Human Resource Information Systems in Southwest Wisconsin: An Analysis of Applications and Satisfaction

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1 Pioneer Undergraduate Research Fellowship Final Report Human Resource Information Systems in Southwest Wisconsin: An Analysis of Applications and Satisfaction Student Researcher: Lorelei A. Rindy Major (1): Business Administration HR Emphasis Major (2): Comprehensive Business and Economics Research Advisor: Dr. Machelle Schroeder

2 Human Resource Information Systems in Southwest Wisconsin: An Analysis of Applications and Satisfaction Introduction: Human Resource Information Systems (HRIS) have become an asset to today s businesses and human resource professionals. The main intent of a HRIS is to keep an accurate, complete and updated database for tasks such as applicant tracking, performance appraisals, reporting, employment history and benefits. The purpose of the research project was to determine how widely these systems are used in Southwest Wisconsin businesses, what applications they utilize and if the businesses are satisfied with the systems they use. Research Methodology: The data was collected by sending a one-page questionnaire to 300 members of the Society for Human Resource Management (SHRM). The members all belonged to the Madison chapter and were a representative sample of Southwest Wisconsin businesses. They were selected at random. Included with the one-page questionnaire was a cover letter and self-addressed stamped envelope for easy return of the questionnaire. Of the 300 questionnaires mailed 64 percent were returned completed, 33 percent were not returned and three percent came back undeliverable. Research Questions: The questionnaire consisted of the following questions. 1.) What is the estimated size of your company? 2.) In what industry does your company do business? 3.) Does your company utilize an HRIS system? 4.) If No, When do you anticipate your company implementing an HRIS system? 5.) If Yes, What system does your company use? 6.) What applications do you use the HRIS system for? 7.) How would you rate your overall satisfaction of the HRIS system? 8.) If not satisfied with the HRIS system, Please identify any major contributing factors.

3 Results: What is the estimated size of your company? The majority of companies were smaller companies with less than 500 employees. The breakdown is as follows: 46% had less than 200 employees 24% had between 200 and 500 employees 8% had between 500 and 1000 employees 5% had between 1000 and 1500 employees 2% had between 1500 and 2000 employees 13% had more than 2000 employees In what industry does your company do business? The majority of the companies surveyed were in the manufacturing or service industries. Service related industries included health care, insurance, consulting and financial services. There were also a fair number of companies involved in retail and information technology. Does your company utilize an HRIS system? Of the companies that responded to the questionnaire 66.6 percent do utilize a human resource information system and 34.6 percent do not. Percent Yes No Response

4 If No, When do you anticipate your company implementing a human resource information system? Of the companies that do not utilize a human resource information system eight percent estimated implementation in less than one year, 19 percent estimated implementation in one to three years, one percent estimated implementation within three to five years and a resounding 72 percent answered that they didn t know when their company anticipated HRIS implementation. If Yes, What system does your company use? The companies indicated the use of the following HRIS systems: 17% PeopleSoft 15% ADP (HR Profile and Perspective) 11% ABRA 11% Company Developed 6% Ceridian 5% SAP 35% Other What applications do you use the HRIS system for? The most common applications used pertained to employment history, benefits, payroll and reporting. Less than half of the companies that have a HRIS indicated that they use it for training and education, flexible spending accounts, attendance tracking and grievances EE Hist Benefits Pay Report Train/Edu Flex Att EE Hist Pay Train/Edu Att Grievances

5 How would you rate your overall satisfaction of the HRIS? Of the companies that use a human resource information system none indicated that they were extremely satisfied, but two-thirds did indicate that they were satisfied with their system. The neutral category was indicated by 23 percent, dissatisfied had 17 percent and extremely dissatisfied had 11 percent. If not satisfied with the system, Please identify any major contributing factors. Of the 21 companies that we not satisfied or extremely dissatisfied with the HRIS they used they cited difficult to use, lack of applications, cost, too many applications and an outdated system as the main reasons they were not happy with their system Difficult to use Lacks applications Cost 10 Too many applications Outdated Conclusions: The response data indicates around two-thirds of businesses in Southwest Wisconsin use a human resource information system to aid in the human resource functions of the company. However, of those that do not use a HRIS, 75 percent had no idea when one would be implemented. It s likely this can be attributed to the large number of smaller employers in the Southwest Wisconsin area. Of the companies that use a human resource information system two-thirds are satisfied with the performance of the HRIS. Not surprisingly, none of the companies surveyed were extremely satisfied. Most of the companies who expressed dissatisfaction also indicated future implementation of a new

6 system to better suit their business needs. The most popular applications included employment history, benefits, payroll and reporting. The least popular applications include grievances, attendance and flexible spending accounts. Some of the smaller companies indicated use of Microsoft Excel as a suitable alternative to a HRIS due to the small number of people they employed. Of those dissatisfied with their human resource information system most cited lack of applications and difficult to use, but very few indicated cost as a major contributing factor of dissatisfaction.