How to Save Time and Money With an HRIS
Yes, an HRIS Is Really Worth the Cost!
ROI Calculator for HR Software
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Discover How Much You Can Save With HR Software
A human resources information system (HRIS) is software used to store, track, and process employee information. Much more than a handy tool, an HRIS can automate everyday HR functions like payroll and benefits administration. It also reduces your reliance on fragmented systems, aids in compliance, and reveals key data insights for better business decisions.
Companies lose thousands of dollars on inefficient people processes, and the impact on productivity stretches even further. ROI quantifies what your organization stands to gain by implementing HR software, specifically in these four key areas:
Onboarding
From coordinating paperwork and team introductions to setting up workstations and software permissions, a lot goes into onboarding new hires. All this happens before orientation even begins, but missing a step can prolong your new employees' ramp-up period and delay their time to contribution. The real kicker? HR professionals spend an average of 11 hours per hire juggling basic onboarding tasks.
Thanks to an HRIS, that average drops to 5.5 hours per employee. It frees up valuable time for you to create a great new-hire experience, help them hit the ground running, and improve long-term retention.
Recordkeeping
Swapping out handwritten signatures for e-signatures with HR software saves about two hours per document. If the onboarding process requires an average of 15 documents, this small upgrade can save the equivalent of a part-time employee’s workweek—giving HR more time to focus on people work instead of paperwork.
As for the paperwork, electronic signatures save an average of $300 per new employee in printing, faxing, and copying documents. That’s great for the environment and your budget.
Administrative Tasks
The average HR professional spends five hours per day on administrative tasks, such as data entry, compliance management, responding to employees, and more. This figure also includes the time spent transferring information from paper forms to digital systems.
Cloud-based HR software with employee self-service tools eliminates much of this manual or redundant work and reduces the average administrative workload to three hours per day. This gives HR and employees more time to collaborate, focus, and develop professionally each workweek.
PTO Tracking
Employees take an average of three unreported PTO days per year. This might not seem egregious, but those absences impact productivity and can lead to excess payouts when people leave the company. With an average salary of about $31.48 per hour, the cost of three unreported days off comes in at $756 per year for each employee.
HR software makes it easier to request, approve, and track time off, creating a more accurate, transparent system. Simpler PTO management also encourages employees and managers to communicate their time-off and coverage needs more efficiently and well in advance, with confidence in the process.
![Customer quote from Devra Fregin, Practice Manager at Clinica Colorado: "It’s so clean, so easy to find things you’re looking for. I like that it’s all in one place. I can go into BambooHR, go through the timecards, eyeball them to make sure there isn’t anything that looks out of the ordinary, then click on payroll and [all the information is there]. It’s just one login, one system."](./media_131a82057f8ea19263d72c419adc5640045bcdefb.png?width=750&format=png&optimize=medium)
The Gold Standard for HR Software ROI
Depending on the organization, a good ROI for software could range anywhere from 5% to 20%. But don't be deterred by a low initial return rate—it'll likely be different a year from now because upfront costs are typically higher.
After all, consider the time it takes to educate your team about upcoming changes, implement the software, and train people on how to use it. You may also have to troubleshoot minor issues as your organization gets acclimated. But once you're up and running, your ROI should grow into a more reliable benchmark.
The Top 5 Benefits of an HRIS
1. You can get more done.
Say hello to a new streamlined workflow. From payroll processing to performance management, automated tasks save time on repetitive processes. HR software also increases transparency, which boosts efficiency. Breaking down silos allows everyone to access the information they need, and instant data insights help you make informed decisions that support company growth.
2. Secure software lowers costly compliance risks.
As an HR professional, you handle sensitive information every day. Replacing paper filing systems with digital data management provides greater security, minimizing costly fines and legal risks for your company. An HRIS also helps reduce payroll mistakes. Whether it's incorrect time tracking or tax document errors, all-in-one HR software can save thousands of dollars each year in avoidable company expenses.
