A human resource information system or HRIS is a software that provides a centralized repository of employee master data. HR professionals then use this data to complete their processes. An HRIS is a software package that provides tools for performance management, recruitment, learning & development. You can choose to run the HRIS on-premises or opt for cloud-based storage. When the software runs outside of the company’s premises, it makes it much easier to update.
Benefits of a Human Resource Information System
1. Record-keeping and Compliance
An HRIS is essentially a record-keeping system that keeps track of changes related to employees. It is considered as the one source of truth when it comes to personnel data. HR professionals also collect data for professional reasons. These include material for identification for employees in case of theft, other misbehaviors, first contact information. Moreover, it also includes identification information for taxes and expiration dates for mandatory certification. All such information can easily be stored in the HRIS.
2. HR Strategy
HRIS helps you get centralized access to information. Having all information in one place will not only save time but also help you get accurate data. Moreover, HRIS enables tracking of data required to advance HR operations and business strategy. Depending on the organization’s priority, you need to analyze different data, and HRIS lets you achieve the same.
3. Self-Service HR
Another significant advantage of using an HRIS is offering self-service HR to employees. So, how does this benefit the employees? Well, this helps them manage their own affairs. When done in the right manner, the HRIS can offer a good employee experience. With organizations having 50+ members managing basic information in Excel becomes challenging and simple procedures like approving holidays need to be standardized.
Different HRIS Systems & Software
There are many kinds of HRIS systems and software. A human resource information system encompasses all the functionalities for HR. These include:
1. Applicant Tracking System (ATS)
An ATS is capable of handling all your company’s recruiting needs. It tracks candidates’ information and resumes. Thus, helping recruiters match job openings to suitable candidates from the application and pool and fulfill the hiring process with ease.
Payroll helps automate the payment process of employees. You can also choose to feed contract data into this system. The system combines the time and attendance data to create payment orders at the month-end.
3. Benefits Management
Employee benefits are a critical aspect of compensation and need to be managed. Most of the human resource information systems offer employee self-service models for employee benefits.
Thus, employees can select benefits with ease. This is ideal for all workers as one may want more leaves. On the other hand, the other one would need a more expensive company car.
4.Time & Attendance
This module collects time and attendance data from employees. This is relevant for blue-collar work where workers clock in and out. Based on this data, payment orders are generated, and salaries are given to employees.
Learning and development is an essential element when it comes to employee management. This module allows HR to track qualifications, skills, and the attitude of employees. This module is also known as an LMS or Learning Management System when used independently. It usually includes e-learning and other courses to be followed by employees.
6. Performance Management
Performance management is an integral part of managing people. Performance ratings are generated monthly or quarterly by the direct manager or peers of the employee.
7. Succession Planning
HR personnel also need to create a pipeline and have replacements available for key roles in the organization.
8. Employee Self-Service
Over the upcoming years, organizations are focussing increasingly on having employees and their direct supervisors manage their own data. Employees can easily manage their holidays and take leave without a lengthy approval process. Once leave is applied for, it is immediately saved into the system and registered to track for payroll.
9. Reporting & Analytics
Last but not least, reporting and analytics is a rarer module in human resource information systems. Modern systems enable the creation of reports on topics like employee turnover, performance, and absence. Not only do these reports help in better decision making, but it also helps get a clear idea of employee issues. Thus, a human resource information system is a one-stop-solution for all your recruiting, talent management, payroll, and performance management needs.
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