In the world of human resources, managing employee data can feel daunting. There are endless spreadsheets, countless folders, and mountains of paperwork to keep track of.

That's why the Human Resources Information System (HRIS) must be integrated into every company. It's like a radar system that provides HR teams with real-time data to help them navigate through the choppy waters of HR management.

HRIS is a versatile tool that can handle a wide range of functions, from payroll to performance management. These tools have in the past decades revolutionized the way HR teams manage HR data. This article is an exploration of the life-saving tool called HRIS.

What is HRIS?

Simply put, an HRIS is a software system that HR professionals use to manage employee data like names, addresses, national IDs, Social Security numbers, and visa and work permit information. It automates HR processes and streamlines workflows.

Think of it this way: if your HR department was a car, an HRIS would be the engine. That's to say, HRIS provides the power and functionality that drives your HR processes forward.

It is worthy of note that an HRIS is more than just a tool for HR professionals. It's also a strategic asset for businesses. By providing real-time data and analytics, an HRIS helps organizations make informed decisions about their workforce.

For example, it can help identify areas where training is needed, and highlight high-performing employees who deserve recognition. And even predict which employees may be at risk of leaving the company.

The benefits of HRIS

If you want to lubricate your company's HR team to be more productive, then HRIS software is the best option. Let's explore the benefits to see why you should prioritize it for your company

• Streamlines HR Tasks

Imagine you're at a buffet, but instead of grabbing a plate and serving yourself, you have to ask the waiter for every single item you want. Not only is it time-consuming for you, but it's also frustrating for the waiter who has to keep track of all your requests. This is what it's like when HR professionals have to manually handle all the tasks involved in human resources management. HRIS software acts as a buffet plate. Allowing HR professionals to easily access and manage employee information, track performance metrics, and automate repetitive tasks.

• Improves Data Accuracy

Relying on paper-based systems and manual data entry can lead to errors and inconsistencies. HRIS software acts as a translator, ensuring that the original message (data) is accurately and consistently relayed across different systems and departments in the company.

• Enhances Decision Making

Making informed decisions requires access to accurate and up-to-date information. HRIS software acts as a GPS, providing HR professionals with the data and insights they need to make strategic decisions about hiring, training, and performance management.

• Increases Efficiency

Time is money, and manual HR processes can be incredibly time-consuming. Say you're trying to write a book with a quill pen instead of a computer for instance. Although it might be charming, it's not very efficient. HRIS software acts as a high-speed computer, automating tasks and reducing the time and effort required to manage HR processes in a company.

• Enhances Employee Engagement

Employee engagement is crucial for retention and productivity. But it can be difficult to measure and improve them without the right tools. HRIS software acts as a measuring cup, providing HR professionals with a way of measuring engagement levels and identifying areas for improvement.

• Increases Compliance

Compliance with laws and regulations is critical for avoiding legal and financial penalties. Just as you wouldn't drive a car without a seatbelt. Because it's risky and can lead to serious consequences. HRIS software acts as a seatbelt. Ensuring that HR processes are compliant with relevant laws and regulations, reducing the risk of costly penalties.

• Facilitates Remote Work

The COVID-19 pandemic has highlighted the importance of remote work, but managing remote employees can be challenging. HRIS software acts as a virtual herder, providing HR professionals with the tools they need to manage remote employees, track their performance, and ensure they have the resources they need to be productive.

Types of HRIS software

All HRIS software falls under five types based on their functionalities. These are:

#1. The recruitment and Operational HRIS

Tools that aid HR professionals in making decisions about recruiting, promotions, lateral moves, or other internal talent management requirements are included in the operational HRIS category.

They help HR professionals in streamlining the company's hiring procedure. From posting job openings to handling resumes and keeping track of applicants. With it, they can swiftly search through resumes to find the applicants who are most suited for the position.

Examples are:

• BambooHR
• Oracle HCM Cloud
• Workday HCM
• Deputy
• Sapling

#2. Tactical HRIS (used for internal resources)

These tools are used for managing internal resources. The tactical HRIS category focuses on compliance and efficiency in a company. HR directors make strategic decisions about how to use available resources for tasks like compensation, recruiting, training, and benefits by using the tools and features in this area.

Equally, macro-level HR choices about how to invest in and distribute resources most efficiently are supported by tactical HRIS services.

Examples of tactical HRIS are:

• GreenHouse
• Lever
• Kronos
• Workforce Ready
• TalentLMS

#3. Comprehensive HRIS (used for wider and Broader HR needs).

A comprehensive HR information system serves as a one-stop shop for keeping any information required to carry out almost all HR duties, as the name suggests.

To support combined operational, strategic, and tactical HR functions, it acts as a central repository for a wider range of data. These three roles don't work in a vacuum. Rather, they have diverse effects on one another.

For instance, information about a role's design in terms of how it contributes to a company's objectives and where it fits into the reporting structure serves both operational and strategic angles of job analysis and design.

A comprehensive HRIS is best for larger firms. Because it incorporates data from all three different functional system types. HR and corporate leaders can rapidly make decisions based on this information's insightful analysis.

However, smaller companies could prefer a more basic HRIS solution that meets their fundamental HR requirements. In this situation, a comprehensive HRIS might be difficult to set up and maintain. Additionally, the cost of a complete HRIS makes it unaffordable for many smaller companies.

