What is an HRIS System?
Human Resources Information Systems (HRIS) stores and collects data on an organisation's employees. An HRIS includes the essential functionalities for end-to-end Human Resources Management (HRM). An HRIS system is for managing recruiting employees, recording, and managing employee performance, learning & development tracking and engagement and other employee recording and reporting depending on the business requirements.
An HRIS system is HR software. Today, most companies opt for cloud HRIS software that runs outside their premises, so it is easy to update.
Benefits of an HRIS System
An HRIS system has many business and employee benefits. Most sizeable companies implement an HRIS system to manage and record employee information for reporting and strategy of human resources as well as to manage compliance.
- Record-keeping: HRIS systems enable automated and standardised record keeping, reporting, and self-service. Information management improves if the employees can update their data themselves. The HRIS system is predominantly the sole source of truth for personnel data.
- Compliance - recording and reporting: Most of the information collected about employees is for compliance. Employers collect compliance data for several reasons: identification for emergencies, taxation, and fraud, as well as mandatory certification for the role. Compliance information stored in an HRIS system provides the security required by GDPR. Businesses in Australia and New Zealand faced numerous changes to compliance requirements in 2021. You can download our Quick Guide to Payroll Compliance 2022 to learn more about some of these changes.
- Automation: Maintaining physical files on employees can be time-consuming and laborious to manage. HRIS systems automate many repetitive HR tasks like requesting and approving leave and tracking leave accruals and balances. Once policies are set in the HRIS system, human resource professionals spend less time on administration. Every company can benefit from automation in HR, and we've outlined our top reasons in our e-book Automating your HR Department.
- Employee Experience: A good HRIS system provides employees with a better experience from a more straightforward onboarding process, an app to clock in and out, update their data, and request time off to name a few.
By managing fewer operational tasks, HR can devote their skills and time to strategic HR initiatives that improve business results. With an HRIS, HR can increase productivity, improve retention, and monitor company culture.
Types of HRIS Systems
HRMS, HRIS, and HCM are the three main types of HRIS systems. Different HRIS solutions suit different businesses depending on the features and capabilities required by the business. Before implementation, understanding the differences in HRIS systems and how they work is essential.
HRIS - Human Resources Information System
An HRIS system helps companies manage policies and procedures while keeping employee information organised and accessible.
HCM - Human Resources Information System
A Human capital management system functions similarly to an HRIS but includes additional features, such as talent management, salary planning, and succession planning, to name a few.
HRMS - Human Resources Management Software
HRMS is software for human resources management and is nearly identical to HRIS. HCM systems may also sometimes be integrated with HRMS software, but the primary use is for time and labour tracking.
HRIS System vs. HRIS Software – What are the differences?
The task is to manage the human resources in an organisation so whether we call the solution a Human Resource Information System or Human Resource Information Software or even Human Resources Information Solution. The S is either system, software, or solution.
HRIS System is the platform that companies use to manage the challenges of managing people. HRIS offers scalable solutions for businesses to manage human capital and growth.
An integrated HR and payroll solution provides a customisable end-to-end reporting that provides real-time access to key employee data. By integrating these systems, you can access key HR and business metrics at any time for more meaningful insights - all from within a single system. In the blog Three tips for integrating HR & Payroll we share tips on employee record management, importing and exporting data and validating data.
HRIS Features
Most HRIS systems will include basic features to assist with recruiting and talent acquisition, compensation, organizational management, and absence management (such as vacation, sick leave, and personal time off). Additional features may be available based on business requirements.
Record Keeping: Streamline HR processes and capture and record essential data. The essentials of HR are to manage your people, automate processes, collect data, create reports, and store all the HR data in one easy-to-access location.
Onboarding: Provide a positive new starter experience. Automating the onboarding process helps to reduce administration costs while also giving new team members a positive start.
Time Tracking: With an HRIS that includes time and attendance tracking, you can eliminate double entry of data, increase costing accuracy, and automate the submission process, offering a better employee experience.
Leave management: An HRIS system helps you manage your employees' leave easily and transparently. You and your employees have complete visibility over all their entitlements in one place, and the approval process is automated.
Payroll: Payroll is complex and requires time tracking and leave management data to ensure accurate payment for employees. Managing payroll can be challenging and time-consuming, so we have outlined some pitfalls in our eBook How to Avoid the 6 pitfalls of payroll. An HRIS system with a payroll engine helps eliminate data searches and cross-checking for a smoother pay run and saves time.
Compliance: Keep your business safe and productive. Keeping track of your employees' compliance records is often challenging to comply with operational and regulatory requirements. An HRIS system helps safeguard your business from workforce-related risks.
Security: Take your employee data seriously. Most HRIS systems offer additional benefits in payroll security like single sign-on, two-factor authentication, and custom password policies. Software providers are also very conscious of data security and cover this by ensuring that your data is hosted in a trustworthy environment, is protected with encryption, monitored 24/7 and hosted in your local country.
Accessibility and reliability are also major requirements when choosing an HRIS solution since it is about people management. Due to strict timeframes and legislative deadlines, there is truly little margin for unplanned outages, so HRIS system providers must ensure system recovery and stability.
