Human resource information system (HRIS) is defined as a software or online solution that is used for data entry, data tracking, and data management of all human resources operations of an organization.
It is thus an accessible, actionable database that enables the smooth operation of all HR systems hosted either on the organization’s server, the cloud, or on that of an outsourced vendor. An HRIS is often referred to an HRMS (human resources management system) since it aids in effective human resource management and planning.
An HRIS includes under its umbrella a wide range of systems. It includes all aspects of managing the employee database and directory, applicant tracking, benefits administration, payroll processes, work scheduling, time and attendance, leaves tracking, electronic signatures, compliance protocols, customizable insight reports, employee self-service, performance management, and HR processes taken care of on mobile apps.
HRIS Processes and Working Components
At present, all human resource functions are dealing with quite a data dump since every interaction that a candidate or an employee has with the organization is captured and stored as data. A human resource information system thus becomes crucial in making sense of all this data – to not only collect and store data effectively but to gather the information that would enable effective workflow and improve efficiency.
Most HRIS solutions today offer customized systems based on the unique needs and growth plans of the organization. Below are the six key HRIS processes and working components that most organizations require in some combination.
The core offering of most human resource information system solutions is a ready-access database where all employee information can be stored and managed effectively. The HR team (or anyone managing the portal) can easily input all personnel data into the system. The point is to be able to access all this data and relevant metric from it on demand from anywhere across the globe.
The kind of data stored on the system ranges from compensation information, emergency contact details, and education history to present contact information, learning metrics, and performance review scores. The database forms the heart of all HR functions and could prove to be an effective online or cloud-hosted backup for a largely paperless office.
Time and labor management
Monitoring the clocking hours of every single employee is a time-intensive task. With a majority of offices today allowing employees to either punch in biometrically or log on to input their own hours, this daily dose of data needs effective management.
Managers can now approve leave requests, and the data can be directly linked to payroll. A non-intrusive but efficient human resource information system can thus keep a close tab on punctuality and attendance.
Payroll is one of the most important functions of HR. With a lean human resource information system allowing easy download or upload of employee hours and attendance data, the number crunch can be made a lot simpler, and deposits to employees made more seamless. This also leads to fewer errors by reducing human intervention. Moreover, most HRIS payroll software lead to an improvement in tax compliance, especially for organizations that deal with multiple tax levels.
Benefits management does not pertain only to medical benefits and retirement investments, but all queries, feedback, data, and communication related to benefits. Such applications provide a one-stop platform experience for all employers and employees alike, add transparency, and enable smoother operations.
Every employee is affected by the benefits regulations and strategy, and how that is managed affects the total experience that the employee has at work.
Most human resource information system software allows limited user access to employees, but even that moderate level of employee self-service is a step forward in creating a culture where employees have more operational freedom. The interface that allows employees to update their personal information, review pay scales, change retirement benefit programs, update direct deposit information or download benefit election documents needs to provide a user experience that is easy, integrated, and time-saving.
Talent acquisition and retention
Acquiring and retaining the right talent is how an organization can hope to grow. With that context in mind, recruitment and retention are crucial components of any HRIS and are ranked by most organizations as must-have features.
Getting the right talent onboard is just the first step to the talent puzzle. Employees also need to be provided with the right training, career pathing, and reward plans to enable growth, boost morale, and create job happiness. HRIS tools can improve the candidate experience while also making it easier for recruiters to source, track, and engage with the right talent.