Human Resources Information System

The most popular HR software is a human resources information system (HRIS). This article will provide an overview of what an HRIS is, as well as all the information you need to have a fundamental grasp of the HRIS. A software program known as a human resources information system (HRIS) is used to organize and process specific personnel data as well as human resources-related regulations and procedures. The HRIS standardizes human resources (HR) duties and procedures while promoting accurate record-keeping and reporting as an interactive system of information management.

In essence, an HRIS is a “two-way street” where data on workers is supplied to the company and then returned to the employees. An HRIS provides more smooth, simplified, and effective interactions between workers and the businesses they work for while allowing HR professionals to carry out more strategic and high-value work. This is done by getting rid of paper-based and manual HR-related activities.

What is an HRIS?

Human Resources Information System is what it’s called. A system called the HRIS is used to gather and keep track of personnel data. Most of the time, an HRIS includes all essential features required for complete human resources management (HRM). It is a system for learning and development, performance management, and other things.

The term “HRIS” may also refer to HRIS software. This is a little perplexing since it indicates that different systems may execute various pieces of software. This is not the case, however. The HRIS is essentially a set of HR software. The HRIS may operate either on the business’s own technological infrastructure or, increasingly often currently, on the cloud. This indicates that the HR software is being used off-site, which makes updating it considerably simpler.

HRIS system and HRMS, or human resources management system, are two more terms that are often used. These are all other names for the same concept. These programs together go by the acronym HCM or human capital management. The words HRIS and HRIS systems will be used interchangeably throughout this paper.

The Two Foundations of an HRIS System

Two pillars that provide the basis for managing people and policies to enhance overall organizational success are the cornerstone of an HRIS.

Organizational structure

Roles, functions, and reporting levels are all part of the HRIS structure. HRIS offers identifiable responsibility and a roadmap for operational functionality and consistency by establishing the organizational structure.

Utilizing the appropriate personnel to handle business difficulties is made possible by the correct HRIS. Your HRIS can assist you in creating a workforce that has the appropriate people, with the right talents, working in the right roles and under the right structure, to accomplish your strategic objectives. This is done via the consistent, automated management of acquisition and recruitment data.

Management of employee data

The HRIS offers a thorough picture of every employee, including name, address, date of hiring, pay, benefit choices, and much more. It is similar to customer relationship management but in an employer/employee scenario. With the appropriate information, you’ll be better able to relate to your workers, assist them in creating career goals, locate the best training, and boost their performance. Self-service, reporting, and automatic record-keeping are all made possible by the HRIS. This may result in more accurate and current information management that boosts productivity and offers workers comfort and simplicity of use.

HRIS Users, Features, and Functions

Basic functions that aid with hiring and talent acquisition, remuneration, organizational administration, and absence management are included in a standard HRIS (such as vacation, sick leave, and personal time off). To fulfill corporate demands, other functionalities might be added. The solution improves employee experience while standardizing and ensuring uniformity across the business by automating HR-related operations and enabling self-service access to rules and procedures. The HRIS is used by every employee of the firm, however, administrators, payroll specialists, talent management experts, and recruiters are the HRIS’s most proficient users. Regular interactions with the HRIS are an important part of these personnel’s employment.

The Problems with Human Resource Management Systems

Every company is different and has a different set of difficulties. Those issues need to be covered by your HRIS. Here are a few of the most typical HRIS problems including

• Security and privacy of data: The protection of employee data privacy and security is one of the main issues with administering an HRIS. Numerous sensitive and private data sets are included in these systems, which must be safeguarded. How to create a solution that is smart enough to allow every person that enters the system to acquire the information they need to execute a job without accessing information they do not have permission to view is a fundamental HRIS difficulty that enterprises must overcome.

• Legislation and observance: Regulations must be followed by HRIS data access rules. Every company has to make sure that its HRIS complies with laws that are always changing. Companies with a worldwide presence find this to be especially difficult. Every user must be able to swiftly and simply complete transactions via the system without jeopardizing confidentiality or breaking the law for it to be useful and functioning.

