Top HRIS Features Every Philippine Company Needs

May 28, 2024

As businesses in the Philippines continue to grow and evolve, managing human resources effectively becomes increasingly complex. Human Resource Information Systems (HRIS) are essential tools that help companies streamline HR processes, ensure compliance, and improve overall efficiency. Whether you are a small business or a large corporation, choosing an HRIS with the right features can make a significant difference in managing your workforce. This article explores the top HRIS features that every Philippine company needs, with insights based on local labor laws and business practices.

 1. Comprehensive Payroll Management

A robust payroll management system is the cornerstone of any effective HRIS. This feature should automate payroll processing, ensuring accuracy and compliance with local regulations. It should handle various payroll components, including salaries, deductions, bonuses, and taxes. Moreover, it should generate detailed Philippine payslips that meet legal requirements, providing transparency for employees.

Statistic: According to the Employers Confederation of the Philippines, businesses using automated payroll system flowcharts reported a 50% reduction in payroll errors and a 30% improvement in processing time.

 2. Employee Benefits Administration

Administering employee benefits, such as SSS, PhilHealth, and Pag-IBIG, can be challenging, especially when dealing with probationary employees. An effective HRIS should automate the enrollment and contribution processes for these benefits, ensuring compliance with local laws. This includes answering the common question, "Are probationary employees entitled to SSS?" Yes, they are, and the system should account for this from the first day of employment.

Statistic: A study by the Philippine Institute for Development Studies found that businesses using HRIS systems had a 40% higher compliance rate with mandatory benefits compared to those using manual processes.

 3. Time and Attendance Tracking

Accurate time and attendance tracking is crucial for complying with labor laws, such as the 15-minute break labor law in the Philippines, which mandates that employees are entitled to short breaks. An HRIS should automatically track working hours, breaks, and overtime, ensuring that all labor regulations are met. This feature not only helps in maintaining compliance but also in managing workforce productivity effectively.

 4. Leave Management

Managing employee leave can be a complex process, particularly with varying types of leave entitlements. An efficient HRIS should offer a comprehensive leave management module that allows employees to apply for leave online, managers to approve requests, and HR to track leave balances and accruals. This ensures transparency and fairness in leave administration.

Statistic: The Department of Labor and Employment (DOLE) reports that 60% of disputes related to leave entitlements were resolved more efficiently in companies using automated leave management systems.

 5. Compliance Management

Navigating the complex landscape of Philippine labor laws requires a system that can ensure compliance with various regulations, such as the DOLE resignation policy, business permit renewal requirements, and the accurate calculation of back pay vs. final pay. An HRIS should provide tools to manage compliance, including alerts for regulatory updates, automated reporting, and built-in compliance checks.

Statistic: The Philippine Chamber of Commerce and Industry found that companies using compliance management features in their HRIS had a 35% reduction in labor-related penalties and fines.

 6. Employee Self-Service Portals

An employee self-service (ESS) portal empowers employees by allowing them to access and manage their personal information, payroll details, leave balances, and benefits. This feature not only improves transparency but also reduces the administrative burden on HR departments.

Statistic: According to a survey by the Asian Institute of Management, 70% of employees reported higher job satisfaction when their company provided an ESS portal.

 7. Performance Management

An effective HRIS should include a performance management module that facilitates goal setting, performance reviews, and feedback. This feature helps align individual performance with organizational goals, fostering a culture of continuous improvement and accountability.

 8. Recruitment and Onboarding

Streamlining the recruitment and onboarding process is vital for attracting and retaining top talent. An HRIS should offer tools for posting job vacancies, managing applications, scheduling interviews, and onboarding new hires. This ensures a smooth transition for new employees and reduces the time and effort required to fill positions.

Statistic: The Philippine Society of Human Resource Management Professionals highlighted that businesses using automated recruitment systems reduced their time-to-hire by 25%.

 9. Analytics and Reporting

Data-driven decision-making is critical in today’s business environment. An HRIS should provide robust analytics and reporting capabilities, offering insights into workforce trends, employee performance, and HR metrics. This helps HR professionals make informed decisions and identify areas for improvement.

 10. Conflict Resolution Tools

Workplace conflicts, such as those arising from disagreements between coworkers, can negatively impact productivity and morale. An HRIS should include tools for managing and resolving conflicts, such as documenting incidents, tracking resolution progress, and maintaining a record of outcomes.

Statistic: A survey by the Philippine Business for Social Progress found that companies using conflict resolution tools in their HRIS experienced a 20% decrease in employee turnover due to workplace disputes.

Choosing the right HRIS with the features outlined above can significantly enhance HR operations and compliance for Philippine companies. By automating payroll and benefits administration, tracking time and attendance, managing leave, ensuring compliance, and providing self-service portals, an HRIS can streamline processes, reduce errors, and improve employee satisfaction.

As businesses in the Philippines continue to navigate the complexities of local labor laws and regulations, investing in a comprehensive HRIS is not just a technological upgrade but a strategic move towards better management and compliance. With the right HRIS in place, companies can focus on growth and innovation, confident that their HR processes are efficient, accurate, and compliant.

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