What Is An HRIS? Get Familiar With Human Resource Systems

A human resources information system (HRIS) is an HR software application that allows businesses to manage employee data. You can use an HRIS to track everything from employee roles and responsibilities to skills and qualifications, compensation and benefits, and HR performance metrics. Read on to learn more about HRIS, its use, the types, and why companies use it. 

What is an HRIS?

An HRIS provides a database and tools for managing employee information. HRIS systems typically include features to track the following employee data:

• Leave and attendance

• Benefits administration

• Performance management

• Personal information

Some HRIS systems can allow you to track and analyse other functions, such as payroll and timesheets. A human resources management system (HRMS) broadens the scope of an HRIS by incorporating additional features such as talent management.

What role does an HRIS fulfil in human resources?

The purpose of an HRIS is to allow HR departments and stakeholders to create, manage, and store employee data such as:

• Contact information

• Job history

• Performance reviews

• Compensation information 

An HRIS keeps track of employee progress and runs various reports to help with organisational processes and decision-making.

Why do companies use an HRIS, and why is it beneficial?

An HRIS can help streamline and automate many tasks associated with managing employee records. By automating these processes, an HRIS can save you time and money whilst reducing the error potential in employee data. 

An HRIS can also help you gain valuable insights into your workforce. For example, by analysing patterns in employee data, you can identify hiring or attrition rate trends. 

Below are other benefits of implementing a human resources information system:

1. Creates greater employee engagement

An HRIS can help create a more engaged workforce by providing employees with access to their records and allowing them to see their performance and progress over time. An HRIS can also provide your employees with tools to manage their benefits and career development, empowering them to be responsible for their professional growth.

2. Open enrolment benefits

An HRIS can make open enrolment season much smoother for employers and employees. An HRIS can help ensure that everyone gets enroled in the correct plan and that no one falls through the cracks by keeping track of employees' benefits and eligibility status. 

Furthermore, an HRIS can also automate many of the tasks associated with open enrolment, such as:

• Sending reminders 

• Distributing information packets

• Freeing up time for HR staff to focus on other priorities

3. Improved collaboration

An HRIS can improve collaboration throughout an organisation by providing a central repository for employee records and information. By making employee data easily accessible, an HRIS can facilitate communication and collaboration between departments. 

Some HRIS features that specifically support team collaboration include document sharing and group chat.

4. Improved training capabilities 

An HRIS can improve an organisation’s training capabilities by providing training initiatives, such as online courses and quizzes, virtual classrooms, and e-learning content libraries.

5. Optimised scheduling and workforce planning

An HRIS can help optimise work schedules and projects by tracking employee availability and skill set. You can create more efficient workflows and staffing plans with enhanced visibility and planning that maximise productivity whilst minimising overtime costs. 

Your HRIS might offer features that support scheduling optimisation, such as shift rotation and automatic leave request processing.

6. Payroll, HR productivity, and automation

Having an HRIS can help automate payroll processes by keeping track of employee hours worked and calculating pay based on pre-set wage rates. 

Other aspects that can be automated with an HRIS is employment relationship, such as onboarding new hires, managing performance reviews, processing termination paperwork, etc. This automation can save time and reduce costs. It allows your HR staff to focus on strategic initiatives rather than having to do administrative tasks. 

7. Reduces errors and maintains compliance with laws and standards

An HRIS can help you maintain compliance with government regulations, such as those related to Employees’ Provident Fund (EPF) Scheme and Tax Deducted at Source (TDS). 

Furthermore, HRIS may even automate tasks associated with corporate compliance, such as tracking employee leave balances. These automations can help reduce errors and ensure your organisation meets its compliance obligations.

Types of HRIS systems 

Two main categories of HRIS include: on-premise and cloud-based. On-premise HRIS systems are installed on a company’s servers and require IT support for maintenance and updates. Cloud-based HRIS systems get hosted by the software vendor, and access is via the internet. They are typically easy to use and require less IT support. 

You’ll find many HRIS systems, each with unique features and capabilities. Following are some of the types of HRIS systems you might choose to adopt:

• Operational HRIS systems support the daily operations of an HR department. These systems typically include modules for tracking employee data, managing employee records, and processing payroll.

• Tactical HRIS systems support specific HR functions. These systems often have recruiting, performance management, and training and development modules.

• Strategic HRIS systems support the strategic goals of the organisation. These systems can help with the strategic side of human capital, like workforce planning, succession planning, and talent management.

• A comprehensive HRIS system supports all aspects of the HR function. These may come with modules for the above functions, employee self-service, benefits administration, and time and attendance tracking.

• Limited-function HRIS systems support a limited number of HR functions or processes. You’ll get modules for essential aspects of HR, such as employee data management but not every feature.

Examples of HRIS software companies use 

Many companies provide HRIS software. HR software comes with its own features and benefits, so it is essential to research software with options that meet your organisation's needs. Some popular HRIS solutions include:

Skills you'll need to implement an HRIS

When you’re looking to implement a new HRIS in your organisation, be aware that it is a change management process and may involve a portfolio of projects rather than a single one. You'll need to be strategic in your system choice and delivery. 

Some necessary skills for adapting HR processes, protocols, and technologies are:

• Analytical skills to identify areas for improvement

• Communication and interpersonal skills 

• Project management skills to lead process improvement initiatives

• Change management skills to manage resistance and implement new processes

Human resources education and training

Human resources education and training help you to stay updated with the latest technology, develop new skills, and boost your resume.

Most senior HR jobs involved in the strategic side of an HRIS require a bachelor's degree, and some require a master's degree. Certifications can also enhance your chances of landing competitive HR roles where you’ll influence HR processes.

Human resource management degrees 

A human resources degree provides you with the knowledge and skills necessary to perform HR-related duties. Through coursework, internships, and other experiential learning opportunities, you learn how to:

• Identify and resolve workplace issues

• Recruit and select employees

• Train and develop staff members

• Manage employee benefits programmes

• Administer payroll systems

• Understand diversity in the workplace

• Plan the workforce and performance management

• Mediate disputes between employees or departments within an organisation

Get started with Coursera

HRIS helps streamline HR tasks and processes, ensuring standardised record-keeping and reporting. HRIS data can also assist firms in payroll management and workforce scheduling. If you’re interested in entering the HR field, consider learning more from Specialisations and courses. An HR Specialisation can boost your resume and skill set. You might consider the Human Resource Management: HR for People Managers Specialisation offered on Coursera.