Tag: hris

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HRIS 101: A Guide for Small Businesses

Summary

  • It’s typical for small businesses to consider using HRIS to help manage their employees, but choosing an HRIS software takes an average of 15 weeks.
  • HRIS, HRMS, and HCM are all HR-related systems that are similar but are distinct in their focus. Small businesses must know the difference between these systems to make a sound decision.
  • Workforce.com helps small businesses beyond their HRIS requirements, offering an all-in-one solution for managing HR processes from onboarding, tracking time and attendance, payroll, performance management, and labor analytics.

Running a small business is challenging enough without getting bogged down by HR paperwork and tedious admin tasks. As your team grows, managing payroll, employee records, and compliance can quickly become overwhelming and eat into valuable time. There’s also an increased risk of errors, which could lead to compliance issues. Enter HRIS—Human Resources Information System. 

HRIS is a tool for taking the grind out of HR. It centralizes employee records, automates payroll, and ensures compliance with labor laws. It helps small businesses tackle the administrative side of human resources, which gives them back precious hours for employers to focus on growing their business. 

In this guide, we’ll break down exactly what an HRIS is and what to look for when choosing the perfect system for your team.

What is HRIS?

These days, HRISs come in all shapes and sizes, each with its own set of features and complexity. But at the heart of it, they all help with core HR tasks such as time tracking, payroll, benefits management, and workflow creation. Plus, they store all critical employee information, from personal details to compensation data. In the past, HRIS was usually run on a company’s servers, but now cloud-based platforms are the go-to. And for good reason—they’re much more efficient, letting you access anytime, from virtually any device.

Why is an HRIS platform important for small businesses?

Because it saves time, which means small business owners can work smarter, not harder. 

Running a small business is all about staying focused on what keeps the wheels turning and being ready to seize opportunities when they come. That’s how small businesses grow. But when you’re stuck with admin tasks, it’s easy to lose sight of the bigger picture and miss out on opportunities to move your business forward. 

This is where HRIS can be helpful. It can simplify and automate time-consuming HR tasks, and with the right system, you can take your hands off things like:

  • Managing employee profiles
  • Storing crucial employee data for classification, compliance, and payroll
  • Monitoring PTOs and leave balances
  • Viewing and approving timesheets
  • Processing payroll and sending out pay stubs
  • Letting employees view and update their own information

Imagine all those processes running smoothly in the background. The time you’d save could be redirected to strategic planning and business growth.

HRIS vs. HRMS vs. HCM

If you’re exploring HR software, you’ve likely come across HRIS, HRMS (Human Resource Management System), and HCM (Human Capital Management). But what’s the difference? 

While they are often mixed up, and there are overlaps in their functions, they have distinct focuses. 

HRIS focuses on core administrative HR tasks, such as managing employee data, processing payroll, tracking time and attendance, and ensuring compliance with regulations. Its primary purpose is to centralize and automate HR processes, reducing paperwork and manual effort. HRIS streamlines day-to-day operations and handles basic HR functions.

HRMS includes all the functionalities of an HRIS but goes a step further by adding talent management tools, which includes tools that help with performance reviews. This means it not only manages employee records and payroll but also supports the recruitment process, helps with onboarding new hires, and tracks employee performance and development. In other words, HRMS brings a more strategic HR approach and goes beyond the administrative aspects.

HCM encompasses both HRIS and HRMS functions but expands to cover the entire employee lifecycle. It’s not just about managing data and processes—it’s about optimizing the workforce as a critical business asset. HCM systems help with workforce planning, succession planning, compensation analysis, and labor compliance with local and international labor laws. They also have tools to improve employee engagement and satisfaction. This makes HCM ideal for rapidly scaling businesses looking to align HR functions with broader business goals.  

Also read: 11 HR Basics for Small Businesses

How to choose the best HR system for a small business? 

Selecting an HRIS can take 15 weeks on average, according to a study. But if you’re looking to streamline your HR now, that can be a long time. Since every business has different needs, there’s no one-size-fits-all software solution. To speed up the decision-making process, here are some key factors to focus on to help you find the best fit:

HR needs

Start by identifying what you need from HRIS, or any HR platform for that matter. Figure out your pain points. What’s slowing you down? Are you buried in paperwork or struggling with employee data management? In that case, a basic HRIS can do the trick. Need help with more strategic tasks with succession planning? Then, an HCM system might be a better fit. 

