HRIS Software benefits that will level up your company

HRIS is a “two-way street” in which information about employees is delivered into the organization and, conversely, back out to employees. By eliminating paper-based and manual HR-related processes, an HRIS offers seamless, streamlined, and efficient interactions between employees and the companies they work for while freeing HR professionals to perform more strategic and high-value work.

In this article, you will learn the key benefits of HRIS software: its core functionalities, how it differs from other HR solutions, and when it’s the right time to start using one in your organization.

Contents:

1. Introduction
2. Human Resources Information System
3. What exactly is an HRIS?
4. The two pillars of an HRIS
5. HRIS vs. HRMS vs. HCM — What are the Differences?
6. How do you know if you need HRIS?
7. Key considerations on choosing the best HRIS
8. The main benefits of HRIS

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1. Introduction

This new decade brings a notable shift that raises the question of how organizations remain distinctly human in a technology-driven world? The social enterprise’s power lies in the fusion of technology and humanity, calling on organizations to make bold shifts to create a new sense of purpose, potential, and perspective.

Organizations should embrace New York Times columnist Thomas L. Friedman’s perspective that humans who want to adapt in an age of acceleration must develop “dynamic stability.” The central thesis of his book ”Thank You For Being Late: An Optimist’s Guide to Thriving in the Age of Accelerations” strengthens these facts. The author states that the way we use technology will only become more interconnected with how we live our lives as innovation advances faster — and we need to be prepared for the storm. Rather than building a “wall against the hurricane,”

Friedman encourages leaders to “build an eye that moves with the storm, draws energy from it, but creates a platform of dynamic stability within it. That is the healthy community where people can feel connected, protected, and respected.”

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HR departments within the leading organizations know that the discussion should have never been about people vs. technology. Organizations can overcome the instinct of treating humans and machines on parallel paths. The alternative is here: as humans, we shall embrace technology nurturing growth and innovation in the weeks, months, and years to come. The crisis caused by COVID-19 served as an acceleration of adopting digital solutions since there was a massive shift from offline to online.

In a recent analysis of the impact epidemy, BCG analysts share that, with the right technical support and a few simple rules, teams can keep up their agile working models without being in the same room.

The human resources department within any organization is considered to be highly critical for the entire organization. Its many functions serve as a supportive background for the company by providing everything from skilled and talented labor to management training services, employee empowerment opportunities, and more. Since labor is the single largest expense for most organizations, human resources help companies derive the greatest value from this important asset.

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2. Human Resources Information System

Not so long ago, when all HR documents were stored on paper, going into the HR office was like entering an ancient library: a silent space where valuable texts containing the secrets of the employee universe were stored. Nowadays, going into an HR office is a much more welcoming experience. There are no wall-to-wall cabinets up to the ceiling, and the activity and offices are digitized.

HR work is more complex and involved today than it ever has been. Workforce management evolved, and the roles of HR differ from recruiting and hiring to training, evaluations, and so much more. The importance and workforce behind these tasks make it critical for human resources professionals to have HR management software to manage HR information more efficiently.

So, the age of paper forms and file folders is a thing of the past regarding employee data. It’s time to welcome a new era of insights powered by Human Resources Information Systems (HRIS).

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3. What exactly is an HRIS, and what is its purpose?

HRIS, which is also known as a human resource information system or human resource management system (HRMS), is an intersection of human resources and information technology through HR software. Such software allows HR activities and processes to occur electronically.

To put it another way, an HRIS may be viewed as a way, through software, for all businesses, including medium and small, to take care of several activities, including those related to HR reporting, leave management, employee self-service, and employee directory. An HRIS allows a company to plan its HR costs more effectively, manage them, and control them without allocating too many resources.

In most situations, an HRIS will also lead to increases in efficiency when making decisions in HR. The decisions made should also increase in quality — and as a result, the productivity of both employees and managers should increase and become more effective.

There are two main parts of HRIS software that help HR teams with their daily and long term goals:

• I. A system of records: The first part is storage. While it may sound simple, the central repository of employee information, records, and other data is the first step to properly managing a workforce. Also, it gives you access to the information you need to make crucial decisions regarding payroll, reporting, and more. HRIS provides data-driven insights for better decision-making.
• II. Process automation: The second part is the actual capability of carrying out HR tasks and processes. Using advanced technology to automate and streamline your current manual processes, you can carry out some impossible activities to do manually or to any scale.

TIP
Learn more about the automations offered by the HR System.

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4. The pillars of HRIS

HRIS solutions constitute two pillars that create the foundation for managing people and policies to support overall organizational effectiveness.

• Organizational design: From a structural perspective, HRIS includes roles, functions, and reporting hierarchies. By defining the organizational structure, HRIS provides accountability and a pathway for operational functionality and consistency. The right HRIS helps you address business challenges by building a workforce with the right people with the right skills, working in suitable functions, and under the proper structure to meet your strategic goals.
• Employee data management: The HRIS provides a comprehensive view of every employee, including name, address, date of hire, time-off, benefit selections, and much more. The HRIS enables automated and standardized record keeping, reporting, and self-service functionality. Using a digital system of records can lead to more accurate and up-to-date information management that drives greater efficiency while providing convenience and ease of use for employees.

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5. HRIS vs. HRMS vs. HCM — What are the Differences?

The terms HRIS, human resources management system (HRMS), and human capital management (HCM) are often used interchangeably. However, there can be subtle differences between the three, depending on which features a company chooses to enable.

