What Is An HRIS? Get Familiar with Human Resource Systems

An HRIS, which stands for human resources information system, is a software application designed to streamline the management of an organization's workforce. It acts as a centralized hub for storing, organizing, and analyzing employee data. HR professionals, managers, and employees can utilize HRIS to perform various HR functions more efficiently.

In today's dynamic business landscape, efficient and strategic human resource management streamlines processes and adds to a positive workplace culture. An essential tool for organizations of all sizes is an HRIS. Learn more about HRIS, exploring its core functionalities, the extensive benefits it offers, and its role in optimizing workforce management practices.

What is an HRIS?

A human resources information system (HRIS) is an HR software application that allows HR departments and other stakeholders within an organization to manage employee data, including:

• Roles and responsibilities

• Skills and qualifications

• Compensation and benefits

• Performance metrics

• Leave and attendance

• Payroll and timesheets

• Personal information

• Employment history

• Onboarding

Benefits of HRIS

Besides managing employee data, an HRIS system offers several benefits. When it comes to organizational processes and decision-making, you can use the features of an HRIS to analyze trends, generate reports, and gain valuable insights into your workforce. For example, an employee performance report can highlight opportunities to provide more training to develop your team's talent. A report on hiring or attrition rate trends can be used in strategic workforce planning efforts.  

Additional benefits provided using the right HRIS in your company include the following:

Save time and reduce costs.

An HRIS can help streamline and automate many tasks associated with managing employee records. By automating these processes, an HRIS can save you time and money, allow your staff to focus on strategic initiatives rather than administrative tasks, and reduce the error potential in employee data. 

Increase employee engagement.

An HRIS can help create a more engaged workforce by providing employees with access to their records and allowing them to see their performance and progress over time. An HRIS can also provide your employees with tools to manage their benefits and career development, empowering them to be responsible for their professional growth.

Learn more: What Is Remote Employee Engagement? Plus 8 Strategies to Enhance It

Improve open enrollment benefits.

An HRIS can make open enrollment season much smoother for employers and employees by ensuring everyone gets enrolled in the correct plan. An HRIS can also:

• Keep track of employees' benefits and eligibility status. 

• Automate reminders.

• Distributing information packets.

Improve collaboration.

An HRIS can improve collaboration throughout an organization by providing a central repository for employee records and information. By making employee data easily accessible, an HRIS can facilitate communication and collaboration between departments. 

Your HRIS might also offer features supporting collaboration, such as document sharing and group chat functionality.

Enhance training capabilities. 

An HRIS can improve an organization’s training capabilities by providing training initiatives, such as online courses and quizzes, virtual classrooms, and e-learning content libraries.

Optimize scheduling and workforce planning.

An HRIS can help optimize work schedules and projects by tracking employee availability and skill set. You can create more efficient workflows and staffing plans with enhanced visibility and planning that maximize productivity while minimizing overtime costs. 

Your HRIS might offer features that support scheduling optimization, such as shift-swapping capabilities and automatic time-off request processing.

Streamline payroll and other processes.

An HRIS can help automate payroll processes by keeping track of employee hours worked and calculating pay based on pre-set wage rates. It can also automate other aspects of the employment relationship, such as onboarding new hires, managing performance reviews, processing termination paperwork, and more.

Comply with laws and standards.

An HRIS can help you maintain compliance with government regulations, such as those related to equal employment opportunity (EEO) and the Family Medical Leave Act (FMLA). 

Your HRIS may even automate tasks associated with compliance, such as tracking employee leave balances or generating reports on EEO statistics. These automations can help reduce errors and ensure your organization meets its compliance obligations.

Who uses HRIS?

HRIS systems offer a variety of benefits for HR professionals, managers and team leaders, and employees within an organization. HR professionals use HRIS to manage employee data, payroll, time and attendance, onboarding, benefits, and performance management. Managers and team leaders use HRIS to access employee information, conduct performance reviews, approve leave, manage schedules, and keep track of team goals. Employees use HRIS to access pay and benefits information, update personal details, request time off, view schedules, access company policies, and communicate with HR staff.

Types of HRIS systems 

Two main categories of HRIS are on-premise and cloud-based. On-premise HRIS systems are installed on a company’s servers and require IT support for maintenance and updates. Cloud-based HRIS systems are hosted by the software vendor, and access is via the internet. They are typically easy to use and require less IT support. 

You’ll find many HRIS systems, each with unique features and capabilities. Here are some of the types of HRIS systems you might choose to adopt:

• Operational HRIS systems support the daily operations of an HR department. These systems typically include modules for tracking employee data, managing employee records, and processing payroll.

• Tactical HRIS systems support specific HR functions. These systems often have recruiting, performance management, and training and development modules.

• Strategic HRIS systems support the organization's strategic goals. These systems can help with the strategic side of human capital, such as workforce planning, succession planning, and talent management.

• A comprehensive HRIS system supports all aspects of the HR function. These may include modules for the above functions, employee self-service, benefits administration, and time and attendance tracking.

• Limited-function HRIS systems support a limited number of HR functions or processes. You’ll get modules for essential aspects of HR, such as employee data management, but not every feature.

HRIS software examples 

HRIS software programs come with different features and benefits, so it is essential to find software that meets your organization's needs. Some popular HRIS solutions include:

HRIS skills you'll need

When you’re looking to implement a new HRIS in your organization, be aware that it is a change management process and may involve a portfolio of projects rather than a single one. You'll need to be strategic in your system choice and how it is delivered. 

Some skills you'll need to adapt HR processes, protocols, and technologies include:

• Analytical skills to identify patterns, interpret data, and contribute to an organization's decision-making

• Communication and interpersonal skills to understand HR teams' needs, collaborate with IT, and collect feedback from the team on HRIS implementation

• Project management skills to lead process improvement initiatives, select vendors or system upgrades, collaborate with IT to configure the HRIS, and monitor progress

• Change management skills to develop a clear vision and rationale for implementing an HRIS, manage resistance, communicate updates and address concerns, and offer support and assistance

Human resources education and training

Human resources education and training keep you up-to-date on the latest technology and skills you need. Continuing your education can also be a great way to boost your resume.

Human resource degrees 

Most senior HR jobs involved in the strategic side of an HRIS require a bachelor's degree, and some require a master's degree. A human resources degree provides you with the knowledge and skills necessary to perform HR-related duties. Through coursework, internships, and other experiential learning opportunities, you learn how to:

• Identify and resolve workplace issues

• Recruit and select employees

• Train and develop staff members

• Manage employee benefits programs

• Administer payroll systems

• Understand diversity in the workplace

• Plan the workforce and performance management

• Mediate disputes between employees or departments within an organization

Read more: HR Leadership in 2024: Jobs, Strategies, and Career Guide

Human resources certifications

Certifications can also enhance your chances of landing competitive HR roles where you’ll influence HR processes. Explore credentials like the Society of Human Resource Management (SHRM) certification or the Certified Human Resources Information Management (CHRIM).

Get started in HR with Coursera.

An HRIS is software that streamlines HR tasks and employee data management. It offers benefits like cost savings, improved engagement, and better decision-making through data analysis. From payroll to training, an HRIS can automate many HR processes. Different HRIS types, such as cloud-based or comprehensive systems, fit various needs. Implementing an HRIS requires skills like communication and project management. HR professionals can stay up-to-date with HRIS through education and certifications.

If you want to enter or progress in the HR field, consider learning more from Specializations and courses on Coursera. An HR Specialization can boost your resume and skill set. Consider the Human Resource Management: HR for People Managers Specialization to learn best practices for hiring and rewarding employees and managing their performance.