Go deeper. Take a look at the types of employees you hire. Is your team composed of more hourly people, or is most of your workforce salaried? How often do you need to onboard or hire workers? Do you hire seasonal staff? The more specific you get about your needs, the easier it will be to choose a system that checks all the boxes.  

Budget and ROI

Determine your budget upfront. How much are you willing to invest, and how much flexibility do you have for extra features that might increase costs? Think about the expected return on investment (ROI). Will this system save you enough time and resources to justify the price? 

You must also aim to go for a vendor that has the most transparent pricing. Inquire about what’s included in their packages and be sure to asks if there are additional charges and when those will apply.

Ease of use

A feature-packed system won’t help if it’s too complicated to use. If your team can’t get the hang of it, you might as well stick to manual processes. Look for a system that’s intuitive and with a smooth learning curve, especially if you want to hit the ground running as soon as possible.

Consider employee self-service functionality too. A huge part of HRIS is employee data. And aside from your HR team, your employees are also responsible in part for their data. Having a self-service portal feature lets your employees view and update their information, and that could be a key consideration when looking at different HRIS solutions.

Integration 

If you have existing systems, ensure your new HR system integrates smoothly. How quickly can the systems sync? What will the workflow look like? If integration is clunky or non-existent, that defeats the purpose of streamlining, so it’s worth moving on to a different option.

Implementation and support

You can only realize ROI with your HRIS once it is completely implemented. So, when shopping around for software and going through demo sessions, always ask vendors how long it will take to get up and running based on your specific needs.

The level of customer support during the early stages of implementation is also crucial. Will they guide you through the setup process and be available for ongoing help? Choose a provider that won’t abandon you once the contract is signed.

Scalability

If your business rapidly grows, can the software stay pace? It should be able to scale as quickly as you will. Otherwise, the system could become obsolete and incompatible with your requirements. Considering the cost of a new system and the learning curve involved in implementing it, it won’t be cost-effective in the long run. When you choose software, ensure it can handle future growth, and can be customizable enough when you need additional hr tools or modules.

Reputation

Check out a vendor’s track record and client base. Look at their customer stories, case studies, and online reviews. That can help you understand how their product works in different business scenarios and the problems they were able to solve for their clients. This will give you insight into their reliability and whether they’re the right fit for your business.

Why Workforce.com is the best HR software for small businesses with hourly teams 

Workforce.com isn’t just another HR platform—it’s built for businesses that rely on hourly workers. Whether in retail, hospitality, healthcare, or any sector with hourly workers, Workforce.com covers your HR needs, workforce management requirements, and delivers much more. Here’s why it’s the best choice. 

It simplifies HR administration and payroll.

Workforce.com does the heavy lifting that comes with the administrative aspects of HR, from recruitment, onboarding, time and attendance tracking, benefits administration, and payroll processing. 

Fill vacant roles easily with Workforce.com’s applicant tracking system. Speed up the hiring process by generating QR codes for job postings and allowing applicants to submit their personal details and answer role-specific questions. This helps identify qualified, saving you time on unnecessary interviews.

No more drowning in paperwork during employee onboarding. Workforce.com collects crucial employee details like tax forms, insurance information, bank details, and other personal employee information, saving time and reducing manual data entry. You can focus on welcoming and integrating new hires into the organization instead of processing forms.

Time and attendance tracking is also automated. Employees can clock in and out seamlessly, ensuring accurate hours and smooth payroll runs. You can review and approve timesheets online, quickly correcting any issues so payroll stays on track.

With all this data in one place, payroll processing becomes faster and more efficient. Overtime, time off, employee benefits, and other pay rules automatically apply, ensuring you always comply with labor regulations. Workforce.com’s payroll system also helps with withholding taxes and tax filing, saving you a massive amount of time and lets you shift your focus to growing your business.

It streamlines employee scheduling.

