A custom HRIS (Human Resource Information System) allows companies to design HR modules tailored to their unique workflows. This supports deeper automation and enables real-time data analytics for strategic decision-making.
Compared to standard HR software, custom systems offer greater scalability and integration capabilities, bridging the gap between HR needs and technological functionality.
What is a Custom HRIS?
A custom HRIS is a tailor-made system developed from scratch to match the specific HR processes and workflows of a business. This approach ensures the implementation of only the most relevant modules—free from the unnecessary features found in many off-the-shelf solutions.
Unlike standard HR system, a custom system is not limited by default configurations and can evolve in line with your company’s scale and needs. With open APIs and a modular architecture, custom HRIS also enables seamless integration with third-party payroll systems, ERP, and recruitment platforms.
Benefits & ROI of Implementing a Custom HRIS
HR systems offer significant advantages to HR departments and businesses in managing their workforce. So, what are the key benefits?
1. Process Efficiency and Real-Time Data Visibility
With automated attendance and payroll modules, companies can reduce payroll processing time by up to 60%, while real-time attendance reports accelerate auditing and compliance processes.
2. Calculating the ROI of Custom HRIS
ROI can be calculated with the formula:
(Total Savings – Cost) / Cost × 100%
Savings are driven by reduced manual tasks, minimized data errors, and improved HR time utilization. According to a LinkedIn study, HRIS solutions can yield up to 150% ROI within the first two years.
3. Performance Management
Custom HRIS makes it easier for HR teams to monitor employee performance and productivity in a structured way. Employees also benefit from features that simplify leave requests, attendance tracking, and overtime submissions
Key Features in a Custom HRIS
Here are some of the core features typically found in this custom solution:
- Attendance and Leave Management – Automated work hours calculation, leave policy settings, and fingerprint integration.
- Payroll Automation – Auto-calculation of salary, benefits, and tax deductions (e.g., PPh 21).
- Performance Management – Goal setting, performance reviews, and feedback loops.
- Learning and Development – E-learning modules and competency tracking.
- Analytics and Reporting – KPI dashboards, turnover analysis, and workforce forecasting.
- Custom Workflow and Dashboards – Tailored approval flows for leave, recruitment, and onboarding—displayed in interactive dashboards for HR managers.
Custom HRIS Development Process & Best Practices
The development of a custom HRIS involves multiple phases and best practices to ensure success:
- Requirement Gathering – Identify business needs, user expectations, and system integration requirements.
- Prototyping & Development – Create MVPs, conduct iterative demos, and implement a feedback loop.
- Testing, Deployment & Maintenance – Use automated testing and DevOps pipelines to ensure system reliability.
Best Practices include adopting Scrum methodology and implementing a CI/CD pipeline for faster updates and minimal downtime.
Cost Estimation & Key Cost Drivers for Custom HRIS
Implementing a custom HRIS involves significant investment. Here are the main cost factors:
1. Company Size
The larger the organization, the more users need access to the system—impacting license fees, system capacity, and cloud/server infrastructure. Enterprises with a large workforce need a robust HRIS that can handle high data volumes and multi-user access.
2. Feature and Module Complexity
The more advanced your HRIS needs—such as recruitment modules, automated attendance, integrated payroll, and analytics—the higher the cost. Complex modules require more configuration, integration, and specialized expertise during development.
3. Storage and System Infrastructure Needs
Whether you choose on-premise or cloud-based infrastructure significantly affects costs.
On-premise systems require large upfront investments in hardware and software, while cloud solutions offer lower initial costs via subscription-based models.
4. Customization Requirements
Organizations often need tailored solutions that match their unique HR practices. This may involve creating new modules, integrating with existing systems, or adjusting the interface to match the company’s branding. Higher levels of customization typically lead to increased implementation and long-term maintenance costs.
5. Additional Hidden Costs
Be aware of hidden or overlooked expenses, such as training sessions for internal users, regular software updates, infrastructure upgrades, and cybersecurity investments to protect employee data.
Build a Custom HRIS That Fully Supports Your HR Processes with GeekGarden!
Now you know the benefits, features, and cost considerations of custom HRIS implementation. A custom HRIS delivers an integrated solution tailored to your HR processes, offering high ROI and scalable growth. To get started, make sure your requirement gathering is thorough and choose an Agile methodology to streamline development.
But don’t worry—GeekGarden is here to help. With a team of professionals and a consultative approach, GeekGarden is ready to design and develop a custom HRIS that meets your exact business needs.
Contact our team today to discuss your requirements and experience the full benefits of a professional custom HRIS solution tailored just for you!
Author: Sari Dewi (Content Writer)
