What is HRIS?
A HRIS, which is also known as a human resource information system or human resource management system (HRMS), is basically an intersection of human resources and information technology through HR software. This allows HR activities and processes to occur electronically.
To put it another way, a HRIS may be viewed as a way, through software, for businesses big and small to take care of a number of activities, including those related to human resources, accounting, management, and payroll. A HRIS allows a company to plan its HR costs more effectively, as well as to manage them and control them without needing to allocate too many resources toward them.
In most situations, a HRIS will also lead to increases in efficiency when it comes to making decisions in HR. The decisions made should also increase in quality—and as a result, the productivity of both employees and managers should increase and become more effective.
What are the Benefits of a HRIS?
The human resources department within any organization is considered to be highly critical for the entire organization. Its many functions serve as a supportive background for the company by providing everything from skilled and talented labor to management training services, employee enrichment opportunities and more. Since labor is the single largest expense for most organizations, human resources helps companies derive the greatest value from this important asset.
In order to function optimally, however, human resources departments must have the right tools and resources in place. A HRIS can be utilized within the department to help human resources employees and managers improve their productivity and the results of their efforts.
There are many benefits that can be enjoyed after implementing a HRIS into an organization, such as:
- Expedition of recurring tasks through automation
- Improved ability to reach large candidate pools regarding new position openings
- Ability to quickly apply higher selection standards to a number of applications
- Speedy onboarding made possible by mobile accessibility
- Reduction of paper and related materials and storage – often yields cost savings
- Ease in distributing up-to-date materials concerning company policies and procedures
- Potential for greater employee engagement through self-service options
- Streamlining of open enrollment for benefits
- Empowerment of employees to change benefits information directly as changes occur
- Improved collaboration throughout organization, even when there are multiple company locations
- Improvements in training capabilities through integration with LMS and development tracking features
- Scheduling optimization with an emphasis on compliance and immediate distribution to employees
- Reduction of errors within payroll systems and employee information databases
- Improved time and attendance tracking abilities and accuracy
- Decrease in compliance woes aided by alerts and automatic reporting options
- Ability to make more informed decisions in real time by using analytics and integration of organizational data
Improving HR Productivity
While the HRIS features benefit the organization in many ways, one of the most important of all HRIS benefits relates to the ability of the software program to improve the productivity of human resources employees. These HR systems are highly detailed, and they are designed to enhance and speed up the efforts of HR employees in a number of ways. For example, they can assist with recruitment by simplifying the process of collecting resumes, reviewing candidate information and more.
HRIS systems can also be used to improve productivity related to financial management through payroll processing tasks and benefits administration. These and other related tasks may require numerous hours of manpower each week. However, the time and effort required to complete them can be drastically reduced when some of the tasks are automated through a HRIS system. Tasks that may have required many hours of labor may possibly reach completion very quickly and easily – or sometimes even done automatically – with the software program.
Reducing Errors and Maintaining Compliance
Many HR tasks are highly regulated, and because of this, even a minor error on the part of a human resources employee could result in considerable legal issues and even financial loss for the company. For example, when resumes are not reviewed in a fair and just manner during the hiring process, a lawsuit may ensue. A HRIS can provide guidance to avoid these types of issues before they escalate.
When considering HRIS benefits for your organization, the ability to reduce issues and other related errors associated with human oversight or other factors can be considerable. Furthermore, additional HRIS benefits relate to compliance issues. Some software programs are designed to review compliance with specific rules and regulations—this makes it easier to ensure that your company is in compliance with these laws and regulations. Ultimately, this can improve company reputation and help to avoid penalties.
Performing analyses and reviewing metrics related to various aspects of the organization can assist with better decision making and also help with spotting patterns. For example, the human resources department is responsible for analyzing hiring costs and calculating the turnover rate in different departments. The results of these calculations may be used to make important business decisions and to develop strategies for moving the organization along a successful path.
HRIS analytical tools give HR employees the ability to perform many pertinent calculations with speed. Employees can collect the data needed within a short period of time and then analyze all of the data in a concise and effective manner. Some software programs are designed to create professional reports on metrics and analysis that can help HR professionals to spot issues at a glance.
Companies can immediately enjoy many HRIS benefits once the human resources information system has been implemented. There are several different types of HRIS systems available for purchase, and each may offer different features and functions. Companies should carefully review the different systems, vendors, and features available in order to find the right program for their needs and budget.
Solutions Offered by HRIS Systems
There are a number of solutions offered to a company that adopts a HRIS. Some of these include solutions in training, payroll, HR, compliance, and recruiting. The majority of quality HRIS systems include flexible designs that feature databases that are integrated with a wide range of features available. Ideally, they will also include the ability to create reports and analyze information quickly and accurately, in order to make the workforce easier to manage.
Through the efficiency advantages conferred by HRIS systems, a HR administrator can obtain many hours of his or her day back instead of spending these hours dealing with non-strategic, mundane tasks required to run the administrative side of HR.
Similarly, a HRIS allows employees to exchange information with greater ease and without the need for paper through the provision of a single location for announcements, external web links, and company policies. This location is designed to be centralized and accessed easily from anywhere within the company, which also serves to reduce redundancy within the organization.
For example, when employees wish to complete frequently recurring activities such as requests for time off or electronic pay stubs and changes in W-4 forms—such procedures can be taken care of in an automated fashion without the need for human supervision or intervention. As a result, less paperwork occurs and approvals, when deigned, may be appropriated more efficiently and in less time.
HR and Payroll Factors
When a company invests in an affordable HRIS, it suddenly becomes capable of handling its workforce by looking at two of the primary components: that of payroll and that of HR. Beyond these software solutions, companies also invest in HRIS modules that help them put the full productivity of their workforce to use, including the varied experiences, talents, and skills of all staff within the enterprise.
HRIS Software Popular Modules
A range of popular modules is available, including those for recruiting, such as resume and applicant management, attendance, email alerts, employee self-service, organizational charts, the administration of benefits, succession planning, rapid report production, and tracking of employee training.
In conclusion, it is important to choose the right HRIS. A company that takes the time to invest in a HRIS that fits their goals, objectives, mission, and values, is a company that is investing in its future and in its success. It will be necessary to customize any HRIS to the unique needs of a company so the system will remain flexible and relevant throughout the life of the company or enterprise. For more informative HRIS resources, be sure to check out our vast HRIS Database.
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Authored by: Dave Rietsema