Workforce.com is built with a robust scheduling platform that lets you create and assign shifts in minutes. It has scheduling templates that you can copy and paste from one week to next, especially for shifts that remain the same over a period of time. Its built-in labor forecasting feature allows you to schedule shifts based on projected demand to confidently avoid being over or understaffed.

For businesses governed by predictive scheduling laws, Workforce.com helps you stay compliant by enabling faster scheduling and allowing you to send work schedules to employees well in advance. This keeps your team and regulators satisfied while providing employees with more flexibility and boosting their job satisfaction.

Also read: Predictive Scheduling Laws Explained: A Guide for Employers

It helps you retain top talent.

Workforce.com doesn’t just handle administrative tasks; it’s designed to help you retain your best workers. It includes tools for communication, feedback, and performance management to keep employees engaged and motivated.

Managers and employees can communicate directly within the platform, cutting down on confusion. Employees can also rate their shifts, giving you insights into what’s working and what needs improvement. This allows you to make real-time adjustments before minor issues become big problems.

It also has features that allow you to track action plans for employees who need to improve in certain areas and quickly show recognition for staff who are performing well. 

It scales with you.

Whether growing locally or expanding across state lines, Workforce.com scales with you. It manages everything from hiring to compliance, no matter the size of your business.

As you expand, the platform ensures you stay compliant with different labor laws across regions, so you won’t have to worry about legal complications.

On top of that, Workforce.com provides valuable insights into your business operations, helping you track labor costs, absenteeism, and other vital metrics. This allows you to spot patterns and fix potential issues before they impact your business.

It’s easy to use.

Workforce.com has a user-friendly interface, which means that your team can learn the ropes of the platform in no time. It also has a mobile app that employees can download on their devices, letting them view their schedules, receive notifications from their team, apply for leaves, and update their information.

It has a proven track record.

Amenity Collective, one of Workforce.com’s clients, have seen a reduction in administrative work by 85%. They are just one of the many organizations that switched to Workforce.com and experienced great results. Don’t just take our word for it—explore their testimonials and stories firsthand. 

Even better, book a demo today to see Workforce.com in action and discover how Workforce.com can drive growth and success for your business.

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California Pay Transparency Law: How to Comply and Promote Fair Pay

Summary

  • California has strict pay transparency laws that require employers to include pay ranges in job postings. Current employees also have the right to request pay scale information at any time.
  • While these laws promote fairness and build trust, they can also create challenges, particularly with recordkeeping and other administrative tasks.
  • HR and payroll software can simplify compliance and help businesses stay organized.

Pay transparency is a strategy to attract talent and retain current staff. In California, pay transparency is backed by a series of regulations, one of the most recent being Senate Bill 1162. 

With the bill’s enactment, employers in California must be upfront about pay scales and clearly communicate them to candidates and current employees. While the bill intends to promote transparency, retention, and engagement, putting it into practice isn’t always straightforward, especially for employers who handle various job positions, locations, and levels of expertise. 

​​So, what does the bill require, and how can hourly workforces implement these rules? Let’s take a closer look.

What is California Senate Bill 1162?

California SB 1162 is legislation that aims to promote transparency in pay scale disclosure. It requires employers to reveal pay ranges in job postings, submit pay data reports, and take steps to uphold pay transparency in the state. It went into effect on January 1, 2023.

Essentially, this bill encompasses transparency with job listings, current employees’ right to know, and recordkeeping and applies to California employers with 15 or more employees. Here are some fundamental points that the bill entails:

  • Employers must disclose the pay range for a position in any job listing. If you employ a third-party recruitment agency, they should also include pay information in their job descriptions and job posts. 
  • Should current employees request it, employers must provide the pay scale of their position. 
  • Employers must keep records of each employee’s job title and wage history for the duration of the employee’s employment and three years after the end of employment. This information must always be ready for inspection by the Labor Commissioner’s Office. 
  • If an employee files a complaint and pay records are not available, it could be a point against the employer in court. 
  • Failure to comply can result in investigations by the Labor Commissioner. If violations are proven, penalties can be imposed. 
  • If someone is “harmed” based on this legislation, meaning they didn’t get any pay information as stated in the law, they can sue the company or seek legal remedies by taking them to court.