Examples are:

• Cornerstone OnDemand
• UltiPro
• PeopleSoft HCM
• SAP SuccessFactors
• BambooHR

#4. Specialized or limited function HRIS (used for narrow HR needs)

A limited-function HRIS, as opposed to a comprehensive HRIS, concentrates on one or a small number of core information systems to serve a certain set of HR functions, like payroll and benefits administration.

A limited-function HRIS has an employee information system at its heart. Regardless of the function or functions a business focuses on.

All employees' personal and professional information, such as name, residence, minority status, citizenship, education, prior professional experiences, and much more, must be collected, archived, and tracked to do this.

This type of HRIS software is less expensive than comprehensive HRIS solutions. And even small HR teams can manage this type of software by themselves. Therefore, a limited-function HRIS is typically appropriate for smaller businesses with understaffed HR departments.

Examples are:

• Justworks
• Gusto
• CakeHR
• Zenefits
• Paylocity

#5. Strategic HRIS (used for proactive workforce planning and development)

Strategic HRIS modules and functions support analysis, decision-making, and goal-setting in connection to workforce planning. These HRIS strategic components are beneficial for expanding businesses that wish to be deliberate about the people they hire and invest in.

They aid companies with particular hiring requirements in locating the best personnel and lowering turnovers.

Examples of this software are:

• Workday Prism Analytics
• Visier
• Cornerstone Growth Edition
• Oracle Analytics for HR
• IBM Watson Talent Frameworks

The Functions of HRIS

The following are the activities an HRIS software is used for in any company:

• To manage workflow
• Performance appraisals
• Recruiting and applicant tracking
• Benefits/compensation management
• Used for training tracking unlike organizational development system and learning management system (LMS)
• Reporting and basic analytics
• Data management
• Organizational management like departments and positions of employees
• Employee and manager self-services
• Leave and absence management

The difference between an HRIS and an HRMS

Let's define the meaning of these acronyms first. As I already stated, HRMS stands for Human Resources Management System while HRIS stands for Human Resources Information System. High-level HR-related tasks including hiring, onboarding, payroll, and benefits administration are managed by both of these platforms.

However, the difference is in the details, and their methods for doing these duties vary significantly.

An HRIS is a group of several tools that HR professionals can utilize to manage particular HR activities. An HRIS might have tools for handling performance reviews, tracking time and attendance, and managing employee data, for instance.

These products can be used separately or in combination to build a more complete HR management solution.

On the other hand, an HRMS is an all-in-one solution that includes a variety of HR tools, but they're all integrated and designed to work together seamlessly.

In addition to the tools found in an HRIS, an HRMS might also include modules for talent management, succession planning, and workforce analytics. With an HRMS, HR professionals have a single platform that can handle all their HR needs.

Determining which one is best for your company depends on what you need specifically. An HRIS could be adequate for a smaller business with basic HR requirements. An HRMS, however, can be the best option if your company is bigger and has more complicated HR requirements.

Who is an HRIS analyst?

An expert who manages, maintains, and analyzes HRIS data is known as an HRIS analyst. They use their technical skills and expertise to ensure that the system is functioning properly and that all data is accurate and up-to-date.

They also collaborate closely with HR experts to pinpoint problem areas and create solutions that will improve the functionality of the system.

Think of an HRIS analyst as a detective. They're constantly on the lookout for any discrepancies or errors in the system and work to uncover the root cause of the issue. Once the issue has been located, a plan of action is created to address it and stop it from happening again in the future.

You must have a thorough understanding of HR procedures and systems to succeed as an HRIS analyst. Additionally, you'll need to have experience dealing with data and a great eye for detail. If you're not a technical wiz, don't panic; there are lots of training programs and tools to help you gain the abilities you need.

An HRIS analyst is essential to ensure that HR systems are operating well and that data is correct and current in every company.

Key considerations for choosing HRIS software for your company

So far, you've learned the meaning of HRIS software, the benefits to your company, the types, and even the difference between an HRIS and HRMS. Now, when you want to choose an HRIS for your company, what should you prioritize?

• Company Size:

The size of your business should be taken into account first. You might not require sophisticated HRIS software with plenty of features if your company is a small startup.

On the other hand, if your business is bigger and has more complicated HR requirements, you might want to think about using HRIS software with more sophisticated features.

• Functions

The kind of HR functions you must oversee is another factor. For instance, if your primary concerns are payroll and benefits administration, you should look for HRIS software that is made just for those tasks.

As an alternative, an HRIS program that has modules for hiring, onboarding, and performance management might be what you need if you're seeking a more complete HR solution.

• The features

Consider selecting HRIS software like you would an automobile. Make sure you're obtaining the features and settings that are appropriate for your unique requirements. You wouldn't purchase a sports car if you needed to transport a lot of freight, just as you wouldn't select an HRIS program that didn't meet your specific HR demands.

• Simplicity of use

The HRIS software's user interface and simplicity of use should also be taken into account. The software only has value if your HR team can effectively use it. Ensure that the software is simple to use and intuitive and that your team has received the appropriate training.

Conclusion

An HRIS's ability to streamline HR processes, store and analyze employee data, and automate administrative tasks makes it a valuable asset to any company.

When choosing an HRIS software, it's important to consider the size of your company, the specific HR functions you need to manage, and the software’s user interface and ease of use.

By keeping these considerations in mind, you can choose an HRIS software that's right for your company's specific needs and take your HR department to the next level.

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