Why You Shouldn’t Use Your HRIS for Performance Management

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You're considering a separate performance management software, but your HRIS offers something similar. In the end, you might choose what appears to be the easier option—sticking with your HRIS and purchasing the "performance tools" they offer.

Sadly, HRIS tools aren't meant to drive employee performance and business success, so it's only a matter of time before you regret your decision. Without the right tools in place, you risk onboarding an entire organization to your new performance management system only to find out it’s not functional, scalable, or customizable the way you need it to be. 

If your organization really cares about building a modern performance management program, your HRIS isn't going to cut it.

Read on to find out why you shouldn't use your HRIS for performance management—and why finding reliable tech, expertise, service, and results is the way to go.


What is HRIS?

HRIS (Human Resource Information System) is a comprehensive software system that streamlines and automates various human resource management tasks, including employee data management, payroll processing, benefits administration, recruitment, performance evaluation, and more. It acts as a central repository for employee information, providing HR professionals with the tools and data needed to make informed decisions, enhance workforce productivity, and ensure compliance with labor laws and regulations.

However, it's important to note that while HRIS systems offer significant benefits in terms of data management and process automation, they typically focus on HR functions alone

In contrast, employee success platforms provide a broader range of tools, encompassing not only HR tasks but also employee engagement, performance management, talent development, and more.


What are the common features of HRIS?

HRIS software has been around for decades and is the go-to solution for many organizations. HRIS is designed to streamline and optimize various HR functions, making HR management more efficient and effective. 

While specific features can vary between different HRIS platforms, common functionalities include:

  • Employee Data Management: HRIS systems serve as a centralized database for employee information. They allow HR teams to store, update, and access employee records, including personal details, employment history, certifications, and more.
  • Payroll Processing: Many HRIS solutions offer payroll processing capabilities, automating tasks like calculating salaries, managing tax deductions, and generating paychecks. This reduces errors and ensures compliance with tax regulations.
  • Benefits Administration: HRIS systems assist in benefits management by tracking employee enrollment, managing benefit plans, and handling open enrollment processes. They help employees understand and select the right benefits for their needs.
  • Time and Attendance Tracking: These systems often include time and attendance modules that allow employees to clock in and out electronically. This data is integrated with payroll, making it easier to calculate wages accurately.
  • Performance Management: HRIS platforms may include features for performance appraisals, goal setting, and feedback collection. This aids in tracking employee progress and aligning individual goals with organizational objectives.
  • Recruitment and Applicant Tracking: HRIS systems help HR departments manage the recruitment process efficiently. They allow for job posting, applicant tracking, resume parsing, and interview scheduling.
  • Compliance Management: Many HRIS solutions include compliance features to ensure that the organization adheres to labor laws and regulations. This can include reporting tools for EEO (Equal Employment Opportunity) compliance and other legal requirements.
  • Training and Development: Some HRIS platforms offer tools for managing employee training and development programs. This can include tracking training progress, certification management, and scheduling training sessions.
  • Reporting and Analytics: HRIS systems generate various reports and analytics to help HR professionals make data-driven decisions. This can include turnover reports, headcount analysis, and other HR metrics.

As we’ve stated, HRIS solutions are almost always 100% geared towards the HR function and don't always provide the tools, analytics, and functionality for HR to become a larger strategic partner.


What are the pros and cons of HRIS?

Strengths of HRIS Limitations of HRIS
Efficiency: HRIS systems excel at automating routine HR tasks, saving time and reducing errors. Strategic HR: While HRIS can handle administrative tasks efficiently, it may not provide the strategic insights and tools needed for long-term workforce planning.
Data Management: They serve as comprehensive databases for employee information, ensuring data accuracy and accessibility.

Employee Engagement: HRIS systems are primarily transactional and may lack features for enhancing employee engagement and experience.

Compliance: HRIS platforms help maintain compliance with labor laws and regulations through reporting and tracking features.

Talent Development: They may not offer robust talent development and learning management features to foster employee growth and skills development.

Payroll Processing: HRIS systems streamline payroll tasks, from calculating wages to tax deductions, minimizing payroll errors.

Advanced Analytics: While they provide basic HR metrics, HRIS systems might not offer advanced analytics capabilities for predictive HR insights.

Recruitment: Many HRIS platforms include applicant tracking systems, simplifying the recruitment process.

Complex Workflows: Complex HR processes requiring multiple approvals and custom workflows may not be easily accommodated by all HRIS systems.

Cost Savings: Automating HR processes can lead to cost savings through reduced manual labor and fewer errors.

Employee Self-Service: While some HRIS systems offer employee self-service features, they may not provide advanced self-service options for employees.



Why you shouldn’t rely on HRIS for performance management

While HRIS platforms offer a range of benefits for HR departments, they may not be the ideal choice for managing employee performance. 

Here are several reasons why HRIS may fall short in this crucial aspect of HR management:


1. Limited Performance Features

HRIS systems are primarily designed for administrative tasks like employee record-keeping, payroll, and benefits management. While some include basic performance management features, they often lack the depth and flexibility required for a continuous and modern approach to performance management, including ongoing 1-on-1s, robust performance evaluations, 360 feedback, and development plans.


2. Lack of Employee Focus

Effective performance management should prioritize employees' growth, engagement, and development. HRIS systems tend to be more transactional and process-driven, focusing on data management and compliance. This can hinder efforts to create a performance-driven culture.


3. Complexity of Performance Processes

Many organizations have advanced performance management processes that involve various stages, from goal setting to continuous feedback and coaching. HRIS systems may struggle to accommodate these complexities, leading to manual workarounds and inefficiencies.


