Human resources are the first factor that constitutes a business, and are also the factor that determines the success or failure of that business. A business that wants to develop needs to know how to manage and control the resources in its hands.
The wave of technological advancement has revolutionized every space of life today and it is no exception to the human resources industry. HRIS was born as a tool to help businesses have a proper management strategy, use and develop human resource systems in the most effective way.
1. What is HRIS?
1.1. Define
HRIS (abbreviation for Human Resources Information System) means Human Resources Information System, also known as Human Resource Management System, a platform that collects and stores information related to all personnel in the organization. an organization or business.
1.2. Functions of an HRIS software
A typical human resources department functions to track existing employee data, including personal history, qualifications, experience, achievements, and compensation. To reduce the manual workload of this administrative activity, organizations are starting to automate processes using specialized human resource management systems, such as HRIS. According to Gartner, 30% of mid-sized and large businesses globally will use cloud-based toolsets for HR tasks by 2020.
Today, 4.0 technology is widely covered, even artificial intelligence (Artificial Intelligence – AI) and machine learning technology (Machine Learning – ML) have played an important role in many management and operations operations; So it is not difficult to understand that businesses have been looking to HRIS more and more as a modern system for human resource management.
HRIS vs PEO what is the right match for you?
>>>Read more: Human Resource Compliance in Vietnam
2. What is PEO?
2.1. Define
Professional Employer Organization, abbreviated as PEO, operates as a co-employer, providing a full range of human resources services for businesses. The core of a PEO is outsourcing key HR functions such as payroll, benefits management, training, and labor law compliance. Thanks to that, businesses can focus on key competencies and minimize legal risks.
PEO is a human resources outsourcing service often chosen by small businesses and startups lacking human resources. However, any business can benefit from the PEO model to access expertise and scale. According to research, the PEO market is growing thanks to leaders recognizing the benefits the service brings.
2.2 So what services does PEO provide?
It is about diversifying human resources services that are convenient for businesses. Comprehensive PEO provides comprehensive human resources services including:
-
Recruiting and selecting talent: An important benefit when cooperating with a PEO is to take advantage of professional experience in attracting human resources. PEO assists in developing job descriptions, recommending reasonable salaries, advertising recruitment, filtering resumes, checking backgrounds and organizing interviews.
-
Managing salaries, bonuses and tax obligations: PEO's key service is to handle the process of processing salaries, bonuses, as well as tax obligations. This work includes salary payment, quarterly tax reporting, payment of personal income tax on behalf of the employee, providing tax deduction invoices and completing year-end tax declaration forms.
-
Benefits management: PEOs manage health insurance, retirement accounts, paid time off and employee benefits programs. This includes managing supplier relationships, registrations, changes, handling inquiries and coordinating termination benefits.
-
Risk management and compliance: PEO regularly updates labor laws to ensure client compliance. They also assist in purchasing business insurance, monitoring workplace accidents for compensation, and implementing safety measures.
-
Training and development: Some PEOs provide access to online training platforms on topics such as harassment, discrimination, diversity awareness, and leadership development. This helps businesses invest effectively in improving employee capacity.
3. Signs that you really need an HRIS and PEO system
3.1 None of your systems fit together
In a multitasking environment like human resource management, businesses have many different processes – each of which requires a certain solution.
For example, when recruiting for a new position, the human resources department will need a system to track candidates as well as orientations for recruitment such as payroll, benefits, training support, etc. After they become employees. Employees and human resources departments need to plan, manage timekeeping, manage performance, etc. If all of these tasks are not synchronized with each other, the human resource foundation will be broken and the business will quickly go out of business. at a deadlock in the management of the sphinx.
PEO vs HRIS: Understanding the Differences
3.2 Spreadsheets are becoming too confusing
Many businesses have a habit of using Excel for everything. A Google Sheet is completely unsustainable because it is not designed to be managed. Over time, data in spreadsheets will become complex, outdated and the risk of data security vulnerabilities is very high.
A human resources information management platform needs to store data and records in a smart and simple way – easily accessible to track employee-related data but must also ensure security.
3.3 Custom reports required
There are many jobs that businesses need to work with data. So why are so many people still trying to work with outdated or cumbersome reporting systems? A human resources management platform will provide automated customized reports, supporting businesses in tracking and making human resource decisions.
CONTACT FARO VIETNAM today for PEO and HRIS consulting.
-
Faro Vietnam
-
Email: service.vn@farorecruitment.com
HANOI HEAD OFFICE: Unit 701A, Tower A, Handi Resco Towers, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam
HO CHI MINH CITY OFFICE: 6th Floor, Saigon Finance Center Tower, 9 Dinh Tien Hoang Street, Dakao Ward, District 1, Ho Chi Minh City, Vietnam
Grow your business with our trusted Human Resource Solutions.