What is HRIS?

A human resources information system (HRIS) is a software solution that manages the employee database of an organization, automates HR-related functions, and provides employees with self-service access to procedures and policies. HRIS can be anything from a simple employee database to a plethora of all-things-HR, depending on the type of HRIS you choose to meet the needs of your organization. 


The modern HRIS is a cloud-based all-in-one solution that collects, stores, processes, and retrieves employee information. On-premise HRIS solutions are also available and act as a centralized database for workforce management. The purpose is to relieve your HR team from doing the grunt work and enables them to focus on actual people management — creating a happy, productive workforce.

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9 benefits of using a Human Resource Information System

HRIS benefits range from simplifying HR processes to directly influence a company's bottom line by changing the way you work. Here are the top 9 benefits of using HRIS in your organization:

 

1. Streamlines HR processes from a single system

With an HRIS, HR teams can recruit, onboard, manage, and engage employees from a single, unified solution. Outdated data management systems like spreadsheets, paper-based processes, or legacy platforms are clunky, hard to use, slow, and unsustainable as your company grows. An HRIS replaces that with a modern, digital solution that streamlines HR processes and workflows for faster, easier access, and maintenance. 

By defining hierarchies and functions within an organization, an HRIS provides transparency and accountability across operations. Meanwhile, comprehensively managing the employee database standardizes the procedures and keeps accurate, error-free records of your workforce.

Whether it’s routine personnel management, applicant tracking, or managing time off, you can do it all within the system with simple clicks of a button. An HRIS centralizes all HR processes within an organization no matter where your offices are. It not only benefits HR teams but the company and employees alike. 

 

2. Automates employee onboarding

 

How your company onboards your employees defines the overall employee experience and talent retention. With automated employee onboarding features, you can enable a seamless onboarding process for your new hire and set their paths in the company — leading to greater employee satisfaction and success. 

Whether it’s filling out forms, e-signing documents, creating onboarding checklists, sending welcome kits, or providing access to the self-service portal, you can automate it all from the HRIS. HR teams can redirect their focus to connecting with the new employee and making them feel at home.

With 88% of employees dissatisfied with the way they were onboarded, recent surveys have found that they are more likely to leave the company within the first 18 months. By using an HRIS, companies can provide easy onboarding that guides employees in every step of their task list, providing clarity on roles and responsibilities. 

 

3. Regulates compliance

 

A good HRIS ensures that your company is in legal compliance with corporate, international, or local laws. You can automatically update policies to support legality and ensure all information is stored securely. 

With the HRIS to store and manage all your employee data, all the information is easily available for any audits or legal matters. You can even ensure your employees’ time off complies with national requirements, and easily implement the latest regulations across your organization. 

 

4. Automates manual tasks and minimizes errors 

 

An HRIS helps automate core HR functions and does away with banal, repetitive day-to-day tasks. What would otherwise take hours can now be done in moments by automating common workflows like:

With a standardized process in place, the HRIS allows no room for error or redundancy and supports both the employees and the HR professionals across business operations — allowing them to do higher-value tasks. 

5. Empowers employees with self-service

HRIS benefits go beyond just the employer and HR teams. By providing access to an employee self-service portal, you can empower your employees to do more on their own without relying on back-and-forth emails or following up with multiple people for approvals. 

For instance, if your employee wants to request time off or manage reimbursements, all they have to do is access the HRIS from their mobile or desktop, and put in the requests. 

With self-service, employees can update their information, access policy documents, payslips, and tax information, and even view their performance reviews and manage appraisals. The HRIS enables employees to access HR-related information round the clock. 

6. Increases productivity and efficiency

Through HRIS’ capabilities to support multiple HR-related functions in a single system, you can help HR teams to thrive in the workplace and not just survive by the day. Organizations avoid work overload, burnout, or attrition by simply moving to an HRIS instead of having several, disconnected HR systems or using complex, paper-based processes.

A modern human resource information system also constantly updates the solution based on feedback or changes in business rules to suit the evolving needs of HR teams, employees, and the employer — with productivity and efficiency at the front and center of any HRIS. 

7. Boosts collaboration and planning

An HRIS enables accurate planning, and better collaboration by allowing employees to reach out to team members from any place, whether you’re working from the office or remotely. 

With an HRIS in place, teams can easily work towards a common goal, and foster synchronization across business processes. HR teams will find that they can simplify candidate experiences, understand internal talent availability, and track key information across the globe. 

8. Provides insights into company data

HRIS advantages don’t just stop with efficiency. An HRIS helps provide analytical insights into organizational data for better workforce planning, employee experience, retention rate, talent acquisition, time-off trends, and more.

By getting access to granular reports, you’ll be able to accurately forecast and make informed decisions. Stakeholders across the organization can leverage this data to oversee processes, identify hindrances to the business, find scope for improvement, and enhance workforce planning. 

9. Reduces cost

Whether you are a small business or medium to large, an HRIS works to reduce costs significantly by being more effective than manual, overrun processes or multiple, disparate systems. Not only is it more cost-effective to invest in an HRIS, but it also boosts your company’s bottom line by improving the quality of work across operations. The system cuts down on errors, automates tedious tasks, mitigates risks, and reduces the possibility of violations.

Features to look for while selecting HRIS

Now that you know how HRIS can ease your company load, know what you need to look for while choosing the HRIS software that’s best suited for your business needs:

1. Employee data management allows you to monitor HR-related activities and easily update information.

2. Time and attendance management to handle employee time off, manage overtime, create region-wise holiday calendars, and track time off balance and accruals.

3. Recruiting and onboarding management that lets you take care of everything from job posting to onboarding or faster recruitment cycles.

4. Payroll management to calculate overtime, payslip views, bonus details, and access to tax information.

5. Benefits administration to take care of insurance, perks, reimbursement requests, or employee wellness programs.

6. Compliance to help organizations adhere to local and international regulations. 

7. Integration capabilities to enable easy sync across multiple business processes.

8. Employee self-service to increase workforce efficiency and productivity.

9. Cloud-based platform for scalability, ease of maintenance, and data security.

10. HR analytics to monitor data across functions like time-to-hire, cost-by-source, and more.

 

Frequently Asked Questions on Benefits of HRIS

How does HRIS help manage remote workers?

A robust HRIS is accessible to everyone no matter where they are based. It accommodates changing circumstances, like the pandemic, and allows HR teams to virtually manage remote workers. 

With remote jobs being the future of the gig economy, investing in an HRIS will prove beneficial by enabling remote employees to interact with teams seamlessly, manage their data completely online, view schedules of teammates and plan accordingly, and constantly feel included in the organization — leading to better talent retention. An HRIS also improves the overall company culture and brand by helping remote workers stay connected.