HRIS: The essential tool for HR management

HRIS systems help manage and automate payroll, timekeeping, and benefits administration, enhancing overall HR efficiency. Modern cloud-based HRIS solutions offer increased data storage, security, and seamless integration with other HR applications.

By Brad Nakase, Attorney

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Employers can better manage and automate essential HR functions, such as payroll, timekeeping, and benefits administration, with the use of an HRIS, or HR information system.

Overview of the Human resources information system (HRIS)

Among the earliest business software solutions created in the 1980s were human resources information systems, or HRIS systems. How come? In any organization, HR used to be one of the departments with the highest administrative workloads. Employees in the HR department are not only faced with a mountain of documentation and keeping records, but they also have the responsibility of protecting a portion of the most sensitive and valuable data about their applicants and employees.

Since then, technology has undoubtedly advanced significantly. In response to modifications in business regulations or compliance with regulations, contemporary HRIS systems can automate processes, incorporate input, and modify reporting frameworks in an instantaneous fashion. Current HRIS systems also offer flexible functionality and consumer-grade user interfaces, making them as effective and easy to use as they are robust and nimble.

The cloud-based delivery of the finest HRIS software offers even additional advantages, such as increased data storage, enhanced security, and seamless connection with other apps like applicant tracking, payroll, and other types of HR systems.

HRIS Definition

HRIS assists businesses in managing and automating essential HR procedures. These human resources software programs facilitate payroll, time & attendance, benefits administration, and other processes. They also store employee data, including remuneration, personal, and demographic details.

Comparing HRIS, HRMS, HCM, and HXM

HCM (Human capital management) is an umbrella term that includes the procedures, guidelines, tools, and processes that an organization utilizes to manage its employees from the point of employment until retirement. HRIS software is part of an HCM suite, which is also known as HRMS (Human resources management system).

To facilitate more quantitative and linear core HR procedures, such as processing payroll or tracking attendance, HRIS employs a workforce database. On the other hand, HRMS designates a broader software system that includes an HRIS along with additional sophisticated and qualitative features related to managing talent.

Employee timekeeping is one process that an HRIS can help streamline and automate. When this information is incorporated into the HRMS system, it can be analyzed to increase planning and productivity, which can then help with more effective automating of tasks in the HRIS.

Since it illustrates the change in culture from seeing employees as resources to developing a model that centers HR operations around the hire-to-retire expertise, the word HXM, or “human experience management,” has been additionally added to the illustration above.

It’s not as difficult as it initially may seem to determine which of the aforementioned software options is ideal for you. It only has to be a case of examining your company’s current state and desired future state with clarity. Selecting human resources solutions that will support you now and grow with you in the future comes next.

HRIS: What Do They Do?

Many HR interactions and processes are supported by the top cloud-based HRIS systems. The technology enables the intelligent automation of various business processes, such as:

1. Administration of benefits

  • Benefits administration that is automated
  • Employees can access, modify, and gain information about benefits through self-serve features.

2. Time & Attendance

  • Proper handling of staff absences
  • Employer holidays, timetables, and premiums can be determined using time profiles, which will boost administrative efficiency.
  • Time and payment calculations that are automated based on employee profiles

3. Embedded localization

  • Automatic regulatory and legal adjustments allow you to adjust to the unique business procedures and rules of each country.
  • Detailed list of each country’s localization and globalization requirements

4. Self-services for employees

  • Features for self-service that boost worker productivity
  • Unified platform for HR data integration
  • Key HR data that is trackable according to national regulations
  • Give workers a customized profile page on which they can ask for time off, handle and track benefits, and more.

5. Structures of organizations

  • Analytics for instantaneous workforce insight
  • Determine the essential roles and promptly adjust the workforce to fill in any gaps.
  • See organizational structures in action.

Cloud-based HRIS system advantages

Apart from the standard features of a contemporary HRIS, cloud-based systems facilitate easier integration with your current systems. They are more easily expanded with fresh ideas and security enhancements since they’re scalable.

The following are a handful of the typical advantages of an embedded cloud-based HRIS system:

  • Expedites and improves the accuracy of HR administration. It is imperative to take great care while managing individuals’ livelihoods. HRIS software offers HR professionals a way to eliminate the inefficiencies and delays caused by manual, paper-based systems by automating and streamlining administrative activities.
  • Enhances workplace satisfaction for employees. Companies occasionally overlook how crucial it is for their employees to be enabled to view the state of their payments, perks, and vacation time. Using HRIS solutions saves employees the trouble and time necessary to go via the Human Resources department by enabling them to view their own data directly, generate reports, and submit requests.
  • Increases effectiveness. Numerous self-service options provided by HRIS solutions significantly reduce the requirement for emails, manual forms, and authorization procedures. You can automate and manage a variety of tasks in an instantaneous fashion, including scheduling, processes, time-off requests, and more.
  • Encourages adherence to regulations. Businesses must make sure they’re in compliance with international employment and labor laws in light of the growing trend of remote work, increased sensitivity, and legal action. In addition to supporting their workforces, cloud HRIS serves to guarantee that all HR operations stay inside legal bounds.
  • Keeps everything safe. Some of your company’s most sensitive and valuable information is contained in HR files. This includes information about the health and finances of your staff members. There used to be a constant risk of invasion when this information was kept on laptops or non-secured databases. Modern-built HRIS systems come with sophisticated security measures embedded to reduce cybersecurity threats.

