Human Resource Information Systems (HRIS) are software solutions that help manage and automate a company’s HR tasks. From payroll processing to performance management, these systems simplify complex HR processes.
In present-day human resource management, HRIS is indispensable. Companies that implement an HRIS can save up to 22% of their time spent on administrative tasks. However, HRIS is not just beneficial for employers; it is also beneficial for employees.
As businesses strive for greater efficiency, HRIS has become an essential tool for managing human resources. In this blog, we will explore how HRIS benefits employers and employees.
What is a Human Resource Information System (HRIS)?
A Human Resource Information System (HRIS) is software that automates and manages HR functions within an organization. It helps improve processes and centralizes employee data for better efficiency and accuracy.
HRIS includes features like payroll processing, benefits administration, and performance tracking. Automation reduces administrative time, allowing HR to focus on growth and strategic decisions.
Employees can access personal data, request time off, and update information through HRIS. This enhances transparency and improves the overall employee experience.
Here are some basic features of HRIS:
- Automation: HRIS automates payroll, benefits, and tax processing, minimizing manual work and reducing errors.
- Recruitment & onboarding: HRIS simplifies hiring processes and tracks applicants from application to onboarding.
- Performance management: HRIS tracks employee goals, feedback, and evaluations to improve performance and development.
- Time and attendance tracking: HRIS tracks work hours, overtime, and attendance, helping manage schedules efficiently.
- Compliance management: HRIS helps ensure compliance with labor laws and regulations by maintaining accurate records.
- Centralized data storage: HRIS stores employee personal details, performance history, and payroll information in one accessible location.
- Self-service portals: Employees can update personal information, request time off, and view benefits through an easy-to-use portal.
To learn about HRIS in detail check out our blog, “All About HRIS: A Complete Guide”.
Now that we have discussed what HRIS is, let’s understand how HRIS benefits employers.
Key Benefits of HRIS for Employers
HRIS has become a crucial tool for employers seeking to optimize their human resource functions. As technology has become inextricably linked with major business processes, HR departments are increasingly relying on HRIS.
The role of an HRIS is comparable to that of any other information system within a company. Like other information systems, an HRIS manages data, automates processes, enhances communication, and supports decision-making. However, it specifically focuses on information related to human resources.
Here are some of the key benefits that HRIS brings to the table for employers:
1. More Efficient HR Teams
HRIS systems take care of the tedious administrative tasks, freeing up HR professionals to focus on what really matters. With fewer resources tied up in manual processes, productivity soars, and teams get more done in less time.
Imagine your HR staff moving away from piles of paperwork to working on talent development, employee engagement, and strategic growth. By automating everyday tasks like payroll and benefits management, HR departments can reclaim valuable time and focus on strategic decisions.
Do you know that HR professionals spend nearly 50% of their time on routine administrative tasks? HRIS systems help reduce this by up to 30%, and HR professionals can focus on more strategic functions.
Here’s how HRIS makes your HR teams more efficient:
- Improved task prioritization: HRIS helps HR teams prioritize more strategic activities by eliminating the need for time-consuming administrative duties.
- Faster decision-making: With instant access to data and real-time reporting, HR teams can make quicker, informed decisions.
- Improved collaboration: HRIS often integrates with other systems, fostering seamless communication between departments and improving team collaboration.
- Optimized resource allocation: HR teams can allocate their time and resources to more strategic initiatives rather than repetitive tasks.
2. Better Information Management and Easy Access
HRIS centralizes employee information into a single system, making it easier for HR teams to access and manage records. This improves data accuracy and reduces the risk of errors caused by using multiple systems or paper-based records.
A single source of truth ensures HR decisions are made using accurate and updated data.
HRIS centralizes information such as:
- Employees’ personal information,
- Performance history,
- Training records, and
- Salary and benefits
- Promotion history
HRIS stores all the relevant information about the employee. This makes it easier for you to manage critical information and access these as required.
This is beneficial from an employer’s point of view because it helps in:
- Centralized data storage: HRIS consolidates all employee information in one place, making it easy to manage and update.
- Quick data retrieval: HR teams can quickly access employee records, reducing time spent searching through multiple systems or files.
- Improved data accuracy: With centralized information, the chances of errors from outdated or duplicated data are minimized.
- Real-time updates: Any changes made to employee information are immediately reflected across the system, ensuring up-to-date records.
3. Reduced Manual Effort Due to Automation
One of the major advantages of HRIS is the automation of repetitive HR tasks, such as payroll processing, benefits administration, and time-off requests. This significantly reduces manual effort, streamlines operations, and ensures that routine tasks are completed efficiently and on time.
Check out our blog, “Need for Automated HR & Payroll Software for Modern-day Organizations”, which highlights the shift towards automation in HR processes.
As the scope of human resource management expands, the need for automation will increase. HRIS helps in this regard by reducing the chances of human error, ensuring accuracy in calculations and reporting.
