What is a Human Resource Information System (HRIS)? Types, Examples and Benefits
An HRIS is an essential tool for any HR team. Learn more about what an HRIS can handle, what it can add to an organization, and different examples of HRIS platforms.
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Key takeaways
A human resource information system (HRIS) is a software solution that integrates multiple HR functions into one program to manage a company’s workforce and automate administrative tasks.
HRIS software streamlines the employee lifecycle by centralizing data and automating processes like payroll, benefits administration, recruitment, and time tracking.
Implementing the right HRIS can help an organization save time, reduce costs, and increase employee engagement by providing self-service tools for professional growth.
You can explore HRIS certifications, such as those for Workday or ADP, to build technical skills in specific platforms and validate your abilities to employers.
Learn more about HRIS, exploring its core functionalities, the extensive benefits it offers, and its role in optimizing workforce management practices. Afterward, gain a solid understanding of HR fundamentals with the HRCI Human Resource Associate Professional Certificate.
What is an HRIS?
Efficient and strategic human resource management streamlines processes and adds to a positive workplace culture. A human resources information system (HRIS) is an essential tool for HR teams.
It's a software application designed to streamline the management of an organization's workforce. It acts as a centralized hub for storing, organizing, and analyzing employee data. Human resource (HR) professionals, including HR managers and HR analysts employees can use an HRIS to perform various HR functions more efficiently.
HRIS functions include:
Compensation and benefits
Performance metrics
Leave and attendance
Payroll and timesheets
Personal information
Employment history
Onboarding
What are the types of HRIS?
Two main categories of HRIS are 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 are 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. Here 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 organization's strategic goals. These systems can help with the strategic side of human capital, such as workforce planning, succession planning, and talent management.
A comprehensive HRIS system supports all aspects of the HR function. These may include 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.
You can build platform-specific knowledge, general HRIS familiarity, and technical skills with an HRIS certification.
What are some examples of HRIS?
Each HRIS comes with different features and benefits, so it is essential to find software that meets your organization's needs. Some popular HRIS solutions include:
| HRIS Software | Description |
|---|---|
| Sapling | Sapling is a cloud-based HRIS software company that offers solutions for employee onboarding, performance management, time tracking, and benefits administration. Its platform helps bigger remote companies manage their HR more effectively. |
| HRM Labs | HRM Labs is a cloud-based HRIS software company that provides tools for managing employee information, training, and development. Its platform helps streamline employee functions, such as onboarding, performance, and time-off, and improves the quality and productivity level of the workforce. |
| Optimum | Optimum is a cloud-based HRIS software company that provides payroll processing, benefits administration, talent management, and compliance reporting solutions. Its platform helps automate HR processes and improve communication between managers and employees. |
| Built | Built is an all-in-one team management solution that includes task assignment and tracking features, shift scheduling, leave and attendance tracking, timesheets, and billing. It also has an integrated chat tool, making communication easy for teams. |
| IntelliHR | IntelliHR focuses on delivering predictive people analytics through real-time data collection capabilities across the entire employee lifecycle from prehire to exit. The application's machine learning models analyze data to recommend how companies can optimize engagement, productivity, and retention. |
What are the benefits of an HRIS?
Besides managing employee data, an HRIS system offers several benefits. When it comes to organizational processes and decision-making, you can use the features of an HRIS to analyze trends, generate reports, and gain valuable insights into your workforce. For example, an employee performance report can highlight opportunities to provide more training to develop your team's talent. A report on hiring or attrition rate trends can be used in strategic workforce planning efforts.
Additional benefits provided by using the right HRIS in your company include the following:
1. Save time and reduce costs.
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, allow your staff to focus on strategic initiatives rather than administrative tasks, and reduce the potential for error in employee data.
2. Increase 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.
3. Improve open enrollment benefits.
An HRIS can make open enrollment season much smoother for employers and employees by ensuring everyone gets enrolled in the correct plan. An HRIS can also:
Keep track of employees' benefits and eligibility status.
Automate reminders.
Distribute information packets.
4. Improve collaboration.
An HRIS can improve collaboration throughout an organization 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.
Your HRIS may also offer features that support collaboration, such as document sharing and group chat functionality.
5. Enhance training capabilities.
An HRIS can improve an organization’s training capabilities by providing training initiatives, such as online courses and quizzes, virtual classrooms, and e-learning content libraries.
6. Optimize scheduling and workforce planning.
An HRIS can help optimize 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 maximize productivity while minimizing overtime costs.
Your HRIS might offer features that support scheduling optimization, such as shift-swapping capabilities and automatic time-off request processing.
7. Streamline payroll and other processes.
An HRIS can help automate payroll processes by keeping track of employee hours worked and calculating pay based on preset wage rates. It can also automate other aspects of the employment relationship, such as onboarding new hires, managing performance reviews, processing termination paperwork, and more.
8. Comply with laws and standards.
An HRIS can help you maintain compliance with government regulations, such as those related to equal employment opportunity (EEO) laws and the Family and Medical Leave Act (FMLA).
Your HRIS may even automate tasks associated with compliance, such as tracking employee leave balances or generating reports on EEO statistics. These automations can help reduce errors and ensure your organization meets its compliance obligations.
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