What is HRIS – Human Resource Information System – 2024 Guide

The Human Resource Information System (HRIS) plays a significant role in SMEs and large companies. It minimizes burnout, increases overall productivity, and allows the HR team to shift their focus to their specific job roles. Companies that handle HR operations manually can never focus on critical strategic areas. Every detail of employee and related HR details must be entered manually on Excel sheets, word docs, or registers, which wastes time. Moreover, the cost to the company increases as a lot of money is wasted on rectifying errors due to manual operations. HRIS has an incomparable role in solving all such problems by automating & streamlining HR processes that further improve employee experiences and strengthen an organization’s strategic goals. In this blog, we have shared a detailed guide on the What is HRIS? importance, benefits, features, and implementation.

What is HRIS?

Human Resource Information System (HRIS) is a software designed to handle day-to-day, time-consuming HR-related operations, such as employee benefits, payroll, attendance, records, etc. The HRIS system simplifies and streamlines the HR processes, increasing data accuracy, time efficiency, and smooth organizational communication. HRIS handles varied stages of employee recruitment, such as Recruitment, Benefits Administration, Performance Management, Training & Development, Employee Engagement, Remote Work Support, and Offboarding. Due to the automated cloud-based HR processes, the system becomes more efficient, along with getting accurate data. Moreover, everything happens in compliance with the latest labour laws & regulations.

HRIS vs HRMS VS HCM

Here is the clear distinction between the HRIS, HRMS and HCM so that you don’t confuse them for each other.

1. HRIS stands for Human Resource Information System (HRIS). HRIS is the connected data management of different HR processes such as payroll, benefits, core HR, workforce management, etc., providing the primary data and workflow automation. It saves HR professionals from executing extreme strategic, high-value work. With the HR teams’ increased responsibilities, such as recruitment & talent acquisition, HRIS plays a vital role in managing, maintaining, and processing employee information and HR policies.

2. HRMS stands for Human Resource Management System (HRMS). It is an expansion of the HRIS that provides a comprehensive suite of software for companies to organize internal HR functions. HRMS has assisted HR professionals in handling the advanced modern workforce. Analysts in the early 2000s used HRMS to illustrate HR software suites when the primary software type was on-premises systems. It possesses all the HRIS functionalities along with the following things:

• Onboarding
• Performance Management
• Employee Engagement
• Employee Attendance
• Recruiting & Applicant Tracking

3. HCM stands for Human Capital Management (HCM) system. It is an expansion of the HRIS and HRMS. Human Capital Management (HCM) is a complete cloud-based suite of HR applications designed to improve the overall employee experience. HCM is highly focused on strategy & planning, incorporating digital assistants, AI, etc, for easy collaboration and information sharing across the teams. HCM is the more advanced level version of the HRIS and HRMS that possess functionalities of both along with the varied additional qualities such as:

• Business Intelligence
• Workforce Modeling
• Succession Planning
• Compensation Planning
• Learning and Development
• Advanced-Data & Analytics
• Compensation Management
• Industry Data and Benchmarks
• Strategic Workforce Planning

Note: The actual features and functionalities of an HRIS, HRMS, and HCM might be distinguished per the software provider based on their general offerings and customized individual client requirements. Above is the general distinction of the different types of HR software its providers offer.

Importance of HRIS

Here is the importance of a Human Resource Information System (HRIS):

1. Maintain Transparency

With the help of a Human Resource Information System (HRIS), employees know what’s happening within the company. Everything becomes transparent in the organization, whether it’s new HR policies, deductions, leaves, upcoming holidays, salary records, offer letter details, or non-disclosure records. They can access it anytime, anywhere, with their login credentials. Nothing is hidden that helps to avoid disputes later on. Moreover, it helps employees to stay updated with the most recent happenings in the company & can act accordingly to make an informed decision.

2. Scalability

Manual HR operations are still manageable with a small team of 2 to 10 individuals. But, it becomes highly clumsy when the number of employees grows. Thanks to the HRIS, which accommodates all such changes in the organization. It handles employee data appropriately, ensuring organizational scalability isn’t an issue. Whether you are an SME or a large enterprise, HRIS is a smart move to keep up with the organizational scalability needs.