SB 1162 basically makes pay information more transparent and accessible, helps employees understand how much they can earn, and ensures that companies have the pay records and information to justify their pay decisions.

Other California Laws on Pay Transparency

California is known for having some of the most comprehensive employment laws, such as overtime pay and cell phone usage laws. The state takes the same thorough approach to pay transparency and disclosure requirements. Aside from SB 1162, here are other relevant state laws.

Pay Data Reporting

Under Senate Bill 973, private employers with 100 or more employees must submit an annual report on pay data to the California Civil Rights Department. SB 1162 expanded this and included rules on pay scale transparency and record keeping. The annual pay data report must cover pay information by race, ethnicity, and gender with specific job categories and is due every second Wednesday of May.

Salary History Ban

Aside from pay transparency and reporting, California Assembly Bill 168 also prohibits employers from asking about an applicant’s salary history or using their past pay information to make a salary offer. Employers, however, can ask applicants for their expected salary.

Wage Theft Protection Act

This act requires employers to provide a notice that contains specific information once they hire an employee. It should include:

  • Rate or rates of pay and if it’s paid by the hour, shift, day, week, salary, piece, or commission. 
  • Overtime rate
  • Applicable allowances that count toward minimum wage, such as for meals or lodging
  • Regular payday
  • Employer details such as name and other names they do business under, physical and mailing address, telephone number
  • Contact details of employer’s worker’s compensation insurance carrier
  • Any other necessary information deemed by the Labor Commissioner

Should the said notice change, employees must be notified in writing within seven calendar days unless the changes are reflected on the next pay stub or another legal notice with the updated details is issued within seven days. 

Whistleblower Protection and Anti-Retaliation Law

California offers another layer of protection for employees who report disparities in pay information. Under this law, an employer cannot retaliate against an employee who discloses information to law enforcement, an investigative body, or someone with authority to address the issue about a law violation, a regulation not being followed, or unsafe working conditions. 

Employees are also protected if they refuse to participate in activities they believe would break the law. Even if an employee hasn’t reported anything but the employer suspects they did, that employee is still protected under whistleblower laws. 

If an employer retaliates against a whistleblower, they may be required to reinstate the employee’s employment and work benefits, pay lost wages and civil penalties, and take other actions to comply with the law. 

The Impact of Pay Transparency Laws on Hourly Teams

Pay transparency laws can pose both advantages and challenges for hourly workforces. Such legislation helps enhance the employee experience, promote retention, and build trust. However, it can also come with administrative challenges, especially with recordkeeping and managing pay scales for each role. 

Benefits

Greater wage transparency

Employees value transparency, especially with pay ranges and information. Pay transparency laws promote fairness and avoid any wage disparities. Such regulations also open the floor for better wage discussions, which can lead to higher morale and increased job satisfaction.

Improved hiring and retentionIncluding pay ranges in job listings helps attract job seekers who are not only interested in the role but also comfortable with the offered compensation. This speeds up the hiring process by filtering out those with mismatched salary expectations. It also helps with retention because when employees know the pay range upfront, they’re less likely to feel blindsided or dissatisfied later on.

Challenges

Consistency with pay scales

Staying on top of pay ranges can quickly become complicated when wages vary by location or experience level. 

For example, the cost of living across cities can impact salary ranges. Typically, pay rates are higher in cities like San Francisco due to the higher cost of living compared to smaller towns, making it challenging to balance out pay ranges across multiple locations. 

Roles can also differ significantly, even if they share the same title. The same position might carry different responsibilities depending on the team or location. Additionally, ensuring pay equity between new hires and existing employees can be tricky.

With all of these factors in play, employers must carefully document pay ranges, justify their pay decisions, and comply with pay transparency regulations.

Wage increases and bigger budget allocations

Employers may have to allocate bigger wage budgets to maintain pay equity. Pay transparency laws may also prompt current employees to request wage adjustments if they find that their current pay is on the lower end of the scale. 

Recordkeeping

Complying with pay transparency laws involves meticulous recordkeeping. This can be especially true for big workforces that need to keep detailed records of all job titles and wage histories of employees across multiple locations. 