4. Limited Access to Impact ROI

While HRIS may help you perform your daily tasks better, it doesn’t quite close the loop when it comes to understanding how your performance management processes are impacting key impact metrics, like employee engagement. HRIS doesn’t allow your HR teams to continuously collect (and report on) feedback about performance management processes which leaves HR to make decisions based on hunches, not data. 

Modern performance management emphasizes ongoing feedback, coaching, and fostering a culture of continuous improvement. HRIS platforms may not provide the tools and features needed to engage employees actively in these processes or capture the nuances of their performance. 


Download our comprehensive guide to learn how to evolve your approach to  employee performance management

5. Inadequate Analytics

Advanced performance management requires robust data analytics to identify trends, strengths, and areas for improvement. HRIS systems often offer basic reporting but may lack the analytics capabilities needed for in-depth performance insights.


6. Customization Challenges

Tailoring performance management processes to align with an organization's unique goals and culture can be challenging within the constraints of an HRIS. Customization options may be limited, making it difficult to adapt to changing needs.


Who should choose an employee success platform over their HRIS?

Integrated employee success platforms are a dynamic solution designed to meet the evolving needs of modern organizations committed to maximizing their talent potential. 

Wondering if a platform is right for you? Here’s a quick profile of organizations that are a good fit for a more advanced solution.

  1. Organizations That Value HR as Strategic Partners: When HR is freed from tedious, repetitive tasks, they have the bandwidth to move beyond tactics to embrace organizational growth. Employee success platforms give HR the tools they need to automate processes and become strategic partners, all while centering employee performance. 

  2. Forward-Looking Organizations: If your organization values continuous improvement, innovation, and adaptability, then an employee success platform aligns with your culture. These platforms empower organizations to stay agile and responsive to changing business environments.

  3. Growth-Oriented Businesses: Businesses aiming for expansion, whether in terms of size, reach, or market presence, can benefit from employee success platforms. They provide the scalability and adaptability required to nurture and develop a growing workforce effectively.

  4. Employee-Centric Cultures: Organizations that prioritize their employees' growth, development, and overall experience thrive with integrated platforms. These platforms put employees at the center, fostering a culture of engagement and performance improvement.

  5. Data-Driven Decision Makers: Organizations that understand the value of data in making informed decisions benefit from success platforms that offer advanced analytics. These platforms provide real-time insights into performance, engagement, and retention trends, helping leaders make data-backed choices.

But choosing a success platform doesn’t mean you need to leave your HRIS behind. In fact, there are a number of benefits when you use your HRIS in tandem with your employee success platform.


Unique Benefits of Integrating HRIS with Your Employee Success Platform:

1. Seamless Data Flow

Integrating HRIS with an employee success platform streamlines data sharing and ensures that HR, managers, and employees access accurate, up-to-date information. This eliminates data silos and reduces manual data entry, enhancing overall efficiency.


2. Holistic Talent Management

Integrated employee success platforms allow organizations to view talent management comprehensively. HRIS focuses on administrative tasks, while the success platform emphasizes engagement, performance, development, and retention. Together, they provide a holistic view of the employee lifecycle.


3. Personalized Development

The integration enables organizations to create personalized development plans for each employee based on their HR data and performance metrics. This tailoring enhances employee engagement, satisfaction, and retention.


4. Predictive Insights

By combining HRIS data with employee success metrics, organizations gain predictive capabilities. They can foresee retention risks, identify future leaders, and proactively address workforce gaps, leading to better succession planning.


5. Enhanced User Experience

Employees and managers benefit from a unified and user-friendly platform. It offers a seamless experience, making it easier for them to access HR data, performance insights, development opportunities, and feedback all in one place.


6. Agile Decision-Making

Employee success platforms empower organizations to make agile decisions in real time. Leaders can pivot quickly to address performance issues, create targeted development programs, and adapt strategies based on actionable insights.


7. Improved Employee Well-Being

Success platforms allow organizations to assess and support employee well-being comprehensively. By combining HR data with engagement and performance metrics, organizations can identify signs of burnout or disengagement and take proactive steps to address them.


8. Assured Compliance

Compliance with HR regulations is critical. Integration ensures that data used for compliance purposes, such as ratings and performance reviews, remains consistent with HR records, reducing compliance risks.

Fully integrating your employee success platform with HRIS extends the value of your HR technology stack. It transforms your HR department into a strategic partner, enhances employee engagement and development, and equips your organization to thrive in an ever-changing business landscape. 

Organizations that prioritize this integration benefit from a competitive edge in attracting, retaining, and developing top talent. It’s a win-win all around!


Seek a partner, not just a solution

At Quantum Workplace, we understand that selecting the right HR technology is a critical decision. It's not just about choosing a solution; it's about forging a partnership that empowers your organization. 

With Quantum Workplace, you're not simply investing in software; you're gaining a strategic ally dedicated to your success. We share your vision, align with your goals, and collaborate closely to solve your unique HR challenges. Our commitment extends far beyond the initial sale. We provide ongoing support, regular updates, and a roadmap that grows with your organization. Our user-centric design ensures high adoption rates, and our customization options fit your workflows perfectly. So you're not just getting HR technology; you're getting a trusted partner invested in your journey to elevate your workforce and drive business excellence. Discover the full potential of HR technology with Quantum Workplace. 

Request a demo today to experience the difference.

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Published February 17, 2022 | Written By Kristin Ryba