3. Organized and Integrations with Other Systems

HRIS makes the entire HR system 10x more organized. It stores, manages, and organizes all the employee & other relevant HR data at one central location. Thus, there is no need to waste time retrieving data from multiple locations as HRIS makes it easy to access from its one central point. HRIS also helps integrate the existing HR-related tools with other applications, such as performance management systems, payroll software, and applicant tracking systems, with the help of Application Programming Interfaces (APIs). After connection, it allows data synchronization, seamless data flow, and precise team communication.

4. Efficiency

The manual method of handling HR tasks is monotonous but also time-consuming & prone to errors. HRIS is essential because it makes the HR system efficient by automating all such manual HR operations, leading to time effectiveness & no errors. Some of the examples are payroll processing, employee record-keeping, and time & attendance tracking.

6. Real-time data

One of the notable things about implementing the HRIS in your organization is getting access to real-time data. It means that whatever changes, modifications, or updates are applied to the data stored at a central location, everybody can access the latest data instantly. This way, everybody will stay informed about current changes, ensuring accurate data circulation, accessible communication & fruitful decision-making with no discrepancies. Moreover, the management will be able to monitor every employee’s performance in real-time. It will allow them to instantly identify the areas of improvement and shift their focus to the critical business areas.

7. Data Centralization

While storing HR data manually through registers, spreadsheets, etc, there was a high risk of data loss, communication barriers, and problems in instant data retrieval. With the arrival of an HRIS, all data is stored at one central location, making it easy for authorized people to access it whenever required. Moreover, this way, all the HR information will be managed appropriately, which will further help in strategic planning & better decision-making.

Benefits of HRIS

Here are the benefits of a Human Resource Information System

1. Cost and Time Savings

HRIS saves enormous costs to the company by reducing manual administrative work and enhancing efficiency. Moreover, it saves time by streamlining HR operations such as employee record-keeping, payroll processing, leave requests, etc.

2. Automate manual Tasks

The HR tasks were earlier managed and executed manually, which didn’t prove to be in the company’s favor. With the help of an HRIS, all such operations are automated and require minimal human intervention, leading to prompt responses to HR queries.

3. Cloud-based platform

In the manual handling of HR activities, data was saved here and there through registers, spreadsheets, etc. It leads to severe communication gaps within teams. In the HRIS, all HR data is stored on a single central cloud-based platform where information is updated on a real-time basis, making it accessible to all instantly.

4. Payroll Accuracy

In the manual way of working, there were substantial payroll-related errors, such as incorrect salary disbursement, wrong tax calculation, and other deductions. With the help of an HRIS, every payroll-related task is calculated and implemented with 100% accuracy and no scope of errors.

5. Enable Employee Self-Service

Employees get self-service portals with the help of an HRIS to directly view, access, and modify their confidential information, such as personal details, time-off balances, pay stubs, leaves, etc. It also eliminates the need for an intermediate in the form of an administrator or other HR staff for fetching such data.

6. Data Security

In manual HR processing, the confidential data isn’t secure. The HRIS platform has a solution to data leakage, breaches & other security threats. It has powerful built-in security features that safeguard sensitive HR & employee data by allowing only authorized access.

7. Decision Making

The HR team can make an informed decision by adopting the HRIS. This decision-making is fruitful for the company’s future with the help of HRIS features such as workforce trends, insightful analytics, and artificial intelligence. Such trends analyze the past years’ data metrics and suggest the right solution for a fruitful future.

8. Compliance Management

Manually handling HR data proved noncompliant with the latest laws, as staying updated with all the recent laws isn’t practically feasible for a human being. Thanks to the HRIS that automates all the compliance-related processes & helps in the documentation generation. It solves this problem by keeping your firm compliant with all the latest labour laws and regulations.

HRIS Functions (Features)

Here are the essential functions and features of a Human Resource Information System:

1. Employee Database Management

The Human Resource Information System (HRIS) manages employee data from one central location. This way, fetching the required data from multiple locations is not a hassle. Such databases comprise employee qualifications, job history, personal information, past performance records, etc.

2. Application Tracking System

HRIS’s most vital function is tracking candidates’ applications. It manages all the applications on a cloud so that they can be fetched whenever they’re required in the future. Moreover, it filters them according to the job requirement to minimize the risk of hiring an unsuitable candidate. This application is further tracked in the hiring process from the beginning till the end.

