & HRM Explained
Human Capital Management (HCM) and Human Resource Management (HRM) share many similarities, yet the two are very different. Both support the HR function in the daily responsibilities of managing the workforce to create a more effective organization. For example, HCM and HRM are both interested in hiring, training, and retaining the best talent, but they differ in the way they approach the task. Keep reading to learn more about the difference between HRM and HCM in order to make the best choice for your organization. What Is Human Resource Management? The notion of HRM emerged before HCM. As personnel challenges, such as compliance and employee relations, increased, so did the need for a more effective management process. HRM predominantly focuses on the organization's immediate needs—the day-to-day administration of employee-related tasks such as the following: HiringOnboardingTrainingTime and attendancePayrollBenefits administrationRecords managementCompliance HRM aims to hire and retain employees with the skills necessary to help the organization succeed. An organization can achieve this goal by developing recruiting and training practices that equip the right people with the right skills and through proper management of the employee-employer relationship to maximize employee productivity. What Is Human Capital Management? The term HCM appeared after HRM but is much broader and encompasses all aspects of HRM. HCM's primary focus is the organization's long-term needs—how to utilize its human resources in a way that provides the organization with a return on its investment. HCM uses data provided by HRM activities to guide top-level management in strategic business decisions. HCM may involve responsibilities such as the following: Assessing the organization's skills needsDeveloping new roles in the organizationCreating an employee/team structureDesigning compensation and benefits plans that will support the retention of employees Key Differences Between HCM & HRM While HCM and HRM both focus on managing human resources, they differ notably in their objective. Goals The goal of HCM is economic: to maximize the efficiency of the organization's workforce in order to provide a return on investment of that capital. In contrast, HRM's objective is administrative: to hire and retain an efficient workforce. Roles HCM and HRM are involved in the process of recruiting, hiring, and onboarding, each with different roles. The role of HCM is to assess the organization's needs—creating a new position, if necessary—and recruit talent with the desired skills and abilities. HRM's role is to design and manage an efficient hiring and onboarding process for the recruited talent. Training Training is another HR responsibility where HCM and HRM have roles, yet they approach the task differently. HCM broadly defines the required skills employees need to benefit the organization. HRM, on the other hand, designs and manages suitable training plans for the workforce and then measures the success of that training. Choosing the Right Approach for Your Business There is no right or wrong approach to the management of human resources as each provides its own unique value to your organization. It would help if you began by identifying your organization's current challenges and expected future needs. Some smaller companies find that their main challenges are in the daily management of their workforce, while larger organizations' needs are much broader. Regardless of which approach you choose to implement, everyone in your organization should agree and understand what is expected of them to ensure success. HCM and HRM are not mutually exclusive; both are employee-centric and focus on maintaining a workforce that benefits the organization. Additionally, there's nothing stopping you from combining the two approaches within your organization to produce fantastic results. They are simply established management approaches that aim to help organizations identify and implement the goals they need and are not infallible.