What is an HRIS?
A human resources information system (HRIS) is a type of software human resources teams use to manage employee data and organizational policies and procedures. Depending on the type of modules included, these systems handle processes like employee job role information, demographics, pay rates, organization structures, benefits administration, and payroll via integrations.
Many human resources teams use core human resource (HR) software to manage employee information within a centralized, easily accessible database. Core HR solutions help HR teams store information, manage employee data, and integrate with other third-party HR applications to simplify related workflows.
Types of HRIS
Most forms of HRIS include database and automation functionality to assist with various processes. In addition to these attributes, different types of HRIS serve distinct purposes.
- Operational HRIS emphasizes support of operational procedures such as storing employee position details, recording performance management information, and reporting on promotions and internal position changes. This type of HRIS makes manual functions easier and enables HR to track and store critical employee data.
- Tactical HRIS is the best choice for processes related to resourcing. This HRIS includes functionality for components like recruiting, compensation, and training. For example, teams can use a tactical HRIS to make resource allocation and development decisions.
- Strategic HRIS is a suitable choice for organizations that need support with strategic decision-making and future planning. These systems align with companies looking to make data-driven decisions as they grow and expand.
- Comprehensive HRIS is a combination of the styles mentioned above. It’s a one-stop shop for human resources teams and offers a range of operational, tactical, and strategic functionality.
Basic components of an HRIS
When a company selects software, it has several components to consider. Some of the most popular include:
- Database management. An HRIS is a database that stores and manages employee information. HR professionals should be able to quickly and easily input personnel information into the system.
- Time and labor management. HR departments use HRIS to manage paid time off (PTO) and leave requests, in addition to attendance and workday logs. This component should be intuitive and simple to navigate for the best employee experience.
- Payroll. Using an HRIS to track time and labor helps manage payroll efforts. The right HRIS makes it easy to download and upload employee labor data and previous pay history.
- Benefits management. With the right HRIS, organizations can take care of benefits enrollment. HR professionals should determine if the benefits module's functionality is sufficient for their organization's size.
- Employee self-service. Some HRIS solutions allow employees to update personal information, such as their address or marital status, through employee self-service portals. This makes it easy for HR to obtain up-to-date information from team members without tracking down each individual.
Benefits of an HRIS
The right HRIS benefits the human resources team and all members of an organization. Some of the key benefits of using an HRIS include:
- Streamlined organization. An HRIS can consolidate employee data and file storage, eliminating the need for multiple spreadsheets and files of paperwork. HR professionals can spend more time gathering quality data than locating it.
- Easier compliance. Many laws and regulations are involved in HR compliance, and an HRIS can make it easier for organizations to adhere to and comply with changing rules. Additionally, the centralized storage of employee-related information streamlines access to the necessary materials for audits and legal matters.
- Smoother onboarding. When an employee starts a new job, the right HRIS can simplify their onboarding experience and make information more readily available. With automated employee onboarding features, organizations will nail the onboarding experience from the get-go, leading to better employee satisfaction across the board.
- Automation. An HRIS automates various HR processes and reduces the time spent on manual administrative tasks subject to human error. For example, organizations can use an HRIS to list job openings instead of posting them manually, one by one.
- Better company insights. No matter which type of HRIS a business chooses, these solutions provide valuable company insights. Reports on absence, employee turnover, and demographics paint a picture of the state of an organization’s well-being.
Best practices for implementing an HRIS
Implementing an HRIS can feel daunting and overwhelming, but it doesn’t have to. For the highest likelihood of success, organizations should consider the following best practices.
- Compare different HRIS solutions. HR professionals should research to compare solution options and identify which one will work best for their business. A short list of must-have features and functionality will determine which tools align with which business needs.
- Implement the HRIS in phases. Teams can do a lot with an HRIS. A phased rollout approach reduces overwhelm and lack of adoption. Teams should roll out the highest priority features and functionality to the organization first.
- Continue training and gather feedback over time. An HRIS is not a set-it-and-forget-it tool. Organizations should train team members and ask for feedback to ensure the HRIS meets the company's needs.
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Alyssa Towns
Alyssa Towns works in communications and change management and is a freelance writer for G2. She mainly writes SaaS, productivity, and career-adjacent content. In her spare time, Alyssa is either enjoying a new restaurant with her husband, playing with her Bengal cats Yeti and Yowie, adventuring outdoors, or reading a book from her TBR list.
