How an HR information system helps your business
A human resources information system (HRIS) is important software for HR departments. In fact, it is the most widely used software within HR departments for its efficiency and functionality, and one of the best types of HR software a business can implement.
Here is a guide on what an HRIS is, its features and how to implement an HRIS in your business.
What is a Human Resources Information System (HRIS)?
An HRMS stores and analyzes employee data for end-to-end human resources management (HRM). This data is used in day-to-day HR tasks, including employee recruiting, payroll processing, accounting, and performance management. Also known as an HRM system, an HRMS allows HR departments to manage and control the costs and time spent on these administrative tasks.
How does a HRIS work?
An HRIS is typically cloud-based, which means the software is managed outside the organization, creating easy access for employees. These systems run on employee data generated by HR staff. HRMS organizes this information into in-depth HR reports. Other data, such as time off requests and benefits, is also automated through HRMS, making it easier for HR staff to manage these tasks.
“The most impactful tools are those that save time, improve efficiency and maximize
productivity for the employee and the organization as a whole, ”said Stephen Kohler, CEO and Founder of Audira Labs. “In today’s environment, that means cloud-based self-service platforms that allow the employee to access, monitor and update data quickly and easily, including access based on the application. “
Here are some common benefits of using an HRMS for your business:
- Record keeping: A HRIS facilitates the search for data thanks to its search functions. Since an HRIS is essentially a record keeping system, it tracks any data changes, allowing HR departments to access the most recent employee information for personnel management.
- Compliance: Information stored in a HRIS can be useful for compliance purposes. Managers can use this stored data in the event of potential employee misconduct, corporate negligence, theft or fraud. Additionally, the data can be used to recertify employees or the company when certifications expire. It also stores employee citizenship, payroll information, and accounting data in case of potential audits.
- Efficiency: HR departments that do not have an HRIS may spend too much time filing documents or searching for information in countless files. An HRIS efficiently stores all the necessary information in one place.
- Strategy: An HRIS enables HR staff to track data that contributes to the department and the business as a whole, creating in-depth reports and strategies across departments.
- Self service: HRIS systems allow employees to take charge of their own HR tasks, including tracking their time, requesting time off, and viewing their benefits. However, make sure that the HRIS system you choose is user-friendly so that employees can enjoy these benefits.
Types of HRIS systems and software
HRIS systems and packages can manage or assist with various HR tasks. When choosing an HRMS, make sure it can meet your most pressing HR needs.
An Applicant Tracking System (ATS) is recruiting software that supports the recruiting needs of an HR department. It keeps track of potential candidates and measures their resumes against job descriptions and posts on job boards. It also helps recruiters move candidates smoothly through the hiring process.
HRIS systems support and automate the payroll management process. As start dates and any other employee changes are updated in the system, it creates payment orders. This module takes data from other functions of the HRIS system, including time, attendance and employee status, to determine payment.
With an efficient user interface, some HRIS systems help employees manage their self-service benefits. They can schedule time off for things like vacation or maternity leave, or sign up for certain benefits once they qualify.
Managers can track the progress of multiple employees through performance management software. This HRIS module provides templates for employee performance audits and guides to create a performance review system for all employees.
Time and presence
Some HRIS software packages can integrate with time and attendance modules that track employee time data. For employees who work shifts, this system allows management to track the hours worked against the scheduled working time for each employee. If an employee is late or absent from work, the system can also send an alert to the manager.
It is important that leaders focus on employee training and learning abilities to move the business forward and advocate for employee personal development. Training modules within an HRIS system track the employee’s skills, certifications and other available training.
Reports and analyzes
Some HRMS features include a reporting and analysis module, which provides in-depth data analysis, including employee turnover rate, performance scores, and employee absenteeism or lateness. Managers can send these reports to other departments, as well as mitigate and respond to employee satisfaction issues.
Self-service for employees
More and more companies allow employees to take charge of their social benefits and the management of their time. From requesting time off to managing their data and performance, employees can benefit from a user-friendly HRIS system.
HRMS and employee data management
HRIS software systems are often presented as transactional systems. The transactions in question include such tasks as hiring a new employee or changing a worker’s employment status. The greater the number of transactions, the more data there is to analyze. These subsequent analyzes allow HR staff to notice trends and formulate solutions based on the data presented.
Reports relevant to HR staff may include the following:
- Employee satisfaction with turnover rates.
- Recruitment costs according to recruitment data.
- Average performance scores by department.
Setting up the HRIS
Here are the most important steps to consider when setting up an HRIS:
1. Understand and explore its functionalities.
Once you have configured your HRIS, take the time to browse its available features and migrate your business data into the system. Make sure you adapt to the new processes provided by the HRIS system to better relay these changes to your employees.
2. Focus on adoption.
Make sure your employees and management are familiar with the new system and provide training on how to use the platform for their specific tasks. This step is easier if you have done your research and selected a user-friendly HRIS system. Both employees and management will benefit from analytics and reports if employees are using these resources correctly.
3. Rely on the seller.
The HRIS provider will be a valuable resource as you find the best ways to meet the needs of your organization. A good provider will have customer service options for troubleshooting as well as training opportunities so that you can learn all the features of the service.
4. Stay up to date.
Many modern HRIS vendors are constantly updating their software to improve their products, creating more value for your business. To take advantage of the new features, update your software regularly and on time.