HRIS Systems: 9 Core Functions You Need To Know About
You’ve heard about HRIS software, but you’re not sure exactly what it is or if it’s worth the investment.
Read on to learn all about the functions of an HRIS and how they can benefit your organization.
What Is A Human Resources Information System?
An HRIS (human resource information system) is a type of HR software used by organizations to store and manage employee data. It serves as a central repository for employee records and helps automate and streamline various HR tasks.
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HRIS credentials can equip you to fully utilize the capabilities of HRIS systems.
HRIS Benefits
Even small startups can benefit from a basic HRIS and they’re a must for larger organizations. Key benefits of using an HRIS include:
- Centralized data: Provides a single location for all recruitment database systems, improving accessibility and organization.
- Improved efficiency: Automates HR tasks such as inputting employee info, reducing manual work and saving time.
- Enhanced accuracy: Minimizes human errors in payroll, attendance, and record-keeping.
- Better decision-making: Provides data and reporting to inform talent management strategies.
- Employee self-service: Empowers employees to access and manage their own information, reducing HR workload.
- Compliance support: Helps ensure the organization meets legal and regulatory requirements.
- Cost savings: Reduces administrative costs by streamlining HR processes and reducing paperwork.
- Scalability: Helps organizations adapt to growth with flexible modules.
- Improved employee engagement: Enhances employee satisfaction with easy access to personal information and HR services.
9 Key HRIS Functions
Let’s take a look at how an HRIS can benefit your business with these 7 core functions.
1. Core HR
Core HR refers to the basic functions carried out by the HR department related to employee information:
- Demographics
- History
- Job-role details
- Tax-withholdings
- Time management
HR professionals save time when all employee information is stored in one streamlined location (your HR database), and even more time with the enablement of employee self-service (employees can update their own info, book holidays, etc).
An HRIS analyst (more on this later) can run various reports to give insights to project management, business trends, and future needs by analyzing core HR data like employee training history, job-role requirements, and planned leave.
2. Payroll
HRIS management software automates your employee’s pay schedules and stores time and attendance data. This automation allows staff to enter their own leave information that’s later approved by a supervisor, saving you valuable time to focus on other needs in your business.
Take a look at this example of an HRIS system payroll tool:
This tool enables you to group together who’s being paid on what schedule and allows for easy search capability.
Notice the “Things I Can Do” section on the right—this quick-access menu serves as a reminder of things to be done and saves time with easy-to-use system links, making it a valuable tool for HR pros handling payroll.
3. Employee benefits
HRIS software provides self-service options for employees to review their benefits information and streamlines open enrollment periods. Employees have the ability to make approved changes to their benefit information when life changes occur.
This function also allows employees to look up benefit information when they have questions about things like:
- Medical coverage
- Life Insurance
- Disability benefits
- Dependent benefit information.
HRIS self-sufficiency among employees saves your HR team crucial time. Now instead of being responsible for fielding inquiries and researching information for individual employees, HR professionals can focus their time on more strategic tasks.
4. Training
HRIS training modules help your HR department track your employees’ qualifications, certifications, and skills.
HRIS training functions also allow for quick distribution of updated policies and procedures. Plus, it can be integrated with an LMS (learning management system) to streamline available training and transcripts into one easily accessible location.
This integrated LMS system allows employees to review what training is available, keep track of their progress, and search available course options.
5. Performance management
Performance management needs like goal-setting, developmental and training needs, self-assessments, and anonymous surveys are all options available through an HRIS.
These features enable teams to conduct performance reviews, share feedback, and set goals.
While it’s important to have engaged evaluation meetings with your staff, some areas of performance evaluations can be completed by an employee on their own – an effective way to encourage honest reflection and increased participation.
Plus, this saves you time and streamlines the process.
For a more comprehensive approach to human resource management, explore our curated list of HR software platforms that can seamlessly integrate with your HRIS.
6. Time tracking and leave management
HRIS software allows for easy and accurate time tracking and tracking the amount of leave taken.
This function allows for additional self-sufficiency. Staff enter their own leave requests and time is saved by reducing the need for emailing back and forth, making phone calls, and fielding in-person requests.
7. Recruitment
HRIS implementation is a game-changer when it comes to recruitment with candidate sourcing and applicant tracking features:
- Create jobs ads and automatically post them to multiple jobs boards
- Apply selection standards to applications received
- Collate resumes and candidate data
- Track candidates' progress through the recruitment process
- Create a candidate database for future hiring.
Recruitment software features make HRIS software especially beneficial for companies with high turnover rates because you can improve your hiring practices and expectations of employee standards without having to invest a lot of time and resources.
8. Onboarding
An HRIS streamlines the onboarding process by automating document collection, allowing new hires to complete forms and paperwork online.
It facilitates consistent onboarding workflows, helping to track progress and ensure that all necessary tasks, such as background checks and training, are completed in a timely manner.
The system also provides new employees with access to essential company policies and resources, improving their understanding of their role and company culture.
9. Compliance
An HRIS helps organizations maintain HR compliance by providing updates on regulatory changes, keeping the organization informed of new requirements, and generating detailed reports for audits.
Additionally, HRIS tracks certifications, training, and legal documentation to ensure that employees meet the necessary qualifications and safety standards.
Next Steps
HRIS solutions provide options based on the specific needs of your business. To help you choose the best solution for you, you'll want to consider questions like:
- How many employees do you have?
- What are your HR needs?
- What are your plans for growth?
Or dive deeper into the differences between HRIS, HRMS, and HCM systems to get a better idea of the best type of HR management software for your needs.
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