What is Human Resource Information System (HRIS)?
A Human Resource Information Systems (HRIS) is software that provides a centralized repository of employee master data that the human resource management (HRM) group needs for completing core human resource (core HR) processes.
Some people also explain it as a software package developed to aid human resources professionals in managing data. Human resource professionals utilize these systems to facilitate workflow, improve efficiency and store and collect information. Several companies offer HRIS packages to employers. HRIS packages can be customized to the specific needs and requirements of the employer.
What are the benefits of Human Resource Information Systems (HRIS)?
Having a centralized repository for employee data removes the need to store paper files, which can be easily damaged, as well as the need to search through large paper-based employee files to find information. Depending on the type of Human Resource Information System software, it should generate various reports, provide ad hoc reporting capabilities and offer HR analytics on important metrics such as headcount and turnover. Modern HRIS software also offers visualization capabilities for employee data, such as automatically rendered organizational charts or nine-box grids.
1. One-stop shopping
One of the most frequently mentioned advantages of an HRIS is that you enter information only once for many HR-related employee tasks. And, similarly, you need to update only one place when employee information changes.
2. Integration of data
Furthermore, different parts of the system can “talk to each other” allowing more meaningful reporting and analysis capabilities, including internal evaluations and audits and preparation of data for outsiders.
Improved accuracy is likely assuming data are entered and manipulated correctly.
This feature can be an excellent timesaver for HR. Employees may enter the system to change data (for example, change their own addresses) and managers and supervisors may enter the system to enter data (for example, performance reviews) or to retrieve data without bothering HR.
5. Automated reminders
Systems can schedule events, such as performance appraisals and benefit deadlines, automatically notifying and nudging if actions have not been performed.
6. Hosting of company-related documents
The system can host such materials as employee handbooks, procedures, and safety guidelines. The materials are easily updated in one place.
7. Benefits administration
This could include enrollment, notices, changes, and reporting.
8. Recruiting management
This may include applicant tracking, management, and reporting.
What are the components of HRIS(Human Resource Information Systems)?
Human Resource Information System core offering includes a database to store employee information. HR professionals can input all personnel data into the system which can be accessed from anywhere, round the clock. Types of data that HR professionals collect in the database include compensation history, emergency contact information, and performance review. The core database can also be viewed as an online backup for paper files.
2. Time and Labour Management
Activities like time and labor management can be highly time-consuming. HRIS package allows employees to input their own hours worked and allows managers to immediately verify vacation requests, and the data is directly fed to the payroll. Time and labor management also improves the HR department’s ability to track punctuality and attendance.
3. Payroll Function
The payroll function is yet another major component of an HRIS model. HR can easily download or unload employee hours, and issue cheques or payroll deposits to employees. Salaried employees can also be paid with a substantially reduced risk of errors. The HRIS payroll software usually improves tax compliance for locations with multiple tax levels.
Some HRIS employers allow employers to establish and maintain medical benefits and retirement investments through their software. Such applications allow employers to have a one-stop shopping experience for all their human resources data management needs. Other HRIS packages facilitate medical benefits and retirement investment deductions for payroll but not the establishment of those benefits.
5. Employee Interface
Most HRIS packages allow for an employee to have limited user access. Employee users access a part of the database where they can update their personal information, review pay scales, change retirement benefit programs, update direct deposit information or download benefit election documents.
6. Recruitment and Retention
Finally, it can be said that recruitment and retention are the most important components of HRIS. It goes without saying that it is the anchor of all HR policies and systems. Finding new talent, acquiring them, keeping them engaged and finally being able to retain them is the major task of an HR person. HRs also have to ensure that employees are not only able to do their work, but they are also provided with the required training; receive proper compensation and benefits from the organization.
Types of HRIS
I. Operational HRIS
Operational HRIS is of immense help to the manager. It provides the manager with all the required data to support routine and repetitive human resource decisions
1. Worker Information Systems
2. Position Control Systems
II. Tactical HRIS
The tactical human resource information system helps largely the managers with choices that underline the allocation of resources.
1. Recruitment Information Systems
2. Pay and Benefits Information Systems
3. Employee Training and Development frameworks
III. Strategic HRIS
Strategic HRIS centers around managing labor negotiations, workforce arranging, and certain particular HR programming.
1.Workforce Planning System
2. Specific Human Resource Information System Software
IV. Complete HRIS
The automation of HRIS has brought in an incorporated database that collaborates together with the human asset records, employee documents, employee positions, stock records, organizational policies, employee monitoring, and numerous other human asset records. They are developed in a planned way that applications can easily project can valid reports from any of the human resource management segment.
HCM vs HRIS
HRIS consists of Absence Management, Self-Service Portal, Recruiting, Training and Development, Compensation Management, Personnel Tracking, Workflows, and Benefits Administration.
HCM is a step above it. What that implies is that it contains everything an HRIS consists of and has more features. These features are Employee Performance, Position Control, Global Support, Onboarding, Analytics, HR services.
Why do HRIS fail?
The successful automation of business processes can improve operational efficiency and reduce risk, allowing employers to focus on managing their business. With proper implementation and support, such a system can make life easier for everyone. Many employers do not understand the complexity of the implementation process or the commitment that it requires. This is a pivotal moment that often determines the success of the system. While some employers may be equipped to execute a proper implementation, many are not. Here are the main causes of failed system implementation
1. Lack of Time and Resources
When done correctly, this process can take at least two months, if not more, and will require the attention of those managers or HR professionals within the company who have been tasked with facilitating the implementation process. This will take time away from their typical job duties causing a strain on the business and employee stress. Employers that are unprepared to put in the time or supply these additional resources, will be unable to achieve their desired results.
2. Lack of Communication
There is much to be said for clear vendor/client communication. Not all systems are the same, therefore not all implementations will be the same. The technology vendor should be able to provide key information that can help employers prepare for a successful implementation. This is especially helpful when the employer’s needs have been clearly communicated and interpreted.
3. Poor Project Management
Implementing a new system is an involved project with quite a few moving parts. Even employers who feel prepared ahead of the implementation process can fall victim to poor project management. It is important for the employer to set realistic expectations and deadlines to be met, especially regarding business processes that are time-sensitive, like payroll.
4. Closed Mindedness
The purchase of a new HRIS implies a willingness to accept the change that comes along with it, but this is not always the case. Many employers will make their purchase wanting to benefit from having the technology, but abandon it upon realizing what it will take to properly implement and optimize the system.