• Commercial disruption: Challenges might also arise from ongoing updates to HRIS functionality. Organizations sometimes find it difficult to keep up with HRIS updates and improvements in an age of constant disruptive innovation. Similar to this, choosing the best HRIS for your company might be challenging. With so many features and choices at your disposal, it’s critical that you choose a system that best supports your company’s objectives and avoids becoming sidetracked by extras that may not be necessary.

Advantages of an HRIS

Using an HRIS provides a lot of definite advantages, as we go through in our Digital HR Certificate Program. Because of this, businesses of all sizes use this application to assist their human resources initiatives. The HRIS is the primary repository for personnel data. Then, in a single system, a variety of personnel data is readily available.

Record-keeping

A record-keeping system called an HRIS monitors changes to everything involving personnel. When it comes to personnel data, the HRIS might be seen as the only reliable source of information.

Compliance

For compliance-related purposes, certain data is gathered and retained. This contains information on how to identify personnel in the event of theft, fraud, or other wrongdoing, first responder contacts in the event of an accident, citizen identifying details for the tax office, and obligatory certification expiry dates. The HRIS has the capacity to store all of this data. Data must be kept safely, securely, and in accordance with GDPR requirements.

Efficiency

Accuracy is improved and time is saved by having all of this data in one location. Many personnel records are still kept by some businesses as physical papers. It might take a lot of staff work to find the appropriate folder and document.

HR approach

The HRIS makes it possible to monitor the data needed to enhance company and HR strategies. There will be various types of data that must be tracked depending on the organization’s priorities. The HRIS excels in this situation.

HR Self-Service

Offering managers and workers self-service HR is the last advantage. Employees may now handle their own business thanks to this. The HRIS may provide a positive employee experience when implemented properly. Remember that not all HRIS systems do this in an intuitive way!

For the company, HR, and the individual, using an HRIS offers several advantages. When you have between 30 and 50 workers, using an HRIS becomes intriguing.

At this point, keeping this fundamental data in Excel becomes time-consuming, and simple processes like employee vacation approval need to be standardized. For big firms, which often utilize more sophisticated HRIS systems to serve various HR activities, using an HRIS is extremely advantageous. A simpler HRIS would be appropriate for small enterprises.

HRIS features

There are several HRIS software and system types. All independent capabilities are a component of the system since an HRIS includes all HR-related functions. These features consist of:

Candidate Management System (ATS)

This program takes care of all the business’ hiring requirements. It keeps track of applicant data and resumes, enabling recruiters to connect job vacancies with qualified applicants from the applicant pool of the business, and aids in directing the recruiting process.

Payroll

The payroll system automates how workers are paid. This system is often used to input contractual data as well as information on new recruits, sometimes combining it with time and attendance data, and at the conclusion of each month, payment orders are generated.

Benefits management

HRIS’s benefits management feature is another one. Benefits for employees are a crucial component of pay and are also controlled under this system. Employee self-service models for benefits are available via more sophisticated technologies. Employees have the option to choose the benefits they want in this situation. If one wants a more costly business automobile, the other one could desire more paternity leave. The cafeteria concept is another name for this self-service method of handling benefits.

Attendance and Time

Employee time and attendance information is collected by this module. These are particularly important for shift workers who clock in and out of their shifts. Employees used to often record their working hours on a sheet of paper in the past. The data would then be manually entered by the manager into a timekeeping program. Payment orders were created and sent to all workers based on this data. Workers often use their fingerprints or cards that are synchronized with an HRIS to check in for work these days. This provides precise arrival and departure times. Any tardiness problems are quickly identified.

Training

When it comes to personnel management, learning and growth are important components. This module enables HR to keep track of the workers’ training, credentials, and abilities as well as a list of the courses the business offers its employees. When used alone, this module is often referred to as an LMS or learning management system. An LMS often has accessible e-learning options as well as additional courses that workers may take.

Performance supervision

An important aspect of managing people is performance management. Once or more times a year, the employee’s peers or direct manager will create a performance evaluation for them.

