What is HRIS and how is it utilized?

HRIS (Human Resource Information System) is a software solution designed to enhance core HR functions and streamline workforce management. By storing, organizing, and analyzing employee data in a centralized space, HRIS enables businesses to access information easily and make data-driven decisions.

Key Functions of HRIS

Employee Data Management: HRIS allows easy storage and retrieval of employee data, including contact information, education, salary details, and tax information, with customizable access controls. Time Tracking and Attendance: It provides a dashboard to review working hours, absences, sick days, and holidays for every employee, facilitating individual and company-wide engagement trend tracking. Automated Payroll: HRIS automates payroll processes, including timesheet tracking, wage and tax calculation, pay distribution, and record maintenance, reducing human errors and ensuring data security. Benefits Administration and Compensation Management: HR professionals can manage employee benefits and compensation packages, highlight company perks, gather compensation data, and administer benefits packages efficiently. Applicant Tracking: HRIS includes an Applicant Tracking System (ATS) for processing applications, managing selection phases, and gathering metrics in one centralized source. Employee Training and Performance Tracking: It automates and tracks employee training, assists in talent management, and offers self-led certifications and progress reports, facilitating employee development. Employee Self-Service: HRIS empowers employees to set professional goals, track performance reviews, and take ownership of their career development through self-service options, reducing HR workload.

Benefits of HRIS

Organizational Scalability: Centralized data management facilitates organizational scalability by providing a single source of accurate and up-to-date information accessible to all employees. Task Automation: Automation of repetitive tasks allows HR professionals to focus on strategic initiatives, improving efficiency and reducing manual workload. Data Security and Compliance: HRIS ensures data security and compliance by securely storing all information in one place and updating systems regularly to meet HR regulations and cybersecurity standards. Enhanced Employee Experience: Smooth employee experience, from onboarding to payroll processing, helps attract and retain talent, improving employee satisfaction and engagement. Data-Informed Decision-Making: Real-time insights provided by HRIS enable data-informed decision-making, helping identify cost-saving initiatives, streamline processes, and optimize the workforce.

Choosing an HRIS

When selecting an HRIS, it's essential to identify your company's core business goals and pain points to ensure the chosen solution aligns with your needs. Some popular HRIS software solutions in 2022 include Rippling, Monday, BambooHR, Hibob, and Namely HR.

When to Implement HRIS

It's time to consider implementing an HRIS when your company faces challenges such as loss of HR time on repetitive tasks, lack of integration among multiple systems causing confusion, talent loss due to disorganized processes, or the need for data-driven insights without resources for manual reporting.

Cost of HRIS

According to Softwarepath’s 2022 HRIS report, the average cost per user for HRIS is $210 per month or $12,625 per user over five years, though actual costs may vary depending on the provider and specific requirements.