What is a human resources management information system?

Human resources management information systems are software platforms that help HR representatives and employees better manage and automate some of their most common human resources responsibilities, like data collection, payroll and basic accounting. The features and options available within HRIS may vary, depending on the platform you pick and the needs of your organization. 

Benefits of using HRIS

HRIS offer a number of benefits to the companies and HR representatives who use them. Below, you can find the primary advantages of integrating HRIS into your business operations.

Improve organization

Improve document organization by utilizing HRIS. Instead of storing individual documents such as personnel files in folders, simply scan and import all important personnel and business documents to HRIS for easy access and increased security. 

Ensure compliance

Most HRIS regularly update to meet federal and state regulatory standards. This ensures that your company stays in compliance with data and information regulations and standards without any needed additional research. 

Save time

Automation and digitalization improve the overall efficiency of your HR department. For example, when an employee wants to take time off, rather than supplying a hard copy form to the employee, getting the signature, tracking the dates and adjusting the employee’s pay as needed, the employee can simply ask for approval through HRIS and the rest automatically happens, saving the HR team valuable time. 

Strategic planning

With fewer data entry and tracking responsibilities to manage due to HRIS, HR representatives can focus on designing initiatives to improve employee retention, developing improved resources for employees and other human resources projects that provide value to the company. 

Improve employee experience

Most HRIS allow employees to directly interact with forms like time-off requests and to view information like health benefits. HRIS can improve the overall human resources experience for employees by making it easier to access and simpler to understand. 

Offer convenience 

Many HRIS offer convenient features like report creation and centralized access to an array of information in multiple departments. This convenience for all employees, not just those in the HR department, can improve overall productivity and employee morale. 

What HRIS do

Human resources management information systems can handle a number of different tasks and responsibilities. While there are a variety of HRIS with numerous features to consider, most perform these functions at a minimum: 

• Data organization
• Employee information management
• Pay information updating and viewing
• Benefits information and selection
• Time-off requests, approvals and denials

HRIS features

Depending on the size of your human resources department and the needs you have, some HRIS features are essential to operation. With that in mind, consider these specific features offered in some HRIS: 

Information database

One of the primary features of HRIS is managing information. At their core, good HRIS should have substantial storage and make it easy to input and pull up data. The information database aspect of HRIS reduces the need for paperwork and filing, saving space and improving document organization. 

Payroll processing

Integrating payroll processing into your HRIS can be vastly useful because all the employee data you need to manage payroll is already in the system. It also makes managing changes to employee information and pay much easier because all the necessary information and tools are in one place. 

Employee self-service

Employee self-service is an incredibly useful feature for you, your HR team and your employees at large. With employee self-service, every employee can log into your HRIS and make changes and updates to their personal information and manage other processes on their own. It saves everyone time and reduces the data entry for your HR representatives. 

Performance tracking

Performance tracking, or performance management, lets you and your management team track employees and their performance. Often, you can make notes and complete related questionnaires and forms. You can also complete formal performance reviews using some HRIS options. 

Benefits management

Many HRISs allow human resources representatives and employees themselves to manage their benefits like health care and other insurance. Using this type of system lets employees sign in and enroll in or decline benefits on their own, saving the HR team time. 

Recruitment and hiring

Some HRIS allow HR representatives or other company recruiters to digitally manage the hiring process. Integrating the recruiting process into your HRIS makes it very easy to then move potential candidates to new hires within the system. 

Onboarding

There are some HRIS that manage parts of the onboarding process for you. Generally, the program automatically prompts new hires to complete certain paperwork and input personal information. If you’re already tracking the employee through HRIS recruiting software, you can easily transfer some of their information over to the employee area.

Talent and training management

Assign and manage professional development opportunities to employees through your HRIS to cultivate raw talent and identify employees for potential promotions. Additionally, you can assign regular training to employees through HRIS at intervals, ensuring they stay up to date on important company policies.

Time management

Employees can manage their time tracking through HRIS by clocking in and out. Often, they can also submit paid time off (PTO) requests or ask for sick leave through the program as well. 

Analytics

Many HRIS enable employee data analysis so you can scrutinize overall efficiency and productivity, among other metrics. This data may prove valuable for a variety of reasons, including identifying struggling employees and those who consistently perform above company standards.

How to understand if an HRIS is right for your business

If you’re trying to decide if using HRIS is right for you and your company, consider a few factors to help you make your decision. These factors include:

• Size: The number of people you employ may impact your decision. Generally, if you have more than 25 employees, using HRIS can make information tracking much easier. 
• Cost: Consider the cost differences between keeping all your HR responsibilities in-house or outsourcing them to HRIS software. 
• Team: Think about the responsibilities your HR team has. If they don’t have enough time to complete all their tasks, HRIS can help. 
• Resources: Many HRIS integrate a multitude of tasks from payroll to recruiting. If you’re paying for multiple software programs, using a single HRIS may end up saving you money while increasing connectivity and convenience. 

Good human resources management information systems can vastly improve your HR workflow. Increase your satisfaction with this key business tool by deciding what features you want in your HRIS before selecting a program and doing a test run to ensure it meets all your HR needs.

Human resources management information systems FAQ

These are some common questions asked about human resources management information systems.

What are some common HRIS for small to medium businesses?

Several HRIS are designed to accommodate small to medium businesses. These include:

• ADP: In addition to payroll and time management software, ADP also offers HRIS for customers that automate many common HR functions. This software integrates with ADP products you already use and offers mobile solutions for employees.
• Workday: A cloud-based HRIS, Workday offers numerous helpful features, including a user-friendly interface, mobile access for employees and a synchronized database for easy data storage. Features that HR representatives appreciate include comprehensive performance reviews and enhanced analytics.
• BambooHR: This award-winning HR tool automates and centralizes all your employee data in one place. BambooHR includes tools for hiring and onboarding new talent, simplifying payroll, tracking hours worked and ensuring benefit payouts.

What are the different types of HRIS available?

There are five different types of HRIS available — operational, strategic, tactical, comprehensive and limited function. These types of HRIS do the following:

• Operational: These HRIS let HR collect and report data, including worker records, details about their jobs and information about performance. These HRIS are typically used for internal personnel performance issues like promotions and release, but they can also play a role in hiring and often help with standard HR functions.
• Strategic: These growth-driven HRIS provide the information necessary for analyzing business strategy and inform the decision-making process. Designed to aid workforce planning, strategic HRIS often focus on goal setting and help with managing data like operational budgets and market information.
• Tactical: These HRIS hone in on resource-related processes, including training, recruiting, job vacancies and compensation. Built to help with making decisions from a 40K view, tactical HRIS help companies better allocate resources, analyze job titles and develop a strong, effective workforce.
• Comprehensive: These HRIS combine features of operational, strategic and tactical HRIS for an all-purpose solution that consolidates the HR process. Made to operate like a streamlined database and platform, comprehensive HRIS focus on numerous HR tasks, including handling worker information, tracking files, job design and analysis, details on recruitment and hiring, and notation of open positions, among other functions.
• Limited function: These HRIS focus on one HR function only, making them better suited to smaller companies. Functionality depends on the HRIS you decide on, but many limited-function options focus on core systems like managing benefits or training employees.