What is a Human Resources Information System (HRIS)?

In the field of Human Resources (HR), the Human Resources Information System (HRIS) plays a crucial role. In this post, we will provide you a high-level grasp of what a human resource information system (HRIS) is, what it does, and why it’s important.

What is an HRIS?

Human Resources Information System, or HRIS for short, is a suite of programs used to track and manage an organization’s human resource information. In most cases, an HRIS will have the bare bones features necessary for full-fledged Human Resources Management (HRM). It’s a flexible system that may be used for a variety of purposes, from hiring to tracking performance to supporting training and education.

Because different systems may use different software, calling an HRIS by its software name might be confusing. The reality, however, is rather different. In its most basic form, an HRIS is HR software that includes everything.

Human resource information systems (HRIS) may run on a company’s internal network, or more typically in the modern environment, they can be hosted in the cloud, away from the company’s physical location.

Human resources information system (HRIS) and human resources management system (HRMS) are often used as synonyms for HRIS. Human capital management (HCM) systems include all of the aforementioned software applications. Human Resource Information System is used interchangeably throughout this text.

Benefits of an HRIS

HR departments of all sizes may benefit greatly from using an HRIS because of the many benefits it provides. The main advantage of HRIS is that it can store and manage employee data effectively. Among the many advantages of HRIS are:

1. Record-keeping:

Human resource information systems (HRIS) are comprehensive record-keeping systems that scrupulously document all employee-related changes. It serves as an authoritative repository for all employee information.

2. Compliance:

For legal reasons, we must collect and preserve certain personnel information. The first point of contact in the event of an accident, taxpayer identification numbers, and certification expiry dates all fall under this category, as do details essential to identify employees in the event of theft, fraud, or other wrongdoing. In order to safely store this vital information in line with legislation like GDPR, HRIS plays a critical role.

3. Efficiency:

Having all personnel information stored in one place under HRIS not only increases accuracy but also reduces administrative burden. If your company still keeps personnel information on paper, you know how time-consuming it can be to search for and retrieve certain records.

4. HR Strategy:

Human resource information systems allow businesses to track information crucial to the development of HR and business goals. HRIS excels in keeping track of a wide variety of data, all of which may be critical depending on the organization’s goals.

5. Self-Service HR:

Employees and supervisors may do HR-related duties on their own with the help of HRIS’s self-service HR functionality. While it’s true that well-implemented HRIS improves the employee experience, it’s also important to remember that not all HRIS systems provide user-friendly self-service capabilities.

Companies with 30 to 50 workers may benefit greatly from using HRIS. Standardized procedures for activities like granting employee leave become necessary at this point, making it impractical to manage basic personnel information in tools like Excel.

More complex HRIS systems are used by large companies to facilitate HR processes, while simpler HRIS solutions may suffice for SMEs.

Role of HRMS System

Since the phrase “human resource” was first used in 1893, the HR industry has seen remarkable change. No one at the time could have predicted the rise of HR divisions in businesses. To effectively handle the dynamics between workers and employers, however, a contemporary company needs a full-fledged human resources department.

But why is it so crucial for a company to have its own human resources department, and what precisely do they do? Can businesses survive without human resources departments? Let’s look into the relevance and varied functions of HR departments in contemporary firms.

Key Functions of the HR Department

  1. Recruitment: Employment placement is a key role for human resources departments. From advertising open positions to finding and interviewing potential candidates and obtaining necessary permissions, HR handles it all. This allows businesses to systematically recruit competent individuals.
  2. Employee Lifecycle Management: Human resources is in charge of everything from hiring to firing, from onboarding to offboarding, and from receiving notices of separation to distributing final settlements to employees. This guarantees continuity for workers as they go through their employment.
  3. Policy Formulation: Human resources creates a foundation for uniformity and equitable treatment of all workers by establishing and enforcing HR rules and procedures that are in line with the organizational structure.
  4. Payroll Management: HR manages the payroll system, including defining salary structures, processing salaries, handling arrears, generating payslips, and ensuring compliance with payroll regulations.
  5. Attendance and Time Management: Human resources determines how attendance will be recorded and calculated, and also oversees any related compensation rules. The company as a whole will benefit from improved time management as a result of this.
  6. Performance Management: The HR division has a significant impact on the development of a performance management system that assesses workers against predetermined criteria and real outcomes. This allows for constant feedback and development of staff.
  7. Employee Engagement: Human resources is responsible for enhancing employee morale and engagement to foster productive collaboration and long-term success. An involved workforce is more likely to be loyal and productive.

HRMS Functions

Human resource management system (HRMS) software was used by businesses in response to the rising need for HR departmentalization and standardization. An HR management system (HRMS) is a unified platform for managing all HR-related tasks. This system solves several problems that arise in human resources, making it possible to handle employee information in a safe and effective manner.

The Purpose of HRMS

HRMS has become indispensable in today’s digitized and automated business environment. Its main purpose is to empower HR departments to make strategic decisions by consolidating and automating HR processes. HRMS achieves this by:

  • Making data management a team effort, allowing employees to upload and verify their data.
  • Assisting organizations in complying with regulatory guidelines and standards.
  • Automating processes and reducing reliance on manual, time-consuming tasks.
  • Enhancing security and privacy of HR databases.
  • Customizing the workforce and attendance management system for more effective HR management.

