HRIS (HUMAN RESOURCE
INFORMATION SYSTEM)
◦ A human resource information system (HRIS) is software that provides a
centralised repository of employee master data that the human
resource management (HRM) group needs for completing core human
resource (core HR) processes.
◦ An HRIS stores, processes and manages employee data, such as names,
addresses, national IDs or Social Security numbers, visa or work permit
information, and information about dependents. It typically also
provides HR functions such as recruiting, applicant tracking, time and
attendance management, performance appraisals and benefits
administration. It may also feature employee self-service functions, and
perhaps even accounting functions.
Benefits of HRIS
◦ An HRIS enables the HR department to spend less time on clerical tasks, helps
ensure the accuracy of employee data and can enable employees to take a
greater role in the management of their information.
◦ Having a centralised 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 HRIS 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 visualisation
capabilities for employee data, such as automatically rendered organisational
charts or nine-box grids.
◦ When an HRIS has employee or manager self-service, the process
for making employee master data or organisational changes
becomes more efficient and uses less time than with paper-based
requests. Approval workflows enable changes to be approved or
rejected, with the necessary individuals automatically notified.
An HRIS might also offer mobile capabilities that extend self-
service and provide additional flexibility for remote workers.
HRIS Security and Privacy
◦ An HRIS also helps secure employee data and keep information private.
When using paper forms or spreadsheets, information can easily be
accessed by people who may not have the authority to access it. An HRIS
can secure information so that it can only be accessed by the individuals
that need to have access to it.
◦ Data security and privacy are important factors when handling sensitive
personal information, especially in countries like Germany or France,
where works councils have a strong role in protecting employee data. With
the exception of lock and key, protecting paper records can be extremely
difficult.
Types of HRIS Software
◦ A variety of HRIS systems are available and aimed at different types of customers,
ranging from small and medium-sized businesses (SMBs) all the way up to large
enterprises. Usually, the difference is in the range and depth of features for each
process area.
◦ While most HRIS systems cover a large portion of the processes described above,
many HRIS systems aimed at small to medium-sized enterprises (SMEs) have less
depth of functionality in each feature than those aimed at large enterprises.
◦ In this way, the HRIS market is similar to the automobile market. All automobiles
will get a driver from A to B, but major differences exist in the quality and
amenities offered.
HRIS Functions
As an HR tool, an HRIS usually features modules to handle the following
tasks:
◦ Master data management (MDM)
◦ Organisational management, such as positions and departments
◦ Employee and manager self-services
◦ Absence and leave management
◦ Benefits administration
◦ Workflows
◦ Performance appraisals
◦ Recruiting and applicant tracking
◦ Compensation management
◦ Training tracking (as opposed to a learning management system
[LMS]) and organisational development
◦ Reporting and basic analytics
◦ An HRIS provides a comprehensive set of human resource management
functionalities to serve most HR needs. Without this, unsecured or paper-
based documents or spreadsheets are required to store data. Manual data
entry can cause errors and manual cross-checking of documents and
spreadsheets can be time-consuming and sometimes confusing, especially
with a lack of standardization in how data is captured and stored.
◦ Even when a specific system is purchased to cover a process -- such
as benefits administration -- it may mean manually entering employee
data changes to keep the system up to date. If multiple systems are
used, data re-entry may be required for each system, or users may
need to export data from one system, change it and then import it into
another system.
Importance of HRIS
◦ An HRIS can play a critical role in enabling compliance -- for example, to store
regulatory data for a country, such as U.S. equal employment opportunity
information or U.K. Working Time opt-out -- and can offer a means of gaining
insight into the workforce. Both are important and, in some industries, are
interwoven.
◦ In addition, downstream integration of systems that require employee data,
such as payroll or LMS, and the immense time savings from having integrated
applications means an HRIS can serve a critical role, since data entry in
multiple systems -- a reality for organisations without an HRIS -- can lead to
costly errors or reduced employee engagement.