Top Tips Before Investing in a Local HRIS and Payroll System

Investing in a Human Resource Information System (HRIS) and payroll software is a major step for any organization. It can transform how you manage employee data, attendance, leave, and payroll. However, choosing the right local HRIS and payroll system requires careful consideration — not all systems are built the same, and the wrong choice can cost both time and money.

In this guide, we’ll share key tips to consider before deciding to invest in a local HRIS and payroll system to help ensure a smooth, cost-effective, and compliant transition for your business.

Understand Your Business Needs

Before exploring vendors or comparing prices, clearly define what your organization truly needs.

Ask yourself:

Do you need a full HRIS suite or just payroll automation?
How many employees will use the system?
Are you managing multiple branches or remote teams?
Do you require compliance with Philippine labor laws and BIR reporting?

By identifying your requirements early, you can focus on solutions that match your business scale and goals, avoiding unnecessary features that increase costs.

Check for Local Compliance and Tax Features

If your company operates in the Philippines, your HRIS and payroll system must comply with:

BIR reporting requirements (e.g., Form 2316, 1601-C, etc.)
SSS, PhilHealth, and Pag-IBIG contributions
DOLE regulations for timekeeping, overtime, and leave management

A locally developed HRIS often has built-in Philippine-specific compliance tools, which reduces manual work and ensures accurate payroll processing.

✅ Tip: Ask your provider if the system automatically updates when government contribution rates or tax laws change.

Prioritize Ease of Use and Employee Self-Service

A powerful HRIS is only effective if your team can use it easily. Look for:

User-friendly dashboards
Employee self-service portals for leave requests, payslips, and attendance logs
Mobile access for employees on the go

This improves HR efficiency and boosts employee satisfaction by allowing staff to manage their own information securely.

Evaluate Vendor Support and Reliability

Choosing the right HRIS provider is as important as choosing the software itself.

Consider:

How responsive is their technical support team?
Do they offer local customer service or remote-only assistance?
Is there a clear implementation and training plan?

Opt for a vendor that provides continuous support, system training, and on-site assistance (if needed). A reliable partner ensures your system runs smoothly long after deployment.

Assess Integration and Scalability

As your organization grows, your HR system should grow with you. Check if your HRIS can integrate with:

Accounting software
Timekeeping devices
ERP systems
Government portals (for BIR, SSS, etc.)

A scalable and integrated system ensures smoother data flow and prevents double encoding, saving time and reducing human error.

Review Data Security and Compliance

HRIS and payroll systems handle sensitive employee information — personal details, salaries, and tax data.

Ensure your chosen system:

Uses data encryption for secure storage
Follows Data Privacy Act of 2012 standards
Offers user access control and data backup features

Ask for proof of compliance or certifications from the vendor to guarantee that your employee data stays protected.

Compare Total Cost of Ownership (TCO)

Don’t just focus on the initial purchase or subscription fee. Consider:

Setup and training costs
Maintenance or support fees
Upgrade and customization costs
Cloud hosting or on-premise hardware requirements

A cheaper system might have higher long-term costs. Always calculate the total cost of ownership before making a final decision.

Request a Demo or Free Trial

Before signing a contract, request a system demo or free trial.
This allows you to:

Test the user experience firsthand
Identify any missing features
Evaluate response time and accuracy
Involve your HR and finance teams in decision-making

A hands-on demo ensures your chosen HRIS truly fits your organization’s workflow.

Think Long-Term

HRIS implementation is not just a one-time project — it’s a long-term business investment.
Choose a system that can:

Adapt to your company’s growth
Offer regular updates
Expand with new features like analytics, AI, or employee engagement tools

A future-ready HRIS helps your HR department stay efficient, data-driven, and competitive.

Conclusion

Investing in a local HRIS and payroll system can significantly enhance your HR operations — but only if you make informed decisions.
By analyzing your business needs, ensuring compliance, testing usability, and partnering with a reliable local provider, you’ll set your organization up for a smooth digital transformation in HR and payroll management.