How does integrating cloud HRIS with core HR procedures help?

HRIS systems assist in the centralization and simplification of HR administration and operations, and many other essential tasks, like hiring, planning, and training, are carried out concurrently. Furthermore, it is not necessary to be an expert in human resources to recognize the benefits of centralizing and unifying these crucial tasks. However, businesses that are utilizing decentralized HR software solutions and outdated systems must resort to manual searches to find resources and data through silos inside their own companies.

The finest cloud HRIS solutions are designed to integrate with your primary ERP, not just enable it. An example of an ERP system in the cloud is one that integrates numerous different company processes and handles a broad variety of daily operations. ERPs offer one point of information and dependable data integrity by combining data from several business units. You thus get the very best of the two worlds when your fundamental HR procedures and HRIS are combined with the efficiency and analytical power of a contemporary AI-powered ERP.

HRIS instances in use

A few years back, HRIS systems were mostly utilized by the biggest companies. However, when integrated systems powered by the cloud gain traction, smaller and developing companies could more easily make use of the advantages and efficiencies of HRIS.

The following list of businesses demonstrates how well HRIS solutions have been used to optimize HR procedures.

  • For more than 20 years, Growmark has provided farming enterprises in the US and Canada with services; the company employs a diversified and geographically distributed workforce. The complete employee lifecycle has been integrated and automated through the usage of HRIS services. Consequently, Growmark is able to manage effective human resources procedures and draw in and develop the talent required to support its clients’ success.
  • With its enormous product assortment and affordable pricing, Kmart Group transformed shopping in New Zealand, Australia, and Asia. The company resorted to HRIS offerings when it wanted to redesign its human resources system in order to revolutionize the next phase of work spanning over five hundred Kmart, Catch, and Target stores while transforming employee experiences.
  • The leading provider of methacrylate compounds to maintain industry motion is Röhm GmbH. As their company expanded, they came to see that their changing staff required greater empowerment and support. To modernize HR and make the move easier for everyone, Röhm selected HRIS products.

Check out HRIS software right now

Contemporary companies seek a single, worldwide core Human resource solution that enables real-time analysis of data and automation, provides consumer-grade experiences, and is unified. HRIS software must globalize with them by offering thorough localization and cross-national compliance as employees become more dispersed. Additionally, businesses need the flexibility and ease of use that come with a wide variety of highly relevant and potent pre-builds as their business models change and grow. These pre-builds enable them to swiftly and reliably adopt new procedures and applications.

Meaning of HRIS and frequently asked questions

1. Describe an HRIS system

When it comes to payroll processing, employee self-service, benefits administration, analytics and reporting, and attendance & time management, an HRIS system aids businesses in managing and automating these crucial HR procedures.

2. What is meant by the acronym HRIS?

HR Information System is referred to as HRIS. HR procedures are streamlined, workflows are automated, and personnel data is managed by organizations using an HRIS.

3. When is it appropriate to put an HRIS into practice?

Growing companies as well as ones with a mid to big workforce, particularly those spread over several states, nations, or regions, can benefit greatly from an HRIS’s automated workflows and centralized, real-time data architecture.

An organization can simply adhere to local employment and data protection laws when using an HRIS. Global HR experts, managers, and staff may easily access information with the help of a localized, regional user interface.

4. Who gains by using an HRIS?

An organization’s managers, HR staff, and all employees gain from having an HRIS. The implementation of automated procedures and centralized, real-time data generates efficiencies that enhance productivity throughout the entire organization.

5. Which business issues is an HRIS able to resolve?

Numerous enduring business issues can be resolved by the system, such as:

  • Human, labor-intensive operations for employees and HR staff
  • Inconsistency across platforms with separate data stores
  • Outdated and stale employee and HR data
  • HR strategy and corporate strategy are not entirely aligned.
  • Uneven regulatory enforcement of government and company employment laws

6. What needs to be taken into account prior to implementing an HRIS?

An HRIS has to be flexible enough to change with the business and be resilient. Other factors to take into account are:

  • Managing the data migration from old systems to the Human Resources Information System in an appropriate manner
  • HRIS scalability as the business expands
  • Adherence to local, national, and international regulatory standards
  • Quick adoption and well-trained staff to fully utilize the HRIS once it is operational

7. What is the difference between HRIS, HRMS, and HCM?

Though they are sometimes used synonymously, human resources information systems (HRIS), human resources management systems (HRMS), and human capital management (HCM) differ significantly in a few important ways. An HRMS (human resource management system) has these features along with talent management, including training, growth, and planning for succession, while HRIS performs essential HR procedures. More widely, the term “human capital management,” or “HCM,” refers to a wide range of procedures and strategies used to oversee an organization’s personnel. HRMS and HCMS systems are terminologies that are frequently used synonymously.

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