Employees’ preferences for specific shifts

For employers offering shift differential pay, transparency can influence employee preferences. Once pay differences are made clear, less popular shifts might become more desirable, leading to imbalances in shift coverage. Employers may need to rethink their differential pay strategies to ensure all shifts are adequately staffed.

How to Avoid Non-Compliance with Pay Transparency Laws

California’s pay transparency laws come with a lot of fine print, and it’s easy to unintentionally slip into non-compliance. To help you navigate these regulations, here are practical strategies to keep you on the right track:

Implement smart recruitment practices

Never forget to include pay ranges and other components of employee compensation on your job listings. This level of transparency not only keeps you compliant but also helps you attract job applicants who are comfortable with the pay offered, speeding up the hiring process.

Workforce.com’s applicant tracking system simplifies this by allowing you to use in-store QR codes to attract local talent. When candidates scan the code, they can instantly view the job opening and pay range. You can even add a follow-up question to confirm that they’re aware of the compensation package before proceeding with the application.

Optimize recordkeeping for audits 

Managing multiple pay rates is complex, and manual processes can quickly lead to errors and compliance issues. Automating recordkeeping is vital to staying organized and compliant. With the right system, you can easily store, retrieve, and sort pay data. No need to scramble to gather information during audits or employee requests. 

An automated solution keeps all pay info in one place, making it simple to pull up details anytime. If the Labor Commissioner knocks or an employee asks for their records, you’ll be ready.

Workforce.com makes it easy to keep employee records and pay data organized. Staff can access their information, and management can quickly pull reports for audits or compliance checks.

Keep employees informed of any pay-related information

Pay transparency isn’t just about disclosing wage ranges—it’s about keeping employees consistently informed. In addition to providing access to their wage details, make sure to issue regular pay stubs. Automating this process reduces administrative work and ensures compliance.

Pay stubs should clearly outline their wage rates, earnings, overtime, deductions, and withholdings. Workforce.com’s payroll software automatically generates detailed pay stubs each payday, giving employees easy access to their payment breakdowns and salary information.

Define pay criteria for pay variations

You need to keep a record of pay data and justify assigning pay ranges to a particular role. Establish a clear policy that defines your pay scale criteria, such as experience, location, shift differentials, and team assignments. Communicate these criteria to employees so they understand how pay ranges are determined.

Provide training and support to HR and managers

Pay discussions can be sensitive, and managers must know how to handle them appropriately. Provide training and guidance on how to effectively address pay scale inquiries and manage pay adjustment requests. Equip them with the information and talking points that will allow them to explain company decisions clearly. 

Simplify compliance with Workforce.com

Complying with pay transparency involves handling data and keeping its integrity intact. Workforce.com is an end-to-end HR, payroll, and scheduling system designed for the needs of hourly teams, including labor compliance. It helps eliminate the administrative burden that can come with complying with intricate laws such as California’s pay transparency laws. It has one source of information, which means that the chances of errors or things falling through the cracks are minimized. 

Discover how different businesses stay on top of labor laws while keeping their teams efficient with Workforce.com. Book a call today. 

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Free Employee Change of Address Form [Template]

oil painting of someone carrying moving boxes

Summary:

  • Federal and state laws govern how employee records are kept and for how long. These rules can differ by location and industry.

  • Managing employee records is a tall order, but HR software keeps thing simple, allowing staff to update their own info digitally.

  • Download and modify this employee change of address form template for free.

With a small staff count, organizing, tracking, and updating employee records is relatively straightforward for any HR department. But if you have a rapidly scaling business, staying on top of personnel information might be a little more challenging. 

To keep things organized in all of this chaos, you need to keep accurate records. When an employee’s mailing address needs to be updated, you’ll need to rely on more than just word of mouth to get this information processed. 

Many HR departments use a change of address request form. Download ours here – feel free to copy, save, and modify it. 

Using a simple form like this is only the first step in accurate record-keeping. It is 2024; let’s be honest, people don’t use printers anymore. Or at least they shouldn’t be. 

Well, that might be a tad extreme. But you know where I am going with this. 

All kinds of records, such as employee names and emergency contact details, will change over time. Add leave request forms, benefits enrollment, and other templates into the mix, and you’ll realize how quickly recordkeeping can become an administrative burden. 

