HRIS Software – Meaning, Advantages, Types & Difference

Organisations are always seeking ways to improve productivity and streamline business processes. The one area in which technology has been handy is Human Resources. There is much HRIS replacing traditional manual processes with automated systems, in order to make the workforce better manageable. Those features of HRIS include time tracking, payroll management, benefit management, employee self-service, and various data analysis tools that help HR professionals to better and more efficiently manage their workforces. With technology, organisational cost can be significantly reduced, productivity will be improved, and strategic goals will be achieved so much easier. Let us learn more about HRIS, its meaning, its benefits, and types.

What is HRIS?

Human Resources Information System (HRIS) refers to the software application managing employee data, processes, and procedures.

What is an HRIS? It basically offers a business the opportunity to streamline their HR operations and, in large numbers, automate many tasks that had to be performed manually. The system may provide for employee storage and tracking with regard to attendance, payroll, manager evaluations, and incident records. Authorised personnel can easily access such data in order to take responsible decisions on staffing, resource allocation, and other critical HR functions. A good HRIS should thus automate tasks such as calculating withholding tax, tracking time-off balances, and notifying employees and managers about updates and required actions. This helps reduce errors, improves efficiency, and frees up time for HR staff to be positioned to work on more strategic activities.

HRIS vs HRMS vs HCM

• HRIS is a software that manages and organises employee data within an organization. Initially, it kept only the most basic records of employees comprising personal information, job titles, and compensation details. However, with increasing complexity in functions related to HR, HRIS has evolved to include talent acquisition, recruitment processes, performance management, benefits administration, and continuing data about employees.
• An HRMS is a computerized program that helps companies manage their human resource business. Computerized programs that are called HRIS can be used to track employee information, manage benefits, help with performance reviews, and more. Other types of an HRMS could include tools for tracking employee time and attendance, payroll management, and allowing employees access to certain types of information that are relevant to them.
• HCM stands for software which businesses use for the management of their workforce and HR functions. HCM includes performance management, succession planning, compensation planning, and strategic workforce planning. It covers all aspects of HR from data-based, transactional, and strategic work. HCM software makes HR processes more efficient and helps businesses manage their workforce effectively.

Advantages of HRIS

The advantages of an HRIS are as follows:

1. Saves Time and Reduces Cost: An HRIS is designed to facilitate HR professionals to streamline and automate various employee record management tasks. It can save time and money, such that staff will focus on strategic initiatives rather than administrative work and reduce employee data errors. Companies can then leverage the opportunity to automate data entry, record keeping, and reporting via an HRIS, thus freeing up HR staff for talent management, employee engagement, and organizational development.
2. Increases Employee Engagement: HRIS software helps businesses to manage and centralise all those HR-related activities like the employee’s data, payroll, time tracking, attendance, and benefits. The software may also give the employees access to the records. This creates a culture of trust and accountability, boosts employee morale, and increases job satisfaction. It also helps employees manage benefits and career development, such as online enrollment, self-service portals, training programs, performance reviews, goal setting, and succession planning.
3. Improves Open Enrollment Benefits: During open enrollment season, an HRIS can benefit employers and employees. An HRIS keeps track of employees’ benefits and eligibility status. Another benefit of using an HRIS during open enrollment season is that it can automate reminders. This ensures that employees are aware of the enrollment deadline, which can help prevent missed deadlines and ensure everyone is enrolled in the right plan. Lastly, an HRIS can also pass along information packets. This can help employees decide on health care coverage. 
4. Improves Collaboration: An HRIS is crucial for managing data about the employees within an organization. One of the major advantages of using an HRIS is that it can serve as a location where an organizational management team and an individual worker can place all of his or her records and information under one source. With an HRIS, authorized personnel can access employee data efficiently and easily, streamlining communication between departments. Managers and team members have access to information that would allow them to work more efficient and make better decisions. Additionally, many HRIS solutions have additional features supporting collaboration, such as document sharing and group chat functionality. 
5. Improves Training Capabilities: An HRIS software system can help organizations manage their HR functions. Additionally, it can improve employee training through online courses, quizzes, virtual classrooms, and e-learning content. Employees can develop new skills and knowledge using these tools, which make them highly productive and effective at work. The system also tracks employee progress and provides analytics on how to measure the effectiveness of their training programs. Using a human resource information system can enhance firms’ training and development efforts.  

6. Optimizes scheduling and Workforce Planning: A human resource information system, organizations can plan effectively the work schedules and projects of the employees. They are easily going to know when the employees have time and what skills they carry. Staffing plans for maximum productivity and minimal overtime costs will therefore be made. It also has features that assist with scheduling by automatically swapping shifts and processing time-off requests. Implementation of an HRIS can help organisations save time and reduce the effort required to manage employee schedules. 