For example: A company can track vacations automatically by using an HRIS. Through HRIS the company can automate leave request tracking, record updates and provide notifications to HR.
Due to automation, employers can now have leaner HR teams, reducing administrative overhead.
Here’s how HRIS benefits employers by automating HR processes:
- Streamlined payroll processing: Automation reduces the time spent on payroll, allowing HR teams to focus on other tasks.
- Automated benefits management: HRIS automates benefits enrollment and updates, cutting down on manual work and reducing errors.
- Time-off tracking: Employee leave requests are automatically processed, eliminating manual tracking and approval workflows.
- Faster recruitment workflows: HRIS automates job postings, applicant tracking, and interview scheduling, speeding up the hiring process.
- Self-service capabilities: Employees can manage personal information, update records, and request time off, reducing HR’s administrative workload.
4. Data-Driven Insights for Decision Making
An HRIS provides employers with valuable insights by organizing vast amounts of employee and organizational data into actionable reports. Even without advanced HRMS or HCM modules, an HRIS can offer essential analytics that help employers make informed decisions.
Based on HRIS data, valuable insights can be generated in core areas such as:
- Employee turnover
- Various recruitment metrics
- Performance data
- Absenteeism rates
- Key factors influencing performance
For example:
An employer can use data from HRIS to evaluate the effect of monetary and non-monetary rewards on employee performance. The employer can easily trace the information required like salaries and performance metrics from HRIS.
Here are some of the ways HRIS data can benefit an employer:
- Trend analysis: HRIS helps identify trends in benefits utilization, allowing HR to adjust offerings based on employee needs.
- Compensation insights: Generate detailed payroll reports to assess and compare compensation across departments or roles.
- Informed decision-making: With real-time data, HR teams can make faster, data-driven decisions regarding employee benefits and compensation.
- Predictive analytics: When integrated with HRMS and HCM modules, HRIS can provide predictive insights, helping employers anticipate workforce trends.
- Customized reporting: HRIS platforms offer the flexibility to create informative reports, providing the specific insights for strategic planning.
5. Better Compliance
HRIS helps organizations comply with labor laws, tax regulations, and industry-specific requirements. By automating compliance-related tasks, HRIS reduces the risk of human error and ensures proper and timely filing of necessary documentation.
For example, an HRIS can automatically update the company’s tax rates and employee benefits information, ensuring that everything complies with the latest government regulations.
Traditionally, some common HR compliance failures include:
- Incorrectly classifying employees as exempt or non-exempt can lead to violations of wage and hour laws, including overtime pay.
- Not keeping accurate records of employee hours, benefits, and performance reviews can lead to issues during audits or legal disputes.
- Mishandling the termination process, including failure to provide proper notices or severance, can lead to wrongful termination lawsuits.
However, HRIS helps improve companies’ HR compliance. HRIS makes this possible by:
- Automated Tax Updates: HRIS systems automatically adjust tax rates, ensuring compliance with evolving regulations.
- Error Reduction: Automating compliance tasks minimizes human errors in documentation and reporting.
- Audit-Ready Reporting: HRIS provides accurate reports that streamline the audit process.
- Employee Classification Management: Proper tracking ensures adherence to labor laws concerning overtime and minimum wage.
- Timely Filings: Reminders and automated submissions help avoid fines and penalties.
These are just a few of the many benefits of using HRIS for employers. To learn how to assess and implement HRIS in your organization check out our blog, “HRIS Assessment and Selection Implementation”.
These are the general ways in which HRIS benefits the employers. However, HRIS is also greatly beneficial for the employees. Let’s explore how HRIS benefits the employees.
Key Benefits of HRIS for Employees
HRIS brings many benefits for the employees. An HRIS improves the employee experience by giving employees more autonomy, better access to personal data, and smoother communication with HR. Some of the common benefits of HRIS for employees include easier access to information, self service options, and better engagement.
Let’s explore the advantages of HRIS for employees in detail. Here are the key benefits:
1. Smooth Onboarding Experience
A modern HRIS helps employees feel confident from their very first day by offering a structured and interactive onboarding process. Rather than feeling lost or overwhelmed, new hires can access company information, complete paperwork, and get acquainted with their team all before stepping into the office.
For example, a new hire at a tech company is able to log into the HRIS a few days before their start date, meet their team virtually, and complete all necessary documentation. On their first day, they already have a clear understanding of their role and where to go for support.
Here’s how HRIS helps improve employee experience from the first day of their employment:
- Pre-arrival engagement: Employees can complete paperwork and introductions ahead of time using the HRIS platform.
- Clear expectations: HRIS circulates all the necessary information among the new hires. They know their job responsibilities and who they’ll work with from day one.
- Reduced first-day stress: Onboarding tools ensure a smooth transition into the company.
- Faster productivity ramp-up: Employees are ready to hit the ground running with less time spent on manual administrative tasks.