Paper forms < Going paperless; Here’s why. 

Luckily, you can avoid repeatedly downloading 15+ paper forms to manage your workforce records by using HR software. 

Here are three ways where HR software can help you get a better grip on employee record-keeping:

1. United employee records in one place.

You can collect all of your employee information in one system without storing random paper forms in dusty, beige filing cabinets scattered around your office. Typically, organizations keep some form of the following employee details: 

Time and Attendance

This information is essential to staying on top of your day-to-day operations. This includes records on the clock ins and outs, time off, employee schedules, tardiness, absences, and hours worked. 

Benefits

Insurance enrollments, health coverage, and other company benefits all fall under this category. It can also include records involving the Americans Disabilities Act (ADA), the Occupational Safety and Health Administration (OSHA), and the Family and Medical Leave Act (FMLA). Staying on top of these records will help you comply with federal laws like the Employee Retirement Income Security Act (ERISA).

Payroll

Details that have something to do with a person’s pay computation go under payroll information. Details like wages, hourly rates, withholdings, tax forms, timesheets, direct deposits, and W2 and W4 forms all fall under one umbrella. 

Personnel information

These are basic details that typically go under an employee’s file. This includes name, home address, phone number, employment history, emergency contact information, and other new employee paperwork. Over time, this file will consist of documentation around performance reviews, awards, disciplinary records, training, termination, and further employment-related details. 

Medical records

Medical records include doctor’s notes, drug tests, medical exams, and medical expense reimbursement requests.

Separation of employment records

These records are related to an employee’s departure from the organization, including resignation letters, unemployment documents, reasons for separation, whether voluntary or involuntary, and exit interviews.  

2. Compliance with employee record-keeping rules

There are federal rules and state-based rules that govern the type of information you can retain and for how long. Here’s a brief overview of some of these regulations:

Fair Labor Standards Act (FLSA)

Federal and state-based rules govern the type of information you can retain and for how long. Here’s a brief overview of some of these regulations:

        • Employee’s full name and social security number
        • Address, including zip code
        • Birth date, if younger than 19
        • Sex and occupation
        • Time and day of week when employee’s workweek begins, hours worked each day, and total hours worked each workweek
        • Basis on which employee’s wages are paid
        • Regular hourly pay rate
        • Total daily or weekly straight-time earnings
        • Total overtime earnings for the workweek
        • All additions to or deductions from the employee’s wages
        • Total wages paid each pay period
        • Date of payment and the pay period covered by the payment

Department of Labor (DOL) rules also state that payroll records and collective bargaining agreements must be kept for three years and timesheets for two years. 

Equal Employment Opportunity (EEOC)

This regulation states that employers retain employee records for a year. Should a staff member get terminated, their personnel records should be kept for one year after their departure from the company. 

Internal Revenue System (IRS)

Under IRS rules, employment tax records should be kept four years after filing the 4th quarter of the year. Some of these records include employer identification numbers, fair market value of in-kind wages paid, and copies of employees’ and recipients’ income tax withholding certificates. 

Genetic Information Nondiscrimination Act (GINA) and Americans with Disabilities (ACT)

Both acts mandate that medical information be kept separate from general personnel files. This includes doctor’s notes, disability benefits claim forms, drug or alcohol tests, FMLA requests, ADA requests and documentation, workers’ compensation records, medical exams, health insurance forms, employee assistance program information, and medical expense reimbursement requests. 

3. Saving time with self-service

The most efficient way to update records is to have staff do it themselves. HR software typically offers employee self-service functionality that allows employees to handle their own recordkeeping, often through a mobile device. With this, they can take ownership of updating their details without having to submit support tickets to HR.

Workforce.com makes employee recordkeeping easy.Screenshot of an employee profile in Workforce.com

Workforce.com is a cloud-based HR system specialized for hourly workforces. It offers complete visibility over employee information, documents, contracts, forms, and other data vital to running your workforce. It’s also built with an employee self-service feature that allows staff to update their details without bothering HR. Likewise, HR managers can configure notifications so they never have to dig to find information on form acknowledgments, onboarding reminders, PTO requests, attendance issues, etc.

Book a call today to get started on ditching paper forms.