Human Resources Information System (HRIS) is a game-changer for organizations and professionals seeking to manage and automate vital HR functions such as recruitment, performance evaluation, learning and development, and more.
Leveraging a comprehensive employee database, HRIS streamlines critical processes like payroll, time tracking, and employee benefits administration. In this complete guide, Payscale highlights why HRIS reigns supreme in HR software.
What is HRIS?
So, what is HRIS, and what does HRIS stand for? I’s software designed to enhance the productivity and efficiency of crucial HR operations. It stands on two foundational pillars: organizational design and employee data management.
In terms of organizational design, HRIS strengthens the core structures of a company, promoting accountability and facilitating clear communication between managers and employees. On the other hand, HRIS systems aid in robust employee data management, storing personal and professional employee details in a standardized format.
Comprehensive HRIS apps and automations streamline the time-consuming workflows of HR teams, and the best HRIS solutions often significantly improve the quality of work for new hires, HR management, and, ultimately, the whole organization.
HRIS vs. HRMS vs. HCM
HRMS and Human Capital Management (HCM) seem synonymous with HRIS, but slight differences are crucial in distinguishing the three.
An HRMS database aids businesses in managing HR processes by automating talent and performance management, in addition to the tasks tackled by the right HRIS system. On the other hand, HCM is a broader HR concept encompassing all the HR practices that HRIS and HRMS facilitate, ranging from data management, and transactions, to strategic planning.
What does a human resource information system do?
An HRIS aids businesses in technologically bolstering HR processes, enhancing the efficiency of HR departments and organizations. The key areas HRIS systems focus on include recruitment, payroll, training, benefits administration, succession planning, performance management, employee self-service, reporting and analytics, and time and attendance.
Here’s an insight into six core processes supported by HRIS:
-
Benefits administration
-
Time and attendance
-
Employee self-services
-
Organizational structures
-
Management of employee absences
-
Applicant tracking
HRIS automates employee benefits, a vital part of compensation. Some HRIS systems even offer self-services, enabling employees to access, modify, and understand their benefits and enrollment options.
HRIS systems monitor employee absences, tardiness, holidays, schedules, premiums, and pay by collating data throughout the work year.
Some organizations and HR professionals prefer HRIS systems with employee self-services, empowering workers to manage their HR matters. This dramatically enhances the HR experience, provided the self-service platform is user-friendly.
Interestingly, HRIS helps companies optimize their workforce based on employees’ unique skills. An effective HRIS provides real-time analytics and identifies positional adjustments and structural gaps to ensure your company’s success.
Data about employee absences, including vacation, sick leave, and personal time off, are collected by HRIS systems. This data aids in determining holidays, work schedules, premiums, and pay calculations.
HRIS systems simplify recruitment by collating data from candidates’ applications and resumes, helping recruiters identify the most suitable candidates from a pool of applicants.
Why is a HRIS system necessary for your company?
HRIS is a valuable tool for organizations and managers aiming to streamline HR processes. Moreover, by centralizing HR data, HRIS systems ensure transparency, keeping all team members informed.
HR information systems main components
HRIS aims to provide comprehensive software solutions to HR and IT teams. Here are six key components that a well-rounded HRIS platform offers:
-
Database management
-
Scheduling and labor optimization
-
Payroll and workforce management
-
Talent acquisition and retention
-
Employee interface
-
Benefits management
At its core, HRIS serves as a centralized repository for employee data, streamlining data entry, management, and sharing. One benefit of an HRIS is that it allows HR professionals to harness data for strategic decision-making and enables employees to access their information, fostering a sense of autonomy and trust, thereby mitigating burnout risk.
For successful labor optimization, effective time management is pivotal. A comprehensive understanding of employees’ schedules and ongoing projects is essential. HRIS, integrated with clock-in-and-out software, offers real-time visibility into time tracking and scheduling across diverse departments.
Payroll and workforce management were traditionally labor-intensive functions for HR departments. However, HRIS automates these tasks, incorporating updates on salary and tax codes. Furthermore, HRIS offers valuable insights into compensation analytics, helping streamline employee compensation.
Given the competitive global market, curbing employee turnover is a significant concern for many companies. Therefore, practical talent management tools are paramount. HRIS simplifies the hiring and onboarding process, enabling companies to track qualified candidates and ensure consistent training. To learn more, check out Payscale’s 2023 Retention Report.
The future of HR is firmly rooted in self-service, and HRIS plays a critical role in this transition. By aggregating HR requests on a single platform, HRIS empowers employees to manage their HR matters independently. This includes accessing role information, time and expense tracking, and updating personal details.
Modern employees expect many benefits beyond just salary and paid time off. These benefits range from small perks like snacks to substantial offerings like private healthcare. HRIS allows organizations to monitor employee preferences and lets employees view their benefits, boosting transparency, accessibility, and job satisfaction.
What are examples of HRIS?
Understanding the business needs and objectives that your HRIS meets is vital. Start by having your HR and IT teams align on these goals. Here are two common examples of HRIS systems:
-
Operational HRIS systems
-
Strategic HRIS systems
An operational HRIS system collects core HR data, including employee demographics, performance metrics, and job details. It assists businesses in streamlining HR tasks and making informed HR decisions.
A strategic HRIS system focuses on labor resources, workforce planning, and HR strategy by encompassing workforce data and aligning it with organizational goals. It assists companies in making decisions to expand or transform, ultimately driving strategic growth.