• HRIS originally referred to a basic system of keeping administrative employee records. HRIS can incorporate talent acquisition, recruitment, and ongoing employee data management and processing as HR functions become more complex.
• HRMS came into use as organizations began to use increasingly sophisticated software and automated tasks to perform their HR functions — though it is still used interchangeably with HRIS. Today’s HRIS may include payroll management and time and labor.
• HCM refers to an umbrella solution that covers every aspect of the HR function and workforce management. Additional functionality includes advanced talent management tasks such as performance management, succession planning, compensation planning, strategic workforce planning, and other HR planning activities. HCM covers the range of HR functions, whether they are data-based or strategic.

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6. How do you know if you need HRIS in your company?

What are the signs telling you now it is time to invest in your business’s HRIS platform? There are small cracks on the HR activity’s surface, and they can only become deeper and more comprehensive if you continue to ignore them. Here is a list of signs letting you know that it’s time to take your HR activity to the next level:

• Spreadsheets are getting too long and confusing — too many HR, and payroll professionals get into the habit of using spreadsheets for everything. While it’s very organized, over time, the spreadsheets’ data becomes overly complicated, outdated, and there is always a risk of data breaches. Transitioning to a good HRIS platform is easy. Usually, the support team will help with account setup, data import.

You might consider to continue reading our analysis of working with spreadsheets versus HR software.

• You are losing out on great candidates — every organization is fighting a talent war, with many skill sets lacking and unemployment rates at historic lows. Job seekers are interviewing for multiple companies at once. Losing talent means that time is critical when dealing with candidates. Drag things out using an outdated hiring system, and the best candidates will be taken by more efficiently run companies.
• Tasks are getting duplicated — there is nothing quite as annoying as performing the same functions using multiple systems. Often, HR professionals find themselves having to repeat similar tasks and complete manual transfers of data from one system to another. Manual work is inefficient and a sure sign that the company is ready for a new HR platform.
• None of your systems “talk” to each other — in a multitasking environment like human resources, there are various processes that require information and solution one from another. Tracking employee leaves ob absence data is essential for payroll, scheduling and timekeeping, performance management, and other aspects of on-the-job success. If none of your current systems sync with another, it is time for a new HR platform with end-to-end capabilities.
• Reporting needs to be customized — most of the HR work today is with data. Then why should you continue working with systems that include outdated reporting systems? A new HR platform can provide all the custom reporting that a business needs to make more significant people decisions while keeping things simplified.

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7. Critical considerations on choosing the best HRIS

The selection of an HRIS is stressful, as so many options exist in the software market. Picking the options that are best for your company is challenging. To meet your company’s specific needs, you should choose a customizable HRIS solution and then adapt it to your particular needs.

These are some of the factors to be considered when selecting an HRIS:

• Remember that even if your company is only a few people today, it may have twice or even 10 times that many employees in the future, so pick a system that can grow with your business.
• Another critical factor that you must consider is that many HRIS can accomplish the core automation needs. In these cases, you will want to make sure that the components of any add-ons or other systems work together flawlessly. Again, don’t take the salesperson’s word about the systems working together. Please do your research to ascertain that they do.
• Check to see if your future HRIS is easy to set up, and it doesn’t require special training for your employees, and it’s updating automatically.
• You should be able to book a free demo before deciding upon the right system.
• Ask the salesperson if the price is differentiated based on the number of employees. LeaveBoard, for example, is free to use for a maximum of 9 users.
• Verify if the system has ongoing stellar support whenever your employees need it.

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8. What are the main benefits of HRIS?

There are many benefits to investing in superior HR software. They may vary depending on the system you opt for and the modules you choose, but here are some of the main benefits.

Enhanced team autonomy
How much time do you spend fielding employee inquiries throughout the day? Odds are it’s more time than you’d like. An HRIS tracks all your company policies, benefits information, and company resources in one easy-to-access location, so employees know exactly where to find the answers to all of their questions. Employees can connect with co-workers, request time off. And their roles and permissions are well personalized to access only the relevant data with accounts using the HR web app.

Increased efficiency
Even if you opt for a simple central HRIS or more basic software, you’ll be able to streamline a wide variety of processes and make your everyday activities much more efficient. Automating workflows can help you save massive amounts of time and often carry out these processes more accurately, reducing human error.

Achieve the impossible
As well as helping with your current HR activities, an HRIS system can help you achieve other capabilities that would otherwise be impossible without superior technology. Using HR software, you will uprise your management, leave tracking, and cut several repetitive processes, plus much more.

Better decision making
As well as providing storage and easy access to all the employee information and data you collect, managers can use HRIS software to track ongoing performance data and much more. You can then measure and compare all this information to go beyond basic metrics like retention rate. These data-driven insights can help you make better decisions, from budget allocation to delivering a better work experience based on your employees’ wants. Effective decision-making ultimately means helping your employees and your business become more productive to help achieve goals.

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Boost employee experience
Speaking about employee experience, delivering a superior one could give you the competitive edge your company needs to succeed. By tracking your employees better, from their goals and interests to performance and learning, you can help identify problems or areas that need improvement and work to make them better as soon as possible. Self-service ultimately makes your business much more attractive to employees, helping you secure the best talent during the recruitment and keep them for long-term success and cost savings.

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Wrap up

With HRIS solutions, all types of organizations will benefit. All parts of a company need to work with the human resources department more efficiently and take advantage of technology innovations. When the HR department tasks are automated, the entire organization finds that it fulfills duties much quicker.

HRIS not only helps HR departments specifically, but businesses overall reach their goals. When HRIS software gets utilized, companies and employees alike benefit.

An HRIS frees human resources professionals like you from day-to-day worries and helps you play a more strategic role in your organization. Start managing your revenue, increasing engagement, creating a better organizational culture, and more with the right HR software at your side.

And if you’re planning to use a simple HRIS to get your workforce management to new levels, check out LeaveBoard.