What Is an HRIS? Get Familiar with Human Resource Systems

A human resources information system (HRIS) is a human resources (HR) software application that allows businesses to manage employee data. You can use an HRIS to track everything from employee roles and responsibilities to skills and qualifications, compensation and benefits, and HR performance metrics. Understanding how to use HRIS software when working in human resources is pivotal. According to the HR company ADP, with this software, you “can easily administer data linked to [your] employees from compiling through to retrieval, including personal details, employment history, and records of their training; all from a single platform” [1].

Discover more about HRIS, its uses, types, and why companies use it. 

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Human Resource Management: HR for People Managers

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What is an HRIS?

An HRIS provides a database and tools for managing employee information. HRIS systems typically include features to track the following employee data:

• Leave and attendance

• Benefits administration

• Performance management

• Job history

• Records about training

• Personal information

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Human Resource Management: HR for People Managers

Become a better manager of people. Develop strategies and skills for hiring, managing performance, and rewarding employees.

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Onboarding, Human Resources (HR), Performance Management, interviewing, managing people, Resource Management, Hr Strategy, Incentive, Compensation And Benefits, Performance Appraisal, Organizational Culture, Compensation Analysis, Recruiting, Recruitment

Some HRIS systems can allow you to track and analyse other functions, such as payroll and timesheets.

What role does an HRIS fulfil in human resources?

This software plays an essential role, from tracking employee details to providing essential data about the company’s workforce. The purpose of an HRIS is to allow HR departments and stakeholders to fulfil a variety of processes involving human resources, such as:

• Tracking employee information

• Adapting automatically to local, country-specific HR laws and regulations

• Processing payroll

• Giving employees a personalised profile page

• Providing an overview of the workforce for identifying gaps

As you can see, an HRIS can assist you in several ways beyond simply keeping track of information about your employees.

Why do companies use an HRIS, and why is it beneficial?

Companies use an HRIS to help streamline and automate many tasks associated with managing employee records. By automating these processes, an HRIS can save you and other members of the HR department time and money whilst reducing the error potential in employee data. 

An HRIS can also help you gain valuable insights into your workforce. For example, by analysing patterns in employee data, you can identify hiring or attrition rate trends. 

Below are other benefits provided using the right HRIS in your company.

1. Creates greater 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. It can also offer your employees tools to manage their benefits and career development, empowering them to take charge of their professional growth.

2. Open enrolment benefits

An HRIS can make open enrolment season much smoother for employers and employees. An HRIS can help ensure that you enrol everyone in the correct plan and that no one falls through the cracks by keeping track of employees' benefits and eligibility status. 

Your HRIS can also automate many of the tasks associated with open enrolment, such as the following:

• Sending reminders 

• Distributing information packets

• Freeing up time for HR staff to focus on other priorities

3. Improved collaboration

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

Your HRIS might also offer collaboration features like document sharing and group chat functionality.

4. Improved training capabilities 

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

5. Optimised scheduling and workforce planning

An HRIS can help optimise 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 maximise productivity whilst minimising overtime costs. 

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

6. Payroll, HR productivity, and automation

Having an HRIS can help automate payroll processes by keeping track of employee hours worked and calculating pay based on pre-set wage rates. 

Other aspects of employment relationships that you can automate with an HRIS include onboarding new hires, managing performance reviews, processing termination paperwork, and more. This automation can save time and reduce costs. It allows your HR staff to focus on strategic initiatives rather than administrative tasks. 

7. Reduces errors and maintains compliance with laws and standards

An HRIS can help you comply with government regulations, tax laws, and data security measures. Your HRIS may even automate tasks associated with compliance. These automations can help reduce errors and ensure your organisation meets its compliance obligations.

Types of HRIS systems 

You’ll find two main categories of HRIS: 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 have a software vendor host, 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. Some of the types of HRIS systems you might choose to adopt include:

• 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 strategic goals of the organisation. 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.

Examples of HRIS software

Many companies provide HRIS software, such as Kallidus, OptimumHRIS, and intelliHR. HRIS software comes with its own features and benefits, so it is essential to research software with options that meet your organisation's needs. Some popular HRIS solutions include:

Skills you'll need to implement or improve an HRIS

You may need analytical and communication skills when you’re looking to implement a new HRIS in your organisation because 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. 

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

• Analytical skills to identify areas for improvement

• Communication and interpersonal skills 

• Project management skills to lead process improvement initiatives

• Change management skills to manage resistance and implement new processes

Human resources education and training

Human resources education and training help you to stay updated with the latest technology, develop new skills, and boost your CV.

Senior HR jobs involved in the strategic side of an HRIS typically require a bachelor's degree, and some require a master's degree. Although employers don’t often require a degree in human resources, obtaining one in economics, finance, business management, or HR can improve your hireability. You’ll likely need to pick a course accredited by the Chartered Institute of Personnel and Development (CIPD). Either way, you want to consider earning a CIPD qualification at some point because you’ll probably need it during your career.

Human resource degrees 

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 can learn how to:

• Identify and resolve workplace issues

• Recruit and select employees

• Organisational psychology

• Manage business and financial information

• Industrial relations

• Effective and ethical practices in a diverse environment

• Tools for improving relationships with employees

Beyond the HRIS: Build HR skills on Coursera

HR is an exciting career option following an accredited degree course, and when working in this profession, make sure you understand how to use HRIS software. If you’re interested in entering the HR field, consider exploring more about this job from Specialisations and courses. An HR Specialisation credential can boost your CV and skill set. You might consider the Human Resource Management: HR for People Managers Specialisation provided by the University of Minnesota and offered on Coursera. An additional option is the HRCI Human Resource Associate Professional Certificate, which delves into topics such as recruiting talent, the benefits of technology, and how performance management feedback impacts employee relations.

specialization

Human Resource Management: HR for People Managers

Become a better manager of people. Develop strategies and skills for hiring, managing performance, and rewarding employees.

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(12,280 ratings)

208,250 already enrolled

Beginner level

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Average time: 2 month(s)

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Skills you'll build:

Onboarding, Human Resources (HR), Performance Management, interviewing, managing people, Resource Management, Hr Strategy, Incentive, Compensation And Benefits, Performance Appraisal, Organizational Culture, Compensation Analysis, Recruiting, Recruitment

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HRCI Human Resource Associate

Launch your career in Human Resources. In this program, you’ll learn in-demand skills for a career as an Human Resource Associate. No degree or prior experience needed. Coursera's 2024 Learners First Award Winner.

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Employee Relations, Training development, Performance Management, Recruitment, Compliance strategy, Benefit types, Compensation strategy, Pay systems, Total rewards, Business Continuity, Employee Engagement, Learning Delivery Methods, Effective Training, Training Needs, Learning Models, Legal Compliance, Risk Management, Safety Compliance, Compliance Implementation, Employee Onboarding, Job Analysis, interviewing