7 benefits of using HRIS systems
1. Supports data-driven decision making
HRIS systems turn data into actionable intelligence, thereby enabling more informed decisions. They present an integrated view of employee data, aiding HR and management in identifying trends, forecasting needs, and shaping strategies that align with organizational goals.
2. Enhances user experience
An intuitive and user-friendly HRIS improves the overall experience for HR personnel, management, and employees. Simplified processes, easy access to information, and interactive self-service options empower users, promoting efficiency and satisfaction.
3. Minimize labor time
HRIS systems save valuable time by automating repetitive HR tasks such as record-keeping, scheduling, and payroll processing. In doing so, HRIS systems allow HR teams to focus on strategic aspects of their roles, like talent development and employee engagement.
4. Supports business growth
HRIS systems offer scalability, which is vital for growing businesses. The HRIS often adapts to handle more data and complex processes as the company expands. It supports the seamless integration of new employees and processes into the HR system.
5. Supports compliance
Given the ever-changing labor laws and regulations, compliance is challenging. HRIS systems come with in-built compliance features, aiding businesses in maintaining up-to-date records, generating reports, and staying abreast of legal changes.
6. Easily scalable
HRIS systems offer scalability, enabling businesses to expand or contract their HR functions based on changing needs. They provide the flexibility needed to manage an increasing volume of HR data and tasks effectively.
7. Easy and fast access to innovation
In the rapidly evolving world of HR technology, HRIS systems provide a gateway to innovation. They often include cutting-edge features such as AI-powered analytics, mobile access, and social media integration. These innovative elements help organizations stay ahead of the curve, driving efficiency and strategic advantage.
Advantages of integrating HRIS to payroll and workforce management
Harmonizing HRIS with payroll and workforce management in your company offers myriad benefits for long-term efficiency and effectiveness:
- Eliminate duplicate files, long paperwork, and various passwords
- Automate administrative tasks
- Reduced margin for error
- Time and cost efficiency
- Streamline attendance and time-off information
- Update salary changes and bonuses automatically
Common roadblocks of human resources systems
Here are three predominant hurdles faced during the adoption of HRIS:
- Data privacy and security
- Regulations and compliance
- Business disruption
For newcomers to HRIS, data privacy and security of employee information are often a concern given the vast confidential data handled. Striking a balance between equipping users with requisite data without exposing sensitive information is tricky.
Compliance with regulatory statutes while defining data access rules in an HRIS is crucial, especially for organizations with a global presence. A functional HRIS enables employees to perform transactions without breaching confidentiality or breaking laws.
The dynamic nature of HRIS often poses challenges. Given the many options available, keeping pace with constant upgrades and selecting the best-suited HRIS is daunting. Organizations must align their business goals with HRIS choices to avoid confusion.
Key things you should consider for choosing an HRIS software
When choosing HRIS software fitting your organizational needs, consider these crucial aspects:
- Internal assessment
- Internal auditing for identifying specific needs of the company
- Create a checklist of all the needs and requirements
Conducting an inward review helps identify bottlenecks in your organization’s HR strategy. Direct feedback or surveys reveals areas of dissatisfaction, like the onboarding process. Though it touches upon sensitive areas like employee performance, it’s a necessary step. This assessment includes determining who will helm the HRIS selection and whether to use a consultant.
Deciding the priority features and functionalities of your HRIS requires inputs from employees, managers, and stakeholders. Employee feedback is incredibly insightful, as they best understand which HR processes need improvement. For instance, remote workers sometimes prefer online time-keeping over physical time clocks.
Post-assessment and audit, compile a list of specific needs and requirements for your HRIS. Be prepared for this to evolve as you continue your research. This checklist is invaluable when comparing and evaluating different HRIS products concerning your company’s needs.
Steps to implement an HRIS system
Once you’ve selected your HRIS software, follow these five steps to ensure successful implementation:
- Choose the team
- Build a project roadmap
- Try out the platform
- Brief and provide training to the users
- Roll out the system
HRIS system trends and predictions for the future
The HRIS landscape is in constant flux, continually adapting to emerging workforce trends such as remote work, global connectivity, and technological advancements like AI, SaaS, and machine learning.
Take Payscale’s MarketPay HRIS system, for example. It harnesses advanced technologies like dynamic visualizations and a survey participation tool to equip businesses with dependable market data and actionable insights, aiding in structuring pay and benefits decisions.
HRIS’s ability to adapt to our evolving workforce and assist businesses to thrive in a highly competitive global market suggests a likely increase in HRIS reliance in the future.
FAQs around HRIS
- Is it hard to learn HRIS?
- Do all companies use HRIS?
The difficulty level of learning HRIS hinges on several factors, including the complexity of the HRIS system and the user’s existing HR experience and tech-savviness. However, HRIS platforms aim to be user-friendly and intuitive, making the learning curve manageable. Given sufficient resources, support, and adaptability, anyone has the ability to navigate HRIS systems.
Not all companies utilize HRIS. Adopting HRIS is company-specific and depends on workforce size, budget, and HR needs.
HRIS systems are particularly beneficial for larger companies dealing with important HR data and tasks, while smaller organizations are less likely to use HRIS. To decide if HRIS is a good fit for your company, refer to Payscale’s research on the impact of HR data.
