Are You Paying for Features You Don’t Use? Optimizing Your HRIS Investment
- Lexie Ward
- Mar 21
- 3 min read
Investing in a Human Resources Information System (HRIS) is a strategic move for any organization looking to streamline HR operations, improve efficiency, and enhance employee experience. However, many companies fall into the trap of paying for features they rarely, if ever, use. This can lead to wasted budget, inefficiencies, and frustration among HR teams and end users.
If you’ve ever wondered whether you’re getting full value from your HRIS, this blog will help you evaluate your current system and provide actionable steps to optimize your investment.
The Problem with Paying for Unused Features
1. Overpaying for Unnecessary Modules
Many HRIS vendors offer modular pricing, allowing organizations to add features like performance management, learning and development, or advanced analytics. While this flexibility is beneficial, companies often purchase modules they don’t need or use sparingly.
2. Low Adoption Rates
Even powerful features can be underutilized if they’re not user-friendly or well-integrated into daily workflows. Employees and HR staff may revert to manual processes or alternative tools.
3. Complexity Overload
An HRIS with too many unused features can overwhelm users, making the system harder to navigate and reducing overall efficiency.
How to Identify Unused Features
1. Conduct a System Audit
Review the features and modules currently active in your HRIS. Assess how often each feature is used and who uses it.
Steps:
Generate usage reports from your HRIS.
Interview HR staff and end users to understand their workflows.
Identify features that have minimal or no activity.
2. Analyze User Feedback
Gather feedback from employees and HR teams about their experience with the system. Common complaints may highlight underutilized or cumbersome features.
Questions to Ask:
Are there features you find confusing or unnecessary?
What tasks do you complete outside the HRIS that could be integrated?
Which features do you use most frequently, and why?
3. Compare Needs vs. Features
Align the system’s capabilities with your organization’s current and future needs. Features that don’t contribute to your HR goals may be worth reconsidering.
Strategies to Optimize Your HRIS Investment
1. Right-Size Your System
Focus on the features and modules that directly support your business objectives.
Tips:
Downgrade Unused Modules: Work with your vendor to remove unused features or switch to a more suitable pricing plan.
Scale Up Strategically: Add new features only when there’s a clear business case for them.
2. Enhance User Training
Often, features remain unused because users don’t fully understand their value or how to use them.
Suggestions:
Offer targeted training sessions for HR staff and employees.
Create user-friendly guides and videos for complex features.
Designate system champions who can assist others and drive adoption.
3. Customize, Don’t Over-Customize
Customizations can make your HRIS more relevant, but excessive modifications can lead to inefficiencies and compatibility issues.
Advice:
Focus on configurations rather than custom development.
Regularly review custom workflows to ensure they’re still necessary.
4. Regularly Reassess Vendor Contracts
Your needs and vendor offerings evolve over time, so it’s essential to periodically review your contract.
Steps:
Identify modules or features that can be removed or replaced.
Negotiate discounts for unused features.
Explore alternative vendors if your current system no longer aligns with your goals.
5. Integrate and Automate
Ensure your HRIS integrates seamlessly with other systems and automates as many processes as possible.
Examples:
Integrate payroll, benefits, and performance management systems.
Use automation to reduce manual data entry and streamline workflows.
Benefits of an Optimized HRIS
Cost Savings:
Eliminate wasted spending on unused features and modules.
Reallocate savings to other strategic HR initiatives.
Improved Efficiency:
Focused features mean less complexity and faster workflows.
Streamlined processes reduce errors and save time.
Better User Adoption:
A simpler, more relevant system is easier for employees to use.
Higher adoption rates maximize the value of your investment.
Scalability:
An optimized HRIS can grow with your organization without unnecessary baggage.
Conclusion
An HRIS should empower your HR team and employees, not burden them with unused features and unnecessary costs. By auditing your system, aligning features with business needs, and investing in user training, you can ensure your HRIS delivers maximum value. Optimizing your investment isn’t just about cutting costs—it’s about creating a system that supports your organization’s success, now and in the future.
Ready to get more from your HRIS? Contact us to speak with an expert.