3. Performance Management

HRIS is crucial for managing the overall performance of an employee. It comprises tools such as tracking employee progress, goal setting, performance reviews, etc. This way, employers can keep an eye on every employee & manage their incentives, rewards & recognition, further improvement training, etc, accordingly. This way, there will be transparent communication between the HR managers, team leads, and their respective teams.

4. Payroll Management

One of the most remarkable functions of a Human Resource Information System (HRIS) is efficiently managing the entire payroll software. It does so by automating all the payroll calculations, appropriately generating paychecks, tracking employee working hours, and accurately recording tax deductions. It allows fair salary disbursement and the most minor scope of payroll calculation errors.

5. Time and Attendance Tracking

One of the most recognized features of an HRIS is tracking the time and attendance of the employees in its cloud-based software. It feeds every relevant detail, including time-off requests, punching time, exit time, breaks, leaves, etc. This way, the HR team gets 100% accurate records of employees, which is further helpful in ensuring compliance, payroll calculation, and fair distribution of employee salaries.

6. Strong Analytics and Reporting

HRIS has certain features that allow it to analyze and predict the future of HR. It happens with the help of robust AI algorithms built into the HRIS software, data science, machine learning, etc. You can use these fruitful insights for strategic decision-making. Moreover, it helps create varied types of reports per the situation. You can retrieve any data by fetching the readymade reports anytime by adjusting filters according to the need.

7. Statutory Compliance

In the manual way of working, we often forget to work according to employee rules and regulations. It can put companies in trouble & litigation issues where they will be required to pay penalties for noncompliance. Moreover, it destroys the company’s reputation and demotivates employees to work diligently. HRIS solves this issue by ensuring every act of the company complies with labour laws and other regulatory requirements.

8. Recruitment and Onboarding

The most basic function of a Human Resource Information System (HRIS) is to manage everything from an employee’s recruitment and onboarding to his offboarding and full and final settlement. Everything related to employee hiring is automated through the HRIS, saving the HR experts an enormous amount of time. It streamlines the recruitment process by handling new joiners’ paperwork, orientation sessions, and training programs.

Key Considerations for Choosing the Best HRIS

Here are the key considerations you need to take into account while choosing the best HRIS for your organization:

1. Assemble Avengers

As a customer, you need to schedule a one-on-one meeting with the HR squad to start the implementation of the Human Resource Information System (HRIS). This squad has a pool of HR specialists and experts with years of hands-on experience. They utilize these many years of knowledge to understand your requirements and help you in Budget Planning and Preparation.

2. List your Requirements

You must state all your requirements and needs of the specific features you wish to have in the human resource information system. It can have a specific layout, functionality, scalability, and further future risk management capabilities of the software. You can also ask to drop or add certain features in the software. The HR masters will learn these needs and customize the software to meet your requirements.

3. Vendor Shopping

It might get overwhelming for you as a customer to find the most suitable Human Resource Information System (HRIS) from the pool of available software. The top-notch HR experts from StartupHR Software solve the confusion regarding How to Choose the best HRIS software. We at StartupHR Software help you find the most relevant software per your requirements. It will save you precious time and unrecognized effort and reduce the extra burden of researching from various online sources.

4. Schedule a Free Demo

Finalizing the software before understanding its benefits, features, and core functionalities might lead to software failure in the long run. At StartupHR Software, we cover all these points in the software demonstration through a demo session for free of cost. Moreover, we help you in connecting with your partner. This way, you can view the working of software on a real-time basis and ask relevant questions related to the interface to make an informed decision.

5. Tech Team Time

A meeting with the tech team is scheduled once you have completed the initial meeting with our HR expert and viewed the 3D software demonstration. It is the second meeting in which we generally assemble the Avengers meeting to note your final decision. You can have a detailed discussion with the tech team on all your remaining queries regarding the software. They will address them instantly or give you 2-3 days for clarification if it requires certain approvals.

6. Deal or No Deal

This is the final closure meeting session held between the client and HR professionals after you have understood everything about HRIS. In this interaction, a detailed discussion takes place related to the cost and funding of the software. The parties, i.e., the customer and the sales expert team, negotiate like pros. Make the informed decision and do the final closure like Shark Tank if you get the best deal. Also, do not forget to give your counteroffer and bargain as much as possible before closing the deal.

