Prior to introducing a HRIMS, the organisation will need to consider whether the HRIMS will be managed in-house (managed internally) or will be outsourced (managed externally).
Many organisations seek outsourcing arrangements for some of the HRIMS functions (e.g. payroll, recruitment, industrial relations) – seeking the centralised, consistency of administrative and reporting tasks that can come with an outsourcing arrangement. With this option the organisation can still maintain control of and focus on strategic HR functions (such as workforce planning, staff development, HR planning etc), while benefiting from the expertise and efficiency an outsourcing provider can bring.
There are advantages and disadvantages to both managing the HRIMS in-house and with using an outsourcing provider: and the organisation should consider their individual business context and unique culture prior to adopting either. Just because an option works well for one organisation, does not mean it will for another and vice versa.
The most important thing to remember with the management of the HRIMS is that the organisation will remain responsible for the overall use of the HRIMS – including the collection of data, maintenance of the HRIMS, legislated reporting, storage of data, disposal of data etc…
The organisation will be legally liable for any misuse or violation of information and data contained within the HRIMS, regardless of whether the individual/s are staff members or part of the outsourcing team, and in turn risks and considerations around access and usage should be well documented (e.g. policy and procedures) and reviewed regularly.
Regular monitoring on the use of the HRIMS should also be carried out via a HR audit, or other similar means – ensuring that the individuals accessing data or information are using it correctly, and also have the permissions to do so.