Tag Archives: labor cost

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.

Would you hire a dog to represent you in a lawsuit?

Or worse, would your represent yourself?  Of course not.  You would hire a lawyer. 

Well, first you would ask friends, family and other business associates for their recommendations.  Then you would meet with a handful of these recommendations.  Make a decision based on their expertise and your specific needs and away you go.  Right? 

Why not take the same steps when thinking about your company’s human resources?  Most likely, if you are a small business, the idea of hiring a certified HR professional is daunting.  The labor cost for that individual is prohibitive. 

Your employees are most likely your most valuable asset, but they can turn on you.  That is why a professional employer organization (PEO) is the most cost-effective way to keep your employees happy.  And trained.