The need for Human Resource information systems in today’s dynamic work environment can hardly be overstated. HRIS helps consume, store, process, and act on employee information, along with automating the workflows surrounding it. This article explains the various key components of an HRIS and the different ways it can transform the employee experience.
Human Resource Information Systems (HRIS) were among the earliest commercial software solutions developed during the 1980s.
HR was (and remains) one of the most administratively intensive departments in any organization. Employees in human resources are not only overloaded with documentation and recordkeeping, but they are also custodians of the most valuable and sensitive data on their employees and applicants.
Contemporary HRIS solutions can automate processes, integrate feedback, and instantaneously modify reporting structures in response to adjustments in company policies or regulatory compliance.
A human resource information system (HRIS) can be described as software, or an online solution used for data entry, data monitoring, and data administration of a company's human resources activities.
It is a searchable, actionable database that facilitates running all HR systems hosted on the organization's server, in the cloud, or by a third-party provider.
Under its umbrella exists an array of systems. It encompasses every aspect of employee database administration and directory management. It also oversees application monitoring, perks, payroll processes, and many other functions.
All HR Information Systems share the attribute of having been built as transactional systems. They are platforms that register the various transactions of a business. When new hires join a company, that is also a transaction. A new employee account is created, and the individual is deemed 'active.' If a person departs the organization a month later, a fresh transaction is entered, and the individual's status is changed to 'terminated.'
In order to analyze data and garner insights, it is essential to introduce a new layer over conventional HR Information Systems – specifically designed for HR analytics. This is what new-age Human Capital Management solutions like Darwinbox achieve, going beyond transactional records alone.
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HR information systems combine diverse HR functions into a single system that shares information and generates reports across the platform. Generally, an employee’s data is entered as part of the induction process and then relocated or distributed to payroll, benefits, time, and attendance.
This information may be revised and shared again in the future, as is commonplace when workers earn a performance-based promotion or incentive.
Essentially, an HRIS functions as a "two-way street" through which data about workers flows both into and out of the organization.
An HRIS enables simpler, optimized, and efficient interactions between individuals and their employers by eliminating the need for paper-based or manual HR activities. This also allows human resources specialists to carry out more strategic and valuable work.
To aid this process, Human Resource Information Systems are built on three pillars:
HRIS consists of roles, processes, and reporting hierarchies from a structural standpoint. By delineating the organizational structure, the HRIS provides a clear path to accountability and efficient operations. To achieve your strategic goals, you can build a workforce composed of the right employees with the right talents, performing the right functions and working under the right organizational structure. This approach is also known as strategic workforce planning, for which there is a need for an HRIS for the organization.
Similar to consumer relationship management, but in an employer-employee context, the HRIS offers an all-encompassing view of every staff member.
This includes the employee's identity, place of residence, year of employment, compensation, and benefit preferences. You will be more prepared to interact with your employees, aid them in developing career plans, pinpoint appropriate training, and enhance their performance with the right data.
The HRIS supports automated and standardized recordkeeping, reporting, and self-service capabilities. This can lead to more precise and up-to-date data which promotes greater efficiency while enhancing employee usability and ease of access. This is how it helps improve employee experiences with data-related processes.
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There are various HRIS software and system categories, and you can choose one depending on the exact need for HRIS in your organization. An HRIS includes all data-related functions for human resources, and offers several features. This consists of the following:
Maintaining accurate employee information is critical. With so many different locations where this data can be recorded (spreadsheets, individualized documents, etc.), it can be hard to keep track of everything. HRIS software can be helpful in this instance as well.
Storing all employee information in a single database can ensure that it is always updated and accurate. In addition, the software is capable of communicating with other ancillary functions or integrations, making an HR professional's life much simpler.
An HRIS may help with the management of employee attendance and leaves. Organizations can efficiently monitor employee attendance and plan modifications or breaks with an HRIS. This data can then be exported directly into the payroll application, saving time and resources.
Companies can automate regulatory compliance and reporting with HR information systems. By monitoring personnel information, hours, incentives, and various other data elements, HRIS can assist in identifying compliance issues. Consequently, you can take quick and efficient corrective action to guarantee that the company fulfills all regulatory criteria.
Not all individuals can always find the space, time, or opportunity to work on laptops or even settle down into a workstation or assigned workspace. Several HRIS providers include mobile capabilities that help HR practitioners to keep working on the go.
Additionally, your HRIS won't be the only software in your organization's tech infrastructure. Therefore, you must ensure that it integrates seamlessly with all other tools. A well-designed HRIS perfectly integrates with your existing technology framework.
Payroll is among the most critical HR functions. A streamlined human resource information system enables easy downloading and uploading of employee hours or attendance data. This makes number crunching much easier, and employee remuneration can be made with zero errors or delays. This also reduces other associated challenges, by eliminating human intervention. Moreover, HRIS software providers also support tax compliance, particularly for organizations with multiple taxation layers.
Employee self-service is a move towards establishing a work culture in which individuals have greater operational autonomy. The HRIS interface enables team members to update their personal data, review their pay schedules, revise their retirement benefit programs, edit their direct deposit information, and access their benefits selection paperwork. Typically, it is also accessible as a mobile app.
