The human resource information system (HRIS) is a cornerstone of efficient and effective HR management in today's rapidly evolving business landscape. At its core, an HRIS is a software solution designed to centralise, manage and streamline various HR tasks—from recruitment to retirement. But as organisations expand beyond their domestic boundaries, tapping into the global talent pool and accommodating a distributed workforce, a compelling need to think beyond a conventional HRIS arises. This is where an international HR system, often called a global HRIS or international HRIS, becomes crucial.
As per the Global HR Software Industry Report, the global HR software market size is valued at $21630.26 million in 2021 and is expected to expand at a CAGR of 10.26% during the forecast period, reaching $8861.55 million by 2027.
The hiring trend across borders is no longer just the domain of multinational corporations. Startups, SMEs and large enterprises are harnessing the benefits of a distributed workforce, leveraging skills and expertise from every corner of the globe. This shift isn't merely about geographical expansion but the inherent competitive advantage that a diverse and international team brings. Let us learn how an international HRIS or global HR system offers tailor-made solutions for forward-thinking organisations.
What is a Global HRIS?
A global HRIS can be best described as an integrated software solution specifically designed to handle the intricate and multifaceted human resource challenges that arise when operating across diverse geographical locations. While a standard HRIS predominantly caters to domestic or single-location operations, focusing on centralising and streamlining HR tasks within that scope, a global HRIS broadens this perspective to encompass the needs of international or multi-regional workforces.
A global HRIS addresses challenges beyond the purview of a standard HRIS. Some of these include:
- Cultural Sensitivity: Recognising and respecting the cultural nuances of each region, from holidays to workplace etiquette.
- Legal Compliance: Navigating the myriad of labour laws, tax regulations and employee rights that vary from one country to another.
- Multiple Currencies: Managing payroll, benefits and other financial HR tasks in multiple currencies, considering real-time exchange rates and local financial regulations.
- Language Barriers: Offering multilingual support ensures that all employees, irrespective of their native language, have access to vital HR resources and communications.
- Time Zone Management: Coordinating tasks, schedules and communications across several time zones without causing inefficiencies or miscommunications.
Therefore, the challenge in managing HR processes for an international workforce lies not just in the volume of employees but in the diversity of their needs and the complexities of their local contexts. A global HR system serves as a bridge, ensuring that HR operations, while global in scope, remain locally relevant, efficient and compliant.
This balance is vital for organisations aiming to maximise the potential of their international workforce while fostering a cohesive and inclusive work culture.
Key Features of a Global HRIS and Benefits
When opting for global HR systems, businesses should consider all its key features and understand how they will help your global operations.
1. Centralised Data Management: International HR system uses an integrated platform for data management. It allows organisations to house all their employee data from multiple regions in a singular, unified system.
- Simplifies data retrieval and updates, ensuring real-time accuracy
- Enhances data security by limiting the number of storage points vulnerable to breaches
- Provides a holistic view of the workforce, facilitating strategic HR decisions
2. Multilingual and Multi-Currency Support: Over 54% of people revealed in a survey that they face language barriers at the workplace. An international HR system is equipped to support multiple languages and currencies, ensuring that HR tasks and communications are locally relevant and comprehensible.
- Enhances user experience for employees, reducing language or currency-related barriers
- Simplifies payroll processing across different regions
- Ensures that company-wide communications and training materials are accessible to all
3. Global Compliance Management: This feature ensures that HR operations in each region adhere to the local labour laws, tax regulations and other relevant compliances.
- Reduces risks associated with non-compliance, including legal actions and financial penalties
- Keeps the organisation updated with changing regulations, ensuring continuous compliance
- Builds trust with employees by ensuring their rights and benefits are protected per local norms
4. Localised Benefit Administration: While maintaining a global framework, a global HRIS can manage and administer specific employee benefits to each region or country.
- Allows organisations to offer competitive and relevant benefits in each region
- Simplifies benefits management by centralising it, even if the offerings vary by location
- Ensures adherence to local standards and expectations, enhancing employee satisfaction
5. Time and Attendance Management Across Time Zones: The American Payroll Association estimates that over 75% of companies lose money from buddy punching. This feature manages and tracks the work hours, leaves and attendance of employees operating in different time zones.
- Eliminates time-related discrepancies, ensuring accurate payroll processing
- Enables HR and managers to coordinate tasks and schedules seamlessly across global teams
- Streamlines absence management, taking into account local holidays and work norms
6. Streamlined Workflow: Global HRIS offers tools that streamline HR processes, making them more efficient and consistent across the organisation, irrespective of the location.
- Reduces administrative workload, allowing HR teams to focus on strategic tasks
- Provides employees with a uniform experience, irrespective of their geographical location
- Enhances collaboration and communication between teams, promoting a cohesive work environment
Each of these features, while technically sophisticated, serves a simple yet crucial purpose: to ensure that the HR operations of a global organisation are as smooth, efficient and employee-friendly as those of a single-location entity.
Why Think of a Global HRIS?
The modern business landscape has experienced a seismic shift, with the digital revolution breaking down geographical barriers. Recent statistics underscore this transformation. According to an Upwork Study, 48 percent of hiring managers work with independent talent today. The focal shift on freelancers in the tech industry also points to a similar shift. Two-thirds of hiring managers plan to increase their use of freelancers in the tech category in the next 12 months.
A survey by BCG and The Network highlighted that 50% of employees were willing to work abroad, while 57% agreed to work remotely for an employer that didn’t have a physical presence in their home country.
In light of these trends, it's evident that businesses should actively incorporate international talent into their growth strategies. Here's where a global HRIS becomes not just beneficial but indispensable:
1. Ease of Use: A global HR system centralises various HR functions into a single platform, providing a unified interface regardless of the geographical location. It reduces the administrative burden by eliminating the need to juggle multiple systems or platforms for different regions.
2. Transparency: With international HRIS, there's clarity in HR processes, policies and data across all locations. Employees, regardless of location, can access the same information, fostering trust. It also ensures that compliance standards are consistently met across the board.
3. Scalability: As businesses grow and expand into new territories, a global HRIS can easily adapt, accommodating the increasing complexity and other challenges of globalisation.
International HR ensures a smooth onboarding of employees from new regions, ensuring they receive the same HR experience as existing employees. It can also help reduce costs associated with implementing new systems or platforms as the business expands.
Connect With Rapid EOR For All HRIS Features
A global HRIS isn't just another software solution; it's a strategic investment. Organisations aiming to harness the power of a global workforce and navigate the complexities that come with it can also help by adopting to work with experienced employers of record (EOR).
With more than two decades of deep-rooted experience in India's dynamic landscape, we've witnessed the evolution and hurdles of global expansion. The combined insights of our skilled team guarantee your business is always a stride ahead.
From effective payroll solutions tailored for a multifaceted workforce to customised contracts designed for unique business needs, we have it all under one platform. In a nation where adhering to regulatory standards is vital and intricate, our offerings ensure you remain in sync with all regulations.
However, what distinguishes Rapid is our holistic HR platform, encompassing every HRIS feature flawlessly. While our dedicated team meticulously handles your HR details, you also gain access to cutting-edge technology, offering instant data, analytics and more.
Schedule a demo with us to learn more.