HRIS Implementation Cost and Security
OL 667 Final Project Milestone Two: Implementation Cost & Security
Overview: Your organization is contemplating the purchase of a new human resource information system and has tasked you with formulating a proposal. Organizational details for you to consider for this assignment are as follows:
There are a total of 500 employees at the site; 450 non-exempt employees who clock in and out each day, and 50 exempt employees who do not use a time clock and are paid a standard weekly salary.
The organization has an electronic time capture and payroll system already in place that:
- is manually updated when employees are hired or terminate employment
- is a stand-alone application, not interacting with any other database system
- is maintained by two full-time payroll administrators, reporting to one payroll manager
Human resource records are primarily paper-based.
- Employee personnel files are maintained in file folders
- Personnel files are manually updated with demographic, performance, and disciplinary information
- Demographic data is available currently in an Excel database, which is manually updated
- Personnel files are maintained by four full-time human resource clerks, who are non-exempt and report to the full-time HR manager. The new HRIS system is expected to drive a self-service approach to records management, while also ensuring confidential and proprietary data is secure. In a 4–5 page paper with a minimum of three scholarly sources, compare the current human resources data-collection system with at least two new HR information systems that are being considered as it relates to costs/benefits and risk. This milestone is due in Module Six.
HRIS Implementation Cost and Security
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HRIS Implementation Cost and Security
The organization has decided to shift from paper-based record keeping to a new HRIS system that will facilitate a self-service approach to employees’ data and record management. However, as Pomffyova (2018) reveals, there are costs involved in the implementation of a new HRIS which are related to acquiring new technology as well as job-related changes. As such, to successfully make this shift, the organization will need a budget to cater to the required changes in the implementation of the new HRIS. In addition, having a self-service approach does not eliminate the need for privacy and confidentiality. This paper provides an assessment of the cost and security factors to consider when implementing a new HRIS.
Projected Implementation Costs of the New HRIS
As pointed out earlier, the implementation of a new HRIS is associated with additional costs to the organization. Below are the projected implementation costs for technology, facility upgrade, and headcount increases.
Technology
When referring to implementation costs for technology, the items to be considered include hardware, software, and software license fees. Employees will need access to computers for them to use the self-service approach in record management (Pomffyova, 2018). The average cost of a computer is between $632 to $733 (Statista, 2020). Currently, the organization has very few computers and as such, it needs to buy more computers for the implementation of the new HRIS. The goal is to ensure that every employee has a personal computer but the organization can start by having about 250 computers to serve the 500 employees. Thus, the projected cost for 250 computers is $158,000 on the lower side and $183,250 on the higher side. There is also the cost of HRIS software. This is subscription-based software that ensures adequate access to HR information through a self-service approach (Verhulst & DeCenzo, 2022). The cost of HRIS software is estimated to be $8, 750 per user for a five-year subscription (Software Path, 2021). There are also additional costs associated with training employees on how to use the system, especially now that every employee will need to incorporate the self-service approach. The organization needs to find a vendor who offers training as part of the whole HRIS software package.
Facility Upgrade
To accommodate this shift, the organization will need to have some upgrades in the facility. For instance, Pomffyova (2018) indicates that employees need access to a strong internet connection which will facilitate the use of the self-service feature in the new HRIS. Currently, the organization lacks a strong internet connection and will need to upgrade this to ensure faster input of employee data as well as efficiency in using the new HRIS. The cost of internet services varies from vendor to vendor and depends on the needs of the organization. According to High Speed Internet (2022), the cost of an internet connection ranges from $48 to $ 500 per month and varies depending on the internet provider, speed, and type of connection. The organization will need to consider these factors when settling for an internet provider. Some internet providers such as Xfinity offer an internet connection with a speed of 1,000 Mbps and 24/7 support while others such as Verizon offer fast fiber plans (High Speed Internet, 2022). However, the projected cost of the upgrade will be between $50- $500 per month.
Headcount Increases
According to Pomffyova (2018), some of the costs associated with the implementation of an HRIS are related to the human resources in terms of changes in headcount due to dismissal and recruitment of new human resources. In this case, the organization will incur costs in hiring a system integrator to help in the configuration of the new system and automation of HR processes. According to Glassdoor (n.d.), a system integrator’s salary is usually $80,066 per year on average. The system integrator will be crucial for the first...