As businesses grow and their human resource responsibilities increase, the need for a solution such as a Human Resource Information System (HRIS) becomes even more evident. This software enables businesses to automate mundane HR tasks and improve process efficiencies. Although some organizations have started embracing the use of this software, it hasn’t yet become a common practice.
So, what does HRIS stand for? What is its purpose? How can it benefit your organization’s HR department? Let’s find out more.
Table of Contents
What Is a Human Resource Information System?
An HRIS is software that stores employee data including employee recruitment information, payroll details, and performance management information. It assists the HR department in carrying out administrative tasks and managing the digital files of all employees within the organization.
This helps standardize HR tasks and processes, and offers more streamlined interactions between the employee and the organization, thereby allowing HR analysts and managers to focus on high-value, strategic tasks.
Is HRIS Different from a Human Resource Management Information System?
The terms HRIS and HRMIS (Human Resource Management Information System) are often used interchangeably but there are subtle differences between the two.
As stated above, HRIS systems manage employee-related data for a business. This data includes the personal contact information of the employee, their job title, salary data, benefits, and PTO (Paid Time Off) requests. An HRMIS, on the other hand, is an advanced version of an HRIS.
It encompasses the functionalities of an HRIS and is used as a centralized information hub that integrates payroll processes alongside benefits enrollment and employee self-service. Moreover, it also supports employee onboarding, training and development, time tracking and attendance maintenance, workforce forecasting, and performance evaluation.
How Can an HRIS Benefit Your Business?
Every business targets growth and expansion. As teams grow, the volume of employee data increases as well. Managing, recording, and tracking employee data manually can be a challenge and often necessitates additional manpower.
Instead of engaging your HR department in administrative tasks such as these, it is wiser to invest in a Human Resource Information System to organize this data in a single place.
Below are some of the ways an HRIS can assist your business and improve process efficiencies:
Record Keeping
It can be said that an HRIS’s main function is record keeping. Besides storing employee data, it tracks changes in data and allows the HR department to access the most recent employment information. As a result, HR personnel spend less time on clerical tasks and can manage employee information accurately and efficiently.
Compliance
There is little to no margin for error in HR-related tasks. If you have ever partnered with mortgage staffing agencies or any staffing agency in general, they can testify to that! Thanks to HRIS systems monitoring capabilities, the information stored within complies with the regulatory standards. As a result, your organization stays compliant and safe from any legal implications.
Complete Data Security and Privacy
Protecting paper records is extremely difficult. With this system, you can ensure your employee data stays in a centralized place and the information is accessed by authorized personnel only.
Data-Driven Decisions
HRIS is all about data, which the HR department can analyze to obtain valuable insight into subjects such as job satisfaction, company headcount, retention rate, employee salaries, and more. The HR leaders and the company stakeholders can use this data to improve processes, audit the current talent acquisition best practices, identify opportunities for improvement, and make other data-driven decisions.
Employee Empowerment
Most HRIS have a self-service feature for employees to view and manage their personal information, benefits, rewards, leave requests, and similar other data. As your employees will be able to access and make changes in their personal information without contacting Human Resources, the HR department will be able to focus on other tasks such as dealing with insubordination at work, employee engagement, and other major areas besides administration.
Conclusion
The right HRIS can significantly boost the productivity and efficiency of your company’s human resource department. Investing in a Human Resource Information System is a massive undertaking for a business; hence this decision must involve a thorough understanding of your present and future needs.
Additionally, having streamlined workforce management enables managers to identify any labor shortages and find suitable talent by connecting with staffing agencies in Pittsburgh and elsewhere.
FAQs
What Is Human Resource Information System?
It is a system that acts as a centralized repository to collect and store employee data such as name, age, salary, and perks and benefits.
What Is the Purpose of a Human Resource Information System?
The purpose of an HRIS is to help businesses manage and organize people-related data, meet the core HR needs and improve the productivity of the department and other employees.
What Is a Key Advantage of Human Resource Information Systems?
One prominent advantage of using an HRIS is efficient personnel data management.
What Are 3 Different Types Of HRS?
The top three types of HRS include operational, tactical, and strategic systems. An operational system is used for collecting and reporting data. A tactical system is used for processes related to the utilization of human resources. A strategic system assists with pointed analysis and data-driven decision-making.
