HRIS Cost Justification for Investment Associates, Inc.
Human Resource Information Systems
After reading the case study of Investment Associates (p.150) in the test Human Resource Information Systems; Basics, Applications, and Future Directions, like Marian Sweet, I have little experience in the HR field yet we are required to oversee all of the HR functions as HR professionals. The same situation has occurred in the company I work for, we started with eight employees, now have twenty-nine and we will soon be purchasing another facility which will include at least ten more employees. The difference is Marian's boss is willing to help her get professional assistance and my boss tells me to call our attorney if I don't know the answers. Unfortunately, our attorney is not an employment lawyer and I am not so sure how much to trust his answers.
With a HRIS, I think both companies could benefit in numerous ways. The centralized computer program will help with reports thus saving time. In addition, it will cut down on human error and help ensure reports are filed timely and correctly. Providing enough pro's to prove a HRIS would be helpful shouldn't be difficult. First, I will start with identifying the HR metrics and how it can be used to justify the purchase of a HRIS. Next, I will show some of the costs and benefits of the investment of a new system. Then I will point out some of the common problems with a cost benefit analysis and how we can avoid these problems. Lastly, I will explain how variance estimates can be generated for a cost-benefit analysis which would be useful to company management. • Identify the ways that the HR metrics can be used to justify the purchase of an HRIS.
With the use of the HR metrics, the purchase of a HRIS can be justified in the following ways: measuring turn over rate, absence rate, health cost per employee, cost per hire, training investment factor, workers' compensation incident rates and severity rates just to...
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