Preparation for succession

Another essential element of an HRIS is the development of a talent pipeline and the availability of replacements for crucial positions within the business.

Staff self-service

Self-service for employees has previously been discussed. Organizations are putting more and more emphasis on letting staff members and their immediate managers handle their own data. A request for a holiday may be made by the employee directly. These are instantly saved into the system after receiving approval (and registered to track for payroll and benefits purposes).

Analytics & Reporting

The reporting and analytics feature in HRIS systems is far less common. Automated HR reports may be generated by modern systems on a variety of subjects, including employee turnover, absenteeism, performance, and more. Analyzing this information is part of analytics, which helps decision-makers make more informed choices. More details about this are provided in the section below.

Analytics and reporting in an HRIS

The design of HRIS systems as transactional systems is a feature that they all share. They are databases that keep track of business activities. When new workers join the business, it is an example of a transaction. The individual becomes “active” and a new employment record is created for them. Three months after leaving the firm, a new transaction is recorded, changing the employee’s status to “terminated.”

These systems are poor in data reporting and analytics because they are designed to be transactional systems. Simply said, they weren’t intended for this. Additionally, not all HRIS systems come equipped with the aforementioned features. A few features, such as payroll, an LMS, or an ATS, may also be recorded in other systems. This makes HR reporting even more difficult since data is spread across many different platforms. A new layer must be put on top of all HR systems in order to report and evaluate the HR data. This is the second factor that contributes to the restricted practical use of reporting and analytics for these systems. Remember this while speaking with HRIS vendors since they often advertise how great their systems are at data reporting and analytics.

HRIS vendors

There are hundreds of HRIS providers to select from, and the market for HRIS software is quite competitive. The most well-known human capital management tools for businesses with 1,000+ employees are included in Gartner’s Magic Quadrant below. Workday, Oracle, SAP, ADP, Ceridian, Kronos, and more companies are among them. It would be hard to include all HRIS vendors or name the top HRIS. It is impossible to generalize since the optimal HRIS for your business will vary depending on its particular requirements. Most people agree that these five HCMs are leaders:

Cornerstone

As one of the top suppliers to small and medium-sized enterprises, Cornerstone OnDemand provides a variety of suites, including those for hiring, training, performance management, and an LMS for online learning.

Workday

Possibly the most well-known HRIS out there is Workday. Since its founding in 2005, it has swiftly expanded into a worldwide HRIS juggernaut with more than 10,000 staff members. Workday is especially suited for medium- and large-sized companies.

SAP

ERP, or an enterprise resource system, is a more popular term for SAP. These are the systems that monitor a company’s resources, which might include things like cash, orders, and employees. After SAP bought SuccessFactors in 2011, SAP SuccessFactors became a significant participant in the HCM sector, particularly for big businesses.

Oracle

In 2011, Oracle HCM Cloud was made available. It has courses on work-life balance, workforce management, workforce rewards, and talent management.

The Best Software

Forbes selected Ultimate Software as the 7th Most Innovative Growth Company. The business offers a single system of records for personnel management, payroll, and HR. Time and attendance, onboarding, performance management, remuneration, succession planning, and other systems are included.

HRIS expert and HRIS analyst

There are two work roles that use the HRIS from the perspective of job functions. The Human Resource Information Specialist is the first one. The organization’s HRIS must be implemented and maintained by the HRIS professional. Additionally, HR personnel will get on-the-job training in the system’s usage in this. The HR department’s IT division often performs this duty.

Support for the HRIS is given by the HRIS analyst. This includes investigating and resolving HRIS issues as well as serving as a liaison with other departments of the company, such as finance and payroll. As an analyst, you also contribute to the development of regular and special HRIS reporting as well as the enhancement of HRIS procedures. This entails making the employee experience with the systems better, developing innovations that are user-friendly, and putting new rules into place so that they are represented in the system. HRIS, however, is now a necessary competency for all HR personnel. There’s a chance that your company lacks HRIS specialists. Large corporations often do this.