Functions of HRMS – Automating HR Tasks

HRMS plays a pivotal role in automating numerous HR functions in a cost-effective and efficient manner. Some of the key functions include:

  1. Automating Tedious Tasks: HR and payroll deal with extensive employee data, and HRMS automates tasks related to data entry, processing, storage, and access. This improves data organization, saves time, and minimizes human errors.
  2. Overcoming Geographical Barriers: For organizations with multiple locations worldwide, HRMS enables online hiring and evaluation, ensuring standardization of policies and procedures across different regions.
  3. Streamlining Information Sharing: HRMS fosters smooth information sharing among HR, employers, and managers throughout the organization. Employee self-service features enable employees to access and customize their own information, leading to consistent and transparent communication.
  4. Supporting Informed Decision-Making: HRMS provides access to data and analytics, enabling managers to make informed decisions regarding hiring, firing, promotions, and employee development.
  5. Effective Performance Management: With HRMS, performance management becomes an ongoing, transparent process. Managers can schedule regular review sessions, set goals, provide feedback, and monitor employee progress, resulting in improved employee development.

In conclusion, the role of HRMS in modern organizations is pivotal. It enhances HR department efficiency, automates tasks, ensures data security, promotes information sharing, and supports informed decision-making. With HRMS, organizations can effectively navigate the complexities of human resources, ultimately contributing to their growth and success.

Importance of HRMS System

HRMS, or Human Resource Management System, is pivotal for modern organizations. It efficiently centralizes various HR functions, like employee data storage, payroll management, recruitment, benefits administration, attendance tracking, and performance management. This not only reduces administrative workload but also minimizes errors and promotes transparency. By streamlining data and automating processes, HRMS empowers companies to expedite tasks, enhance employee performance, and align HR activities with business objectives. The result is improved efficiency, data accuracy, and overall organizational effectiveness. In an age of increasing HR demands, HRMS is indispensable for business growth and expansion.

HRIS Vendors

There is a plethora of HRIS vendors to select from in today’s competitive HRIS software industry. Workday, Oracle, SAP, ADP, Ceridian, Kronos, and many more are just a few of the well-known Human Capital Management (HCM) solutions for companies with over a thousand workers. It is difficult to make a blanket statement about the best HRIS since each company has unique needs.

Several well-known HRIS vendors serving small and medium-sized organizations are:

  • Cornerstone OnDemand: Offers suites that encompass recruiting, learning, performance management, and an e-learning Learning Management System (LMS).
  • Workday: A global HRIS giant catering primarily to mid-sized and large businesses.
  • SAP SuccessFactors: A major player in the HCM market, especially for large enterprises, after SAP’s acquisition of SuccessFactors.
  • Oracle HCM Cloud: Provides modules for talent management, workforce rewards, workforce management, and work-life solutions.
  • Ultimate Software: Offers a unified system of records for HR, payroll, and talent management. Its systems include time and attendance, onboarding, performance management, compensation, succession management, and more.

HRIS Specialist & HRIS Analyst

In the domain of job roles, two key positions involve HRIS: the HRIS Specialist and HRIS Analyst.

  1. HRIS Specialist: In this position, you’ll be responsible for rolling out and maintaining the company’s HRIS. Human resources staff training is typically a part of this process. The HR department’s IT team is usually in charge of this.
  2. HRIS Analyst: Analysts in Human Resource Information Systems (HRIS) help keep the HRIS running well by investigating and fixing any problems that arise and liaising between HR and other departments like finance and payroll. They also help with things like creating both routine and ad hoc HRIS reports, increasing the system’s user interface, and introducing new regulations.

However, HRIS is now considered a vital skill for all HR professionals. Smaller organizations may not have dedicated HRIS personnel, but larger companies often do.

HRIS Certification

It is recommended that those interested in specializing in HRIS systems have experience in both information technology and HRM. Knowledge of information technology is helpful for understanding the nuances of HRIS systems, while familiarity with human resource management is crucial for appreciating the HR procedures that HRIS facilitates.

In addition, professionals interested in expanding their knowledge of human resource information systems may take advantage of HRIS certifications offered by a few reputable companies. You may also want to think about getting vendor-specific certifications depending on the HR software your company uses.

HRIS Implementation in 6 Steps

HRIS implementation is a multi-stage process. Here’s a high-level overview of the key stages:

  1. Search: Begin by identifying the needs of various stakeholders regarding HRIS. Create a list of potential HRIS providers based on these requirements and invite them to submit proposals. Ultimately, select the most suitable HRIS provider.
  2. Plan and Align: At this point, you should form your implementation group, your steering committee, and your implementation partner. Senior representatives from your selected HRIS vendors, the HR director, the internal project manager, and, possibly, a senior user from your company will make up the steering committee. During implementation, the team’s main emphasis is on the day-to-day activities that arise.
  3. Define and Design: Specify user groups, map out processes and workflows, and define the functional and technical requirements for your HRIS infrastructure, system, and security. You may also need to integrate your HRIS with other existing systems during this phase.
  4. Configure and Test: Create a core test team to test the new HRIS and provide feedback for potential improvements. Additionally, develop a user acceptance test to involve a group of users who can offer final feedback.
  5. Train and Communicate: Prepare a training program for technical staff, develop a communication plan, FAQs, and other support documents in preparation for the Go-live phase.
  6. Deploy and Sustain: Once all support processes are in place, officially launch your HRIS. Continuously collect feedback and update training materials to align with evolving systems. Consistent and accurate communication is essential throughout this phase.

Choosing and implementing the best HRIS for your organization’s needs is possible with these six stages as a guide. Consider enrolling in a thorough Digital HR Certificate program to learn more about HRIS deployment and developing a digital HR strategy.

In conclusion, HR information systems provide a single hub for key HR operations, making them an integral part of contemporary HR management. When used properly, an HRIS may help businesses simplify their human resources operations, enhance the reliability of their data, and back up HR policies that boost both organizational decision-making and worker satisfaction.

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