In this article, we delve into the world of HRIS as it is for years a crucial tool for managing HR activities effectively. We will explore the latest trends, best practices, and tips for maximising the benefits of an HRIS.
While entrepreneurs and HR professionals understand the importance of having efficient software to streamline operations and gain insights into team dynamics, with numerous HRIS providers available, selecting the most suitable HR software for your organisation might be a challenge.
Table of Contents
What is an HRIS?
Human Resource Information System (HRIS) or Human Resource Management System (HRMS), is basically an intersection of Human Resources and Information Technology through HR software. This allows HR activities and processes to take place electronically.
In other words, an HRIS can be seen as a way, through software, for companies to manage a number of activities, including data related to Human Resources, accounting, management, and payroll. With HRIS, a company could be in a position to better plan, manage and control HR costs without having to allocate too many resources to it.
Examples of HRIS include Workday, BambooHR, and Oracle among others.
Components of an HRIS
In companies there is a lot of HR and employee data available, starting from the moment the employee will apply for job. An Human Resource Information System is essential ensuring data storage and handling is in compliant with data privacy regulations and contribute to effective work instructions and HR processes for improvement. Most HRIS solutions today offer customised modules based on the unique needs or country specifics.
1. Time & Attendance
This component is used for electronic attendance records, allowing for accurate tracking of working hours and overtime. It will include the automation of timekeeping processes to ensure planning accuracy and generate reports on employee attendance patterns and trends.
2. Data Management & Employment
The data management and employment component are set to securely store and manage employee information, including personal details, job history, and employment contracts.
3. Talent Acquisition
The Talent Acquisition component is related to job openings, managing, and tracking of applications throughout the recruitment process. The data could be used to analyse recruitment metrics and optimise the hiring strategies and the recruitment process.
4. Employee Benefits
Having HR software that can manage employee benefits programs, including plan overviews and enrolment, would be advantageous as it grants employees access to vital benefit information. However, depending on the nature of the benefits and regulatory requirements in different EU countries, there may be a need for a separate employee benefits software program that interfaces with the HRIS.
5. Leave of Absence / Time Off
The Leaves of Absence module efficiently handles employee absence and time off requests through electronic approval. It empowers employees to submit time off requests and access their balances via self-service portals, while also generating reports on leave usage and trends for workforce planning. However, it is essential to note that country-specific regulations may limit the tracking of all types of leave in the Netherlands for example through such a system.
6. Performance Management
The component performance management is part of the objectives setting for employees, and managers to conduct their regular performance reviews and evaluations.
7. User experience/Employee Interface
The user experience is important, as the HRIS should offer a user-friendly interface for employees to access the features and functionalities, providing self-service options for updating personal information, viewing information, and requesting time off.
– Ensure mobile compatibility for on-the-go access to HRIS features, customize the employee interface to align with the organization’s branding and culture, and gather feedback to continually improve the user experience.
Is Payroll Part of HRIS?
Payroll plays a crucial role in the employee lifecycle, but at Human in Progress we are of the opinion it should be managed separately. While HRIS includes payroll and it is beneficial for payroll systems to integrate with HRIS, the distinct nature of payroll tasks, skill requirements, and operational needs warrants a separate selection process.
Therefore, we suggest excluding payroll from the scope of HRIS selection, to ensure focused decision-making on specific HR requirements.
The Benefits of HR Software
Efficiency Enhancement
- Automation of Recurring Tasks: HR software expedites routine tasks through automation, saving time and reducing manual HR effort.
- Efficient Recruitment: A larger pool of candidates could be reached for job openings and swiftly apply rigorous selection standards to numerous applications.
- Mobile Onboarding: Facilitating quick onboarding processes with mobile accessibility, ensures seamless integration of new hires into the organisation.
- Policy & Procedures: Easily distribute up-to-date company policies and procedures to employees, making sure every HR stakeholder stays informed.
- Time and Attendance: Improve capabilities and accuracy in tracking time and attendance, is enhancing workforce management.
- Error Reduction: Minimise errors in payroll systems and employee databases, ensuring accuracy and compliance with regulations.
Employee Empowerment
- Employee & Manager Self Service (ESS & MSS): Self-service options for employees, will lead to more engagement and will empower them to manage their own information.
- Training & Development: HR software integrates training and development tracking features, providing enhanced learning opportunities for employees.
- Employee Benefits: Streamline the employee benefits enrolment might save time and will allow employees to make immediate changes to their benefit information as needed.
Cost Savings and Compliance
- Cost Savings: HRIS will reduce paper usage, storage costs, and related materials by digitising HR processes, resulting in potential cost savings.
- Compliance Management: The risks of compliance issues will decrease with automated alerts and reporting options, ensuring adherence to regulatory requirements.
Data-Driven Decision Making
- Data Management: Utilising HR analytics and integrated organisational data will lead to making more informed HR decisions, driving strategic People & Culture initiatives and organisational growth.
Performing Analysis
HRIS will lead to greater efficiency in decision making, increase of the quality of the decisions and as a result, the productivity of employees and managers will increase.
HRIS systems can also be used to improve productivity related to financial management through tasks related to payroll processing and benefits administration.
Performing analysis and looking at statistics related to different aspects of the organisation can help in making better decisions and also in discovering patterns. HRIS analysis tools give staff the ability to perform many relevant calculations quickly. Some software programs are designed to create professional reports with statistics and analysis that can help HR professionals see problems at a glance.
Choose the Right Type of HRIS
There are many HR software solutions available so the challenge to find the best system comes down to the requirements set by the organisation. In addition to requirement list, the organisation should align the capabilities of the HRIS with their HR priorities in their HR Operating Model.
Operational HR modules within the HR software application will focus on current workforce development, while strategic modules support growth and succession planning efforts.
HRIS Solutions
There are a number of solutions offered for training, payroll, HR, compliance and hiring. Most high-quality HRIS systems have a flexible design with databases integrated with a wide range of available functions. Ideally, they also offer the ability to quickly and accurately create reports analyse information to make it easier to manage the workforce quickly and accurately.
“…one place for announcements, external web links and company policies.”
In addition to these software solutions, companies are also looking into the HRIS modules that help them leverage the full productivity of their workforce, including the varied experiences, talents and skills of all personnel and functionality of an HR intranet to keep employees engaged.
In conclusion, a company taking the time to invest in an HRIS that fits their goals, objectives, mission, and values is a company investing in its future and in its success. It will be necessary to adapt an HRIS to the unique needs of a company so that the system remains flexible and relevant throughout the life of the company or business.
For more information on HRIS resources or support in the selection, contact us.