Real-time Reporting and Data Analysis: HRIS systems provide real-time workforce insights, which can be used to improve organizational culture, performance, and productivity. Advanced HRIS systems allow you to report on any data within the software, even custom fields. From employee demographics to job costing, time and attendance variances and timely insights into every aspect of your business.
The function of an HRIS System
The function of an HRIS system is to automate tasks and allow employees to self-service access to procedures and policies view payslips, request leave and input time and attendance. Also ensuring the company is compliant and has all the data required for HR strategy and growth. Today's HRIS systems increase operational efficiency and improve employee satisfaction by creating a standard framework across the organisation.
Users
In today's era of employee experience, organisations are going out of their way to boost their employee management strategies to help keep their workforce happy, engaged, autonomous and productive. It is in this area that an HRIS system excels. An HRIS system helps organisations manage HR information by combining human resources with information technology.
You can significantly impact your corporate and workplace culture by giving your team the autonomy they desire. Our research supports this. Learn why greater workplace autonomy will boost your revenue and performance while giving your people what they want in our Autonomy to the People report.
The HR professionals predominantly set up the HRIS system and use the HRIS system to automate HR processes in their organisation. The comprehensive reporting that an HRIS system provides holistic employee data to create meaningful insights and reports per employee, department or business unit depending on the set-up and company structure.
Line managers use the HRIS system to manage and record leave requests, update employee records, manage compliance required for roles, provide reporting, and sign off on additional hours worked and time sheets. They can also use the HRIS system to conduct and report on performance reviews.
Employees can access various HR functions online through a password-protected self-service portal using an HRIS system. Employees can apply for leave, clock in and out of work, view their attendance records, upload necessary documents, refer to company policies, view company announcements, and view their pay slips.
In short, the HRIS system is used by every employee of an organisation to perform HR-related tasks. Ultimately an HRIS System helps reduce the time, effort, and cost of managing HR manually. To learn more about empowering your teams download our eBook 5 Ways to Power up your People.
HRIS Payroll Systems
HRIS Payroll systems automate the processing and payment of wages and manage payroll-related compliance. For compliance and employee reporting, every employer must report data to the tax office. Implementing an HRIS payroll system that automates the process is the simplest way to accomplish this.
The Future of HRIS
Automation is changing the workplace dramatically. Humans are increasingly using technology in more sophisticated ways.
Cloud HRIS systems are already transforming the workforce as technology, and human intelligence synergise. The advancement of cloud technology in HR is creating an opportunity to change HRIS from a people-data management system to one that makes a more human workplace experience. HRIS will become more helpful and intuitive in the future, enabling employees to meet their objectives faster, easier, and more efficiently.
HRIS and employee engagement will be significantly impacted by machine learning and artificial intelligence. Over $13 trillion will be generated by artificial intelligence by 2030, according to a McKinsey study. Every industry, including human resources, is expected to be transformed by machine learning.
With machine learning for employment, the main concern is making technology simpler and safer. A human resources management system must adhere to all security and privacy requirements when managing sensitive employee and company data. A second factor is employees enjoy talking with a live person when dealing with HR issues, so organisations must retain the human element while harnessing artificial intelligence’s benefits.
Using machine learning in HR technology, managers can spend more time collaborating with employees and nurturing a productive work environment by automating repetitive administrative tasks.
HR's top three artificial intelligence applications are talent acquisition, employee onboarding, and personnel development.
Talent acquisition for a company is an area that is time-consuming and requires a lot of human intervention from screening candidates, reviewing resumes, managing the interview process, and fielding numerous questions from internal stakeholders and candidates.
Using artificial intelligence and machine learning, HR professionals can concentrate on conducting the interview and other essential tasks by using the machine learning model to schedule interviews with the top candidates.
With AI-enabled screening, you can pick the candidates with the most relevant skill set and perform background checks and other analyses to ensure you get the right candidate for the role.
Once the new candidate has accepted the role, the onboarding begins. With AI, the onboarding process helps employees learn everything they need, from company policies to sharing the data they need to provide to get paid.
With onboarding processes proven to boost employee retention and productivity, it makes sense to use machine learning to streamline this process.
Professional development and investing in your employees are also important applications of AI in human resources. Using AI-integrated systems can help companies train and hone the skills of their employees.
Modern technology and industry innovations may change the skillset needed for a position. The machine learning model can recommend training videos or learning programs by assessing their current skill level.
In the same way, artificial intelligence can analyse enormous amounts of data to determine which employees need training - and in which fields.
Employees can communicate with chatbots powered by artificial intelligence, for instance. In addition, a machine learning model can automate tasks like benefits administration and interview scheduling, which can consume much of an HR professional's time. With COVID-19, we learned the importance of communicating with our teams using various media.
Conclusion
Artificial intelligence is not far away in the future. From recruiting and onboarding to professional development, machine learning models streamline HR processes. The implementation of AI in HR will increase productivity and reduce operational costs and time spent on mundane, repetitive tasks. Furthermore, it will improve employee retention rates by improving the overall employee experience. The way human resources professionals interact with their teams has changed radically, and the use of technology will only continue to grow.
Your team can benefit from technology when it comes to making communication personal, meaningful, and action-oriented. With our HRIS Solutions, take advantage of our 35 years of experience connecting people, payroll, and processes to drive better business outcomes throughout your company.