7. Streamlines Payroll and other Processes: HRIS tool automates HR functions. This can help with pay rolls by tracking employee hours and calculating payments. It may also help with other employment-related tasks, such as onboarding employees, conducting employee performance reviews, and processing employee termination documents. Automating payroll also helps eliminate errors with respect to the payment of employees. It can even aid new hires in understanding company policies and procedures, facilitate goal-setting among managers, and provide employee feedback during performance reviews. It can even help process termination paperwork, ensuring all the documents are completed and accurate. 
8. Compliance with Laws and Standards: Human resource management is a significant part of any organization, including keeping up with government regulations. HRIS can prove to be a tool for keeping the organization compliant with such regulations. An HRIS can also automate compliance-related tasks, like tracking leave balances for every employee. These automation help reduce errors and ensure organisations meet their compliance obligations. With an HRIS in place, organisations can be confident that they are following all the necessary regulations and staying on top of compliance requirements.

Types of HRIS

The different types of HRIS used by organisations are as follows:  

Operational HRIS Systems 

Operational HRIS systems are meant to streamline and automate the daily HR department’s functions. Such HRIS systems provide a variety of modules to allow the HR professional to track employee data in an efficient way, manage their employee records, and ensure accurate payroll processing. Additional modules can include benefits administration, time and attendance tracking, and performance management. Companies can reduce administrative burden, increase efficiency, and ensure compliance with relevant regulations by using operational HRIS systems.

Tactical HRIS Systems

• Tactical HRIS systems are software applications developed to support specific HR functions within an organization.
• These systems are usually used by HR professionals to manage and automate tasks associated with recruiting, performance management, and employee training and development.
• The recruiting module streamlines the hiring process by allowing recruiters to post job positions, track applications, and arrange interviews. 
• The performance management module enables managers to set goals, provide feedback, and conduct performance evaluations.
• Finally, the training and development module ensures that employees improve their skill and knowledge levels through availed online courses, workshops, and other training resources. 

Strategic HRIS Systems 

The strategic HRIS systems are developed to support the organisation’s strategic goals and objectives. Strategic HRIS systems are specifically intended to help the management of a company manage and optimize its human capital. This includes various aspects such as workforce planning, succession planning, and talent management. HRIS systems help create valuable insights related to employee data, which would include skill sets, career aspirations, and developmental needs-something to make informed decisions about future staffing requirements. It also enables companies to create an effective talent pipeline, reduce turnover among employees, and enhance workforce performance.

Comprehensive HRIS Systems

A comprehensive HRIS system is a combination of several types of HR management systems. It encompasses all the functions of HR, from operatve to tacitve and strategic levels. It serves as a streamlined database and platform for accessing convenient review and management of a whole range of HR tasks and areas such as employee information, HR files, open positions, recruitment details, hiring, job analysis, job design, safety, skills inventory, compensation/benefits, training / development, and performance management. A comprehensive HRIS is a one-stop shop for storing and showing information needed to perform nearly all HR functions.

Limited-Function HRIS Systems

Limited-function HRIS systems are single-function oriented; they serve a specific purpose, unlike comprehensive HRIS systems. Such systems are not strategic in design but do offer more precise, or granular, functions. Exactly what function each limited-function HRIS will serve depends upon the specific system. For instance, an HRIS can be developed specifically for benefits management or even training. A minimalist company may need only one such limited-function HRIS system because it is budget-friendly, not too complicated to use, and can easily be managed comprehensively by one HR manager.

The Future of HRIS

HRIS is evolving with technology. Examples are artificial intelligence (AI), machine learning, and predictive analytics. They can help organisations understand their workforce, personalise employee experiences, and be more efficient. Mobile HRIS applications are also becoming popular. They enable employees to access HR services anytime and anywhere. AI and machine learning can help with HR tasks. This saves HR time and resources. Predictive analytics can help organisations learn more about employee behaviour and trends. This information can help them make better decisions for the future. Mobile HRIS apps make it easy for employees to access HR services. A mobile phone or tablet can be used for this purpose. This will make access easy for employees. It makes it easy for the human resource departments to serve their clients better.

Conclusion

HRIS has revolutionized how organizations manage their most critical resource – people. By automating routine tasks, empowering staff, and offering valuable insight, HRIS enables the HR department to work more efficiently and strategically than ever. And forward momentum becomes an essential element in helping organizations stay ahead in this increasingly digital world.

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