7. Employee Training and Implementation

Once you have purchased the HRIS software, you implement it in your organization. After the successful implementation, a training session has to be conducted afterward to get employees well-versed in using the software, ensuring hassle-free working.

What is an Example of HRIS?

Here are some of the examples of HRIS:

1. People Strong

People Strong is the AI-powered, intelligent, and scalable HRIS platform that helps organizations become a talent magnet. It assists the HR teams in simplifying the time-saving complex HR tasks & focuses on developing a future-ready talent workforce. People Strong’s #HRTech 4.0 platform solves the complicated day-to-day HR difficulties throughout the employee life cycle. Their tagline is “#WeArePeopleStrong.”

2. Deel

Deel is a one-stop Human Resource Management System (HRIS) and the #1 Global HR platform that helps you hire compliantly within 5 minutes. It strengthens and streamlines every aspect of HR management across the global teams. Large and small-sized organizations use such an HRIS with 20,000+ businesses across the globe. It is FREE OF COST for businesses having less than 200 employees.

3. BambooHR

BambooHR is the award-winning & easy-to-use HRIS platform that simplifies everything from hiring to retirement. It combines all your HR systems into one platform with its 125+ integrations. BambooHR has been trusted by 30,000+ organizations, such as User Testing, Zip Recruiter, Postmates, etc. The previous client of BambooHR saved hundreds of hours and reduced their HR costs by 40%. The data reveals these clients saved $20,000 annually and 20 hours a week with BambooHR payroll.

4. Workday

Workday is the AI-powered proven leader in Human Resource Management that tackles everything from hiring to the final see-off of an employee. It attracts, trains and retains the right talent with its data-driven insights. Workday helps you solve complex HR business challenges and amplifies your team’s performance with AI. Gartner has recognized it as a “Leader in 2023 Gartner® Magic Quadrant™ for Cloud HCM Suites, Financial Planning report, and Cloud ERP for Service-Centric Enterprises.”

5. Rippling

Rippling HRIS is built on the first unified workforce platform to run a global workforce from HR and Finance to IT effortlessly. Such an HRIS allows you to onboard employees and contractors in 90 seconds. It is the number 1 rated Human Resource Management System (HRIS) and an award-winning HR software that helps you to scale from 2 to 2,000+ employees.

6. Papaya Global

Papaya Global is the world’s first end-to-end HR platform for secure, compliant, and efficient global workforce management. It ensures 100% accuracy, total liability, automated validation, and zero delays. Papaya Global’s workforce platform provides comprehensive data with its excellent workforce analytics. Moreover, it complies with regulations everywhere and ensures employee data security as it follows industry-leading security standards.

FAQ’s

1. What are the three types of HRIS?

The three main types of Human Resource Management System (HRIS) are operational, tactical, and strategic.

• Operational HRIS Solutions makes the system more impactful by assisting the HR team in employee promotions, transfers, hiring and other relevant talent management requirements.
• Tactical HRIS Solutions ensure compliance, system effectiveness and optimal use of existing resources in varied functions such as training, compensation, benefits, recruitment, etc.
• Strategic HRIS Solutions assist organizations in fulfilling the specialized hiring requirements by searching for & retaining suitable talent. It helps in detailed analysis, goal-setting, and decision-making for human capital management.

2. What is the main objective of HRIS?

The main objective of HRIS is to make the HR system more efficient by smartly collecting, managing, storing, and processing the confidential information of an employee in the organization. This way, companies can make more data-driven HR decisions & stay prepared for HR-related future risks.

3. How can HRIS help a company?

HRIS can help your company in the following ways:

• Increased Employee Motivation & Productivity
• Streamlined Employee Onboarding & Data Management
• Enhanced Employee Engagement
• Simplified Payroll Management
• Data-Driven Decision Making
• Ensuring Compliance

Conclusion

HRIS is an integral part of every organization to smoothly & effectively run their HR operations. It saves time, cost, and effort for the HR admins, which can be further focussed on critical strategic planning. Startup HR Software is the leading Human Resource (HR) company with a top-notch Human Resource Information Systems (HRIS) collection in India. We offer the ‘Doubt Clearing Consultation’ and ‘HRIS Demo Session’ from the HR experts FREE OF COST. Please fill out the form present on our official website to avail this facility.