Certification in HRIS

We suggest taking a look at our Digital HR Certificate program if you want to have a thorough grasp of the deployment of HRIS and creating and executing a digital HR strategy. You may choose a vendor-specific certification based on the HR platform that your company uses. It is recommended that those who want to specialize in HRIS systems study HRM and IT. While HRM helps in knowing the procedures that the HRIS supports, IT is important for comprehending the complexities of the system. Making judgments about system construction and operation is easier when you combine the two.

6 stages for implementing HRIS

When it comes to the installation of HRIS, we may write a number of papers. We shall provide a high-level summary in this post. There are several steps that make up the software implementation process.

• Search: Discover the requirements for an HRIS among your many stakeholders before you begin your deployment. You may compile a list of possible suppliers based on these specifications. Then you may request bids from these service suppliers. You should have selected an appropriate HRIS supplier by the time this process is over.

• Arrange and plan: You choose an implementation partner, form a steering committee, and assemble an implementation team at this step. The steering committee typically includes senior representatives from your organization’s selected HRIS supplier, the HR director, the internal project manager, and ideally a senior user (optional). Working on the ongoing duties that result from the implementation is the implementation team’s major duty.

• Specify and create: You must now outline your procedures and workflows and establish your user groups. Establish the functional and technical criteria for the security of your HRIS infrastructure and system. Also, keep in mind that at this phase you may need to establish integration between your HRIS and other current systems.

• Set up and run tests: You must assemble a core test team at this phase in order to evaluate your new HRIS and provide suggestions for enhancements. After that, you ought to design a user acceptability test where you may invite many people to provide last-minute comments.

• Communication and training: You must create a technical staff training program, a communication strategy, a frequently asked questions website, and other support papers before the Go-live time.

Key Points to Keep in Mind When Choosing the Best HRIS

You should modify your HRIS system in order to match the unique requirements of your business. However, every business should make sure that the HRIS solution supplier they choose offers two key functional areas.

1. The solution must be able to address every aspect of HR management. This covers hiring, orientation, education, succession planning, and the HR support desk. As your demands evolve, you’ll need to have access to a comprehensive, all-encompassing solution. What is sufficient for you now could not be tomorrow.

2. The solution needs to be a component of a bigger company solution that links finance and HR. One of the most expensive components of any organization’s budget is labor. Any choice that affects individuals will have financial effects. Your business must have total visibility over both its finances and its employees, as well as the interactions between the two. An HRIS that is tightly integrated with the financial department is the best. Ideally, that system will be on the same hardware and employ the same software as the business’s financial operations.

The HRIS Future

The workplace is drastically altering as automated technologies develop. Humans and technology are increasingly collaborating in ever-sophisticated ways. While there are several corporate benefits from this, one concern is that it may dehumanize the workplace. Ironically, technological advancements in the HR industry are opening up the possibility of changing the HRIS from an impersonal people-data management system to a system that fosters a more humane work environment.

The HRIS of the future will be more beneficial and user-friendly, enabling staff members to accomplish their goals more quickly, more conveniently, and with better outcomes. These systems will leverage artificial intelligence (AI) and machine learning (ML) to “detect” what workers are attempting to do and proactively provide solutions, such as changing an address or enrolling in the most appropriate training program. The back-end operational viewpoint will make HRIS advances easier to handle. Upgrade and new release installations will be simpler and more suited to user requirements.

The movement to change the workplace into a place where technology and people collaborate to improve results for everyone will be aided by organizations that incorporate new and emerging technologies into their HRIS. At the center of this transition is the HR function. So that your workplace may become more human as you reach better levels of technology-driven performance, let us assist you in moving your HRIS to the cloud.

Launch and maintain. You can formally launch your HRIS once you have established all of your support procedures. Do not forget to regularly gather feedback and update your training materials to reflect the changing systems. Here, precise and ongoing communication is essential. You may choose and deploy the finest HRIS for your firm by following these six steps. Once again, have a look at the Digital HR Certification program if you want to go further. Design Thinking in HR and developing and executing a Digital HR Strategy are also courses offered in this program. When it comes to determining user needs and putting a software solution into place, these components are crucial.