A retail operation has stores in five locations and a corporate office in which one HR director handles all HR functions. The organization has about 150 employees; 20% are full-time and the remaining 80% are part-time. The organization has approximately 40% turnover annually at their retail stores. The owners are planning to increase the number of stores to ten within the next five years.

Currently, the only automated HR function is payroll. The rest are managed through paper or spreadsheet. Because of a previous incident within the organization, management is very concerned about the limits of data security with electronic systems.

The HR director is concerned about being able to maintain accurate records while adding the number of employees but also wants to reduce the amount of time spent on administrative functions and focus more on talent management, retention, and employee engagement. There is no performance management program or compensation structure in place. Currently, the HR director spends 30% of available time updating the payroll system, spreadsheets, and other related information to add and delete employees.

At a recent SHRM chapter meeting, a technology vendor conducted a demo of an HRIS. The human resource director believes a product like this would reduce the time spent on administrative functions and increase time spent on strategic activities. choose the appropriate answer and explain the reason why that option is correct.

1. What would be the best way to handle management’s concern about data security in an HRIS?

a. Collaborate with internal IT professionals trusted by management to develop a security strategy.

b. Request a contract from the HRIS vendor that assures that the system is secure.

c. Arrange for a meeting between management and the HRIS vendor’s security professionals to reassure management that the data is protected.

d. Convince management to implement the system so they can have firsthand evidence of the security of the system.