3. More productivity means more savings.
If you're looking for a way to consolidate tech spend, an all-in-one HRIS can do just that. Customers using software like BambooHR report saving up to 16 hours a week, leading to nearly $27,000 in cost savings per year.
When everything works together, you can prioritize the strategic work that cuts costs further. For example, an applicant tracking system (ATS) can help you find the most qualified candidates and employee wellbeing tools can reduce turnover, saving an average of $4,700 for each new hire who stays long-term.
4. It's easy to use and easy to switch.
User-friendly HR software is simple to learn and incorporate into your everyday routine, helping you do your job even better. It's easier to track hours, manage benefits, and run payroll, and it's easier for employees to access and edit their own information. And if you ever get stuck, an HR platform backed by a responsive support team can help you get back on track.
5. Integrations add value.
An HRIS with an open API can tie into the tools you already know and love. In fact, 62% of our customers use integrations from the BambooHR Marketplace, taking advantage of 8 apps on average. And a single source of data doesn't just mean fewer vendors and headaches—when all your systems pull from one system of record, your workflows share the same level of intelligence, accuracy, and efficiency.
The Average Cost of HR Software
Monthly HR software costs range from $35 to $99 for the system, plus $5 to $8 per employee. HRIS pricing typically depends on the number of administrators, capabilities, and other factors, so it's important to do your homework.
BambooHR customers pay on a per-employee, per-month basis. There's no long-term contract—you simply pay a flat rate for a flexible HR software plan that suits your company's needs. Plus, you can earn discounts on software bundles and save even more as your company grows.
Designed for businesses of all sizes, BambooHR helps you find and onboard the best talent, manage payroll, time, and benefits, and enhance the employee experience. Our all-in-one HR software keeps everything in one place and connects to over 100 integrations, so you never miss a beat.
Save Time and Money With BambooHR's Award-Winning HRIS
We believe BambooHR is the best HRIS around. (Can you blame us?) Award-winning service and support are part of the package—we truly love helping HR heroes bring their A-game to work every day, and our HR software is backed by real people ready to help when you need it most.
BambooHR is rated 9.3 for ease of use on G2 and also comes highly recommended by reviewers via PCMag, GetApp, and other sources. We love getting feedback about our HR software and we're always improving! Check out a few of our awards:
Make Your HR Easier for All Your Employees
With BambooHR, executives get insights to make better workforce decisions, HR gets resources to build supportive workplaces, and employees get the power to shape their success.
How to Calculate ROI
Keep in mind that HR software comes with tangible and intangible rewards. As you're linking dollar amounts and time saved to justify the added expense to key decision-makers, consider other benefits like:
- How more opportunity to design and execute company programs boosts employee retention, engagement, and job satisfaction
- How greater autonomy helps employees feel more invested in their roles
- How better communication builds a foundation of trust for employee advocacy
- How minimizing human error and risk protects your employer brand
Explaining the broader potential of an HRIS helps your stakeholders see its inherent value, while also solidifying the employee buy-in needed to support its success.
See BambooHR in Action
Go beyond the averages and calculate the impact BambooHR can have on your organization—both on the balance sheet and in the employee experience.
About BambooHR
BambooHR® brings together everything from hire to retire, helping businesses create amazing workplaces.
With our complete HR platform, you can easily hire and onboard top talent, manage time, payroll, and benefits, analyze employee data, and more. Our mission is to set you free to focus on what matters most: your people.
To find out more, visit bamboohr.com or follow @bamboohr on social media.
Our Methodology
The data analysis for this report was generated using Qualtrics software, Version July 2024 of Qualtrics. Copyright© 2024 Qualtrics. Qualtrics and all other Qualtrics product or service names are registered trademarks or trademarks of Qualtrics, Provo, UT, USA. https://www.qualtrics.com
All source data was retrieved between July 2023 and August 2023, and includes 1200 respondents who have HR responsibilities at organizations within the US.
Industries included are healthcare, finance, construction, travel and hospitality, restaurant and food and beverage, education, technology, and more.