A human resources information system (HRIS) is an important piece of software for HR departments. In fact, it’s the most used software within HR departments for its efficiency and functionality, and one of the best types of HR software a business can implement.
Here’s a guide to what an HRIS is, its features, and how to implement an HRIS into your business.
An HRIS stores and analyzes employee data for end-to-end human resources management (HRM). This data is used in daily HR tasks, including employee recruitment, payroll processing, accounting and performance management. Also known as an HRM system, an HRIS allows HR departments to manage and control the costs and time spent on these administrative tasks.
An HRIS is usually cloud-based, meaning the software is managed outside of the organization, creating easy access for employees. These systems run on employee data generated by HR department personnel. The HRIS organizes this information into in-depth HR reports. Other data, such as time-off requests and benefits, are also automated through an HRIS, which makes managing these tasks easier on HR personnel.
“The most impactful tools are those which save time, drive efficiency, and maximize productivity for the employee and the organization overall,” said Stephen Kohler, CEO and founder of Audira Labs. “In today’s context, this means cloud-based, self-service platforms that allow the employee to access, monitor, and update data quickly and easily, including app-based access.”
Here are some common benefits of using an HRIS for your business:
HRIS systems and software packages can handle or assist with various HR tasks. When you choose an HRIS, be sure it can handle your most pressing HR needs.
An applicant tracking system (ATS) is recruitment software that takes care of an HR department’s recruiting needs. It keeps track of potential candidates and measures their resumes against job descriptions and postings on job boards. It also helps recruiters smoothly move candidates through the hiring process.
HRIS systems assist with and automate the process of running payroll. As start dates and any other employee changes are updated within the system, it creates payment orders. This module takes data from other HRIS system functions, including time, attendance and employee status, to determine payment.
With an efficient user interface, some HRIS systems help employees self-service their employee benefits. They can schedule time off for things like vacation or maternity leave, or sign up for certain benefits once they’re eligible.
Managers can keep track of multiple employees’ progress through performance management software. This HRIS module provides templates for employee performance check-ins and guides to creating a performance rating system for all employees.
Certain HRIS software packages can integrate with time and attendance modules that keep track of employee time data. For employees who do shift work, this system allows management to keep track of hours worked versus the amount of time each employee is scheduled to work. If an employee is late or misses work, the system can also send an alert to the manager.
It’s important for leaders to focus on employee training and learning capabilities to further the company and advocate for employees’ self-development. Training modules within an HRIS system track the employee’s skills, certifications and any other available training.
Some HRIS capabilities include a reporting and analytics module, which provides in-depth analysis on data such as employee turnover rate, performance ratings, and employee absenteeism or tardiness. Managers can send these reports to other departments, as well as mitigate and respond to employee satisfaction concerns.
More and more companies are allowing employees to take charge of their benefits and time management. From requesting time off to managing their data and performance, employees can take advantage of a user-friendly HRIS system.
HRIS software systems are often touted as transactional systems. The transactions in question include tasks such as hiring a new employee or changing a worker’s employment status. The greater the number of transactions, the more data there is to analyze. These subsequent analyses allow HR personnel to notice patterns and form solutions from the data presented.
Pertinent reports for HR personnel can include the following:
Not all HRIS systems can create reports. Data may be on external software that can’t sync properly. For example, time and attendance data may be on a different system from performance management data, making it difficult to accurately report a possible correlation.
Here are the most important steps to take when implementing an HRIS:
Once you’ve set up your HRIS, take time to look over its available features and migrate your company’s data into the system. Be sure you’re adapting to the new processes the HRIS system provides to better relay these changes to your employees.
Ensure your employees and leadership are familiar with the new system and provide training on using the platform for their particular duties. This step is easiest if you’ve done your research and selected a user-friendly HRIS system. Employees and management will both benefit from analytics and reports if employees use these resources properly.
The HRIS vendor will be a valuable resource while you’re finding the best ways to cater to your organization’s needs. A good vendor will have customer service options for troubleshooting as well as training opportunities so you can learn all the service’s features.
Many modern HRIS providers constantly update their software to improve their products, creating more value for your business. To take advantage of new features, update your software regularly and on time.