In addition to the six components of information systems discussed, HR information systems have additional features that help HR staff:
As you can see, a human resource information system is helpful in nearly every aspect of the employee experience.
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The need for HRIS arises from the fact that it can help automate and streamline several time-consuming and resource-intensive day-to-day tasks. HR information systems may also reduce administrative expenses by eliminating manual processes, boosting accuracy and productivity, and improving data quality.
It can also provide HR leaders with more comprehensive insights, allowing them to make better-informed decisions while promoting an employee-centric business strategy. Similarly, software users can measure and analyze employee engagement, efficiency, and various other important metrics more precisely.
HR information systems offer an organized, efficient, and centralized repository for managing staff records, perks, and payroll. It also helps to monitor employee performance and attendance.
The need for HRIS is now widely recognized because it helps in:
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By now, we have understood that one of the key needs for HRIS is that it makes life easier for HR leaders. And, it also engages employees and provides them with a better experience. How exactly does it achieve this?
Why is a human resource information system essential for positive employee experiences? Here are the top reasons:
When HRIS is applied to recruitment, applicants may feel more connected right from the outset. They can submit an application and view its status without requiring manual intervention or phone calls. This not only helps individuals feel empowered, but it can also provide managers with insights into how candidates behave when given more autonomy.
The benefits of HRIS are seen across the employee lifecycle. For instance, having an HRIS means that you have a centralized data store to keep and analyze the results from exit interviews.
Modern HRIS software lets employees and senior management speak freely and interact with one another. This allows employees to express their thoughts more frequently, make suggestions and share feedback. These open channels of communication can help individuals participate more directly and understand that their opinions matter.
Performance management is built into most modern human resource information systems. It helps in defining precise deadlines, a well-defined reward and recognition system, and an overview of progress.
Employees can better fully understand how they can contribute to the business when the organization's objectives are unambiguously highlighted in the HRIS software. The software will also remind employees of performance goals, making it easy to stay focused. An HRIS may minimize the likelihood of performance review conflicts by basing decisions purely on data.
By using an HRIS, employees can review their unused leave balances and personal data. In addition, they can request time off and amend details like their home address.
Because the majority of HRIS systems are hosted on the cloud, people can access them from their mobile devices or laptops. This allows them to finish administrative tasks during usual downtimes, like travel or en route to a meeting.
It also means staff members working remotely or traveling on business may file expenses, ask for time off, or refresh their banking information, no matter their location. As a result, the overall employee experience improves for every member of the workforce, underscoring the need for HRIS in remote and hybrid work scenarios.
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An HRIS helps HR leaders and administrators monitor employee output. Consequently, they are also better able to recognize employees for their achievements. Simply saying "Well done!" can help workers feel more appreciated. Managers can also discuss incentives or rewards for empowered actions and outstanding achievements. Using self-service, employees can choose from a bouquet of reward options, further elevating their experience.
One of the immediate repercussions of globalization on businesses is that today's workers demand simplicity, speed, and efficiency. Organizational management, recruiting, office administration, time management, and talent management are all handled by an HRIS. It also functions as an HR portal that provides access from any interface at any point in time.
This tool's versatility and usability offer employees a positive outlook on the duties they must carry out and increase their productivity.
Let’s say a hybrid working employee wants to switch their in-office days from Tuesday to Thursday for a couple of weeks, inputting, approving, reconciling, and adjusting this data would take a long time without an HRIS. A human resource information system (particularly when hosted on the cloud) makes these modifications in a matter of hours, also updating schedules so that team productivity is not compromised.
Life as an administrator can feel challenging, but with an HRIS, tasksthat would otherwise be repetitive or easily overlooked are streamlined.
Using an HRIS, leave requests, notifications of unanticipated absences, and training progression can all be monitored and recorded. Automatic alerts can serve as an advisory to the manager or staff member to complete required duties such as submitting a travel and expense form after a business trip.
HR information systems may improve and expedite tasks like pay slips and invoicing. There is no requirement to look for and save files in new locations. When freed from administrative duties, HR professionals can focus on more engaging work or quality family time.
An HRIS can significantly enhance operational transparency, which can promote employee engagement.
It enables the centralized posting of company strategies, regulations, developments, or notifications. This provides employees with quick access to the most current versions of these documents. Using an HRIS aids in awareness of societal changes within an organization. This may involve HR departments adopting more inclusive hiring practices or fostering greater workplace diversity.
This increased accessibility can be advantageous in several ways. First, it tells employees that the organization has nothing to hide. It may also limit inaccuracies and disinformation, gossip, and office politics, which can be terrible for employee experiences.
Instead, employees can quickly validate their points of view by referencing the applicable guideline or amendments in the HRIS.
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There is an increasing need for HRIS automation because the two-way data flow system can trigger actions such as sending a file for approval, sending a reminder, updating data, and so on.
Here are some of the considerations to remember as you meet the increasing need for HRIS automation in your company:
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The need for HRIS or human resource information systems is clear. Companies rely on data for HR processes more than ever before, and these software tools can help you streamline, automate, and improve how you work. As an HR leader, investing in the right HRIS can garner significant ROI.
The returns from HR information systems increase when you have a unified, end-to-end system. Ask for a Darwinbox demo to know how we can help.