What Exactly Is the HRIS System and How Can It Help You?

When someone mentions HRIS, the first thing that often comes to mind is the “Human Resources Information System.” But what exactly is an HRIS? It is a useful tool that HR teams use to help manage their workforce. However, not many employees fully understand it.

This article breaks down what the HRIS system is, its uses, the benefits it can provide, and how companies use it. After reading, you will learn all about how this technology supports HR teams and improves the employee experience. Whether you’re an employee or an employer, this overview will help you understand this key software that is becoming more popular in workplaces today.

What Is an HRIS System?

An HRIS, or Human Resource Information System, is a software platform that helps companies manage their human resources data. It allows companies to organize and easily access data about their employees.

• Employee Data

HRIS stores employee data, such as their names, contact details, job titles, salaries, and employment histories. It helps HR teams keep accurate records and stay on top of key dates like performance reviews, pay increases, and benefits renewals.

• Streamlined Processes

With HRIS, companies can automate many time-consuming HR tasks. For instance, the system can automatically track employee time and attendance. It can also calculate payroll and generate reports required for compliance. This frees up HR teams to focus on more strategic priorities.

• Data-Driven Insights

A good HRIS provides analytics and reporting tools that give insights into the workforce. Companies can spot trends, identify areas for improvement, and make data-driven decisions. This software uses metrics like employee turnover, retention, and diversity.

• Execution Considerations

Employing an HRIS system requires a significant investment of both time and money. Companies must gauge their needs, budget, and technical skills to find a solution that fits. While HRIS platforms aim to simplify HR management, shifting to a new system can be challenging. With proper planning and training, companies can maximize the benefits of HRIS.

The Benefits of Employing an HRIS

An HRIS can benefit any company by simplifying many of their HR tasks and freeing up valuable resources.

• Increased Efficiency

HRIS automates routine tasks like payroll processing, attendance tracking, and benefits processing. This allows HR to focus on more strategic plans. Employees can also access data and complete tasks through the self-service portal, reducing the volume of questions for HR.

• Better Reporting and Insights

All employee data is in one place, making it easy to generate reports and analyze trends. HR and executives can gain valuable insights into areas like turnover, compensation, training needs, and more. This gives data-driven insights, which allow for better decision-making.

• Reduced Costs

Automating HR processes drastically reduces costs associated with manual work like data entry, filing, and paperwork. An HRIS also minimizes compliance risks and the potential for errors by standardizing procedures. With a modern HRIS, there are real benefits for both HR teams and the company. The increase in efficiency, data-driven insights, and cost savings can help propel any company into the future.

Core Processes Supported by HRIS

An HRIS system supports a few core HR processes that are crucial for any company.

• Recruitment and Selection

HRIS aids the recruitment and selection process. It allows HR to post job openings on the company website and external job sites. It also provides a portal for candidates to submit their applications online. Companies can use the system to evaluate candidates through assessments and interviews.

• Payroll Management

HRIS makes payroll management much more efficient by automating tasks like calculating wages and withholdings. It ensures that employees receive their pay accurately and on time through direct deposit. The system also generates year-end tax forms like W-2s, and tax reports required for audits.

• Training and Development

HRIS tracks employee training and development. It allows HR to schedule and enroll employees in key training programs. The system also maintains training records and certifications in a main database for easy reporting. This helps to spot skills gaps and ensure compliance with regulations.

• Performance Management

HRIS helps in the performance management process. Companies can use this system for tasks ranging from setting goals to conducting performance reviews. It provides a platform for employees and managers to set key performance indicators (KPIs), track progress, and assess performance. This makes the performance review process transparent, and data driven.

• Compliance

HRIS has built-in controls and alerts to help ensure compliance with employment laws and regulations. It can track key dates and deadlines for HR actions. The system also provides audit trails and generates reports that document compliance for government agencies. This minimizes the risk of fines because of non-compliance.

In summary, an HRIS provides support for vital HR functions like recruitment, payroll, training, performance management, and compliance. For any company, these core processes are key to managing human resources efficiently and effectively. An HRIS is crucial for optimizing and simplifying these critical functions.

HRIS Main Components

The HRIS system has three main components:

• Software

The software is the technology platform that powers the HRIS system. It stores and manages employee data, automates HR processes, and provides reporting and analytics. Companies can purchase and install the software on their servers. They can also access it via the cloud as Software-as-a-Service (SaaS).

• Hardware

The hardware is the physical technology infrastructure that the HRIS software operates on. This includes servers, computers, mobile devices, and networking equipment. For cloud-based systems, the vendor provides and maintains the hardware. For on-premises systems, the company purchases and maintains the key hardware components.

• People

The people involved in an HRIS execution include HR teams, IT, implementation consultants, and end users like employees and managers. HR and IT teams work together to select, employ, and maintain the system. Consultants help guide the process. Employees and managers then use the system for tasks like updating personal data, reviewing benefits, managing leave requests, and more.

An effective HRIS system seamlessly integrates software, hardware, and people to help simplify HR operations, reduce paperwork, and enable data-driven decision-making. With the right combination of these elements, companies can maximize the benefits of HR technology.

Conclusion

HRIS systems are very useful tools that can make life a whole lot easier for HR teams and employees alike. With the ability to simplify everything from benefits management to performance reviews, it is no wonder more companies are jumping on the HRIS bandwagon. Sure, executing one takes time and money, but the long-term payoff is well worth the initial investment.

At the end of the day, HRIS helps build a more productive, satisfied workforce by taking care of the administrative grunt work and freeing up HR to focus on the human element. And that is something every company could use a little more of!