HRIS and HRMS for small businesses

We have seen this time and again.  In fact, we just got off the phone with a prospect that has an HRIS that will not allow for performance appraisals.  Okay, simple enough.  Whatever system they employ would have a module or an add-on that would allow for this functionality, right?

Well, who’s to know.  This prospect is a 50 person company that bought a system that is way over their heads.  The do not have an on-staff IT person.  The company they bought the system from does not return calls.  So now they need to either buy another system that can “talk” to their current system or hire an in-house IT person (labor cost on that is at least $50,000 annually).

What they should have done, and this is what we recommend to our clients and prospects with less than 1,000 employees and/or an IT staff that is not willing to put a couple of hours per day into HRIS, is to go with a pay-as-you-go HRIS that includes payroll and support.  The annual costs of this solution may look like more money at $250 – $400 per EE, but do the math on having to hire an IT person to run your HRIS.