2. Employee Empowerment
With an HRIS, employees can easily access and manage their personal information, whether it’s updating a home address, adding a dependent, or adjusting tax details. This autonomy over their data helps reduce errors and HR’s workload.
For example an employee who recently moved can directly update their address directly in the HRIS, without waiting for HR to handle it. Hence HRIS empowers the employees in an organization.
According to a Forbes article, 67% of the employees are willing to give additional effort at work when they are empowered. Since, HRIS empowers employees, it indirectly also contributes to an employees’ commitment to the organization.
Here’s how HRIS helps empower the employees:
- Self-service updates: Employees can update their personal information anytime, reducing delays.
- Accuracy in data: Immediate changes ensure employee records are always up-to-date.
- Faster response times: No need for employees to submit manual requests for changes.
- Convenience: Employees can manage their information from anywhere, on mobile or desktop
Check out our blog, “Employee Empowerment: A Business-Critical Requirement” to know why employee empowerment is important for business success.
3. Fostering Team Collaboration and Connection
In an increasingly remote work environment, HRIS tools help maintain connections among employees. HRIS helps employees to engage with colleagues and stay informed about key company updates. This helps in improving the team culture and keeps employees in the loop about company-wide initiatives.
For example, your company may handle cross departmental projects involving numerous personnel from different departments. An employee uses the HRIS to join cross-departmental project teams and collaborate on company initiatives.
According to an expert article published in LinkedIn, HRIS has a major role in fostering team collaboration in a remote work environment.
Here’s how HRIS improves team collaboration and connection:
- Internal communication: Employees can easily receive company updates and news.
- Team collaboration: HRIS fosters peer-to-peer communication, even in remote setups.
- Social engagement: Features like messaging and team forums keep employees connected.
- Cultural alignment: Employees stay informed about the company’s mission and values.
4. Giving Employees a Voice in Company Decisions
For companies to thrive, it’s essential that employees feel heard and valued. Organizations with strong cultures listen to their workforce, gather feedback, and respond to concerns.
An HRIS gives employees a platform to share their thoughts and feelings through surveys, feedback forms, and even AI-driven analytics. This allows employees to express their opinions, knowing that their feedback will be used to make improvements. This leads to a more engaged and supportive work environment.
For example, employees can fill feedback forms anonymously on HRIS, hence getting the chance to voice their opinions. This ongoing feedback loop helps address concerns early before they affect retention.
According to a report by SHRM, 85% of the employees feel more engaged when there is regular and transparent communication with the management. HRIS helps employees voice their concerns thus contributing to employee engagement.
Here’s how HRIS gives voice to employees in the organization:
- Anonymous feedback options: Employees can share their opinions or concerns without fear of judgment or retaliation.
- Regular surveys: HRIS platforms allow for periodic employee surveys, capturing real-time insights into employee satisfaction and morale.
- Sentiment analysis tools: AI-powered analytics track employee sentiment, identifying trends and areas for improvement.
- Suggestion boxes: Employees can submit suggestions or ideas directly to HR, contributing to continuous improvement in workplace policies.
- Engagement tracking: HRIS allows employees to see how their feedback is being used to drive company changes, fostering a culture of transparency.
5. Simplified Task Management and Clear Workflow
When HR tasks are scattered across various platforms or handled manually, it can lead to confusion and inefficiencies. Employees may struggle to keep track of important tasks such as annual reviews, benefits enrollment, or timesheet submissions.
A unified HRIS centralizes these processes, ensuring employees know exactly where to go to complete any HR-related task, making workflows smoother and less prone to errors.
With HRIS, employees can access everything they need in one system—from completing annual reviews and selecting benefits to submitting timesheets and tracking personal leave. This simplicity reduces confusion, increases compliance, and ensures that tasks are completed on time.
For example, an employee can log into the HRIS to complete their annual performance review, submit their timesheet, and enroll in benefits—all in one place.
Here’s how HRIS helps maintain a clear workflow:
- Centralized access: All tasks are in one place, reducing the need to search through multiple systems.
- Streamlined workflows: Employees can easily find and complete tasks, improving efficiency and reducing mistakes.
- Improved compliance: Automated reminders and centralized tracking ensure important tasks are completed on time.
- Reduced confusion: Employees no longer need to remember multiple platforms or methods for completing HR processes.
The right HRIS can bring immense benefits to you and your employees. However, selecting the right HRIS can be a challenge. Contact hrtech to get professional recommendations and develop your complete HR strategy.
Conclusion
HRIS systems are revolutionizing HR management, streamlining tasks, and improving employee satisfaction. They centralize data, automate processes, and provide real-time insights. Employees enjoy more autonomy and easier access to their data, enhancing their overall experience.
The hrtech marketplace helps employers find the perfect HRIS solution. It lets businesses compare features, pricing, and reviews to find the best fit.
Find the best software solutions for human resource management from hrtech! Explore the hrtech marketplace today and discover the ideal HRIS for your business!
