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As an HR or business leader, you’re no doubt a busy person. Any tool that reduces admin and improves talent management processes would surely be of interest.

Well, such tools do exist!

In this article, I’ll show you how an HRIS can benefit your HR teams, employees, and organization.

What Is An HRIS?

At its core, an HRIS (human resource information system), is a software tool that stores employee and organizational data and combines a number of features to help HR professionals at every level do their jobs more effectively.

In essence, it’s about utilizing the power of technology to oil the cogs of the organizational machine and create a happier, more productive workforce.

Benefits Of An HRIS

From organizing employee information to automating administrative tasks and offering insights with HR data, the right platform could be transformational for your org.

Benefits For HR Departments

Much of the benefits of HRIS software will be felt in the HR department, freeing up time and resources to work on the rewarding part of the job: developing people.

Efficiency and time-saving

Automating routine HR tasks such as employee record management, leave management, payroll processing, and benefits administration saves time allowing HR professionals to focus on more strategic activities.

Additionally, features such as employee self-service allow workers to access and update their information, reducing the number of requests HR has to deal with.

No more mountains of paperwork or juggling multiple spreadsheets!

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Improved compliance

HRISs help ensure compliance with labor laws and regulations by providing up-to-date information and automated reminders for key compliance deadlines and requirements.

Reporting and analytics

Enables HR teams to generate reports on various HR metrics such as headcount, turnover rates, and demographics supporting data-driven decision-making.

Improved communication

Enhances communication within the organization by providing a platform for company-wide announcements, policy updates, and other important information.

Benefits For Employees

An HRIS can also make your employees' lives easier and make them feel more engaged and connected.

Easier onboarding

A smooth onboarding process helps set the tone for new hires and contributes to employee success and retention. 

As an HRIS function, it might be an extension of the applicant tracking system that helped get the candidate over the line. 

New hires can log into the employee self-service portal, deal with any admin, start training, and get a feel for the role and their new team.

Increased empowerment

With a self-service portal, employees will have the ability to manage their personal information, vacation requests, benefits and perks.

There's less chance of admin errors affecting pay or time off, and they can also take advantage of automated reminders.

Increased employee engagement

Employees can also use the HRIS platform to access training resources and track their progress through assessments.

Just like HR and management will have more data to aid with career development, so will employees. This can motivate and encourage them to take additional training, track their progress, and set their own goals.

Organizational Benefits

Of course, the ultimate beneficiary of HRIS is the organization overall (as it should be).

Cost savings

By streamlining processes, reducing manual work, and minimizing errors, an HRIS helps lower administrative costs and increases overall productivity.

Better talent management decisions

Using data and analytics made available by HRISs, HR and leadership can use data to make better decisions regarding talent management.

Improved communication

Enhances communication within the organization by providing a platform for company-wide announcements, policy updates, and other important information.

Features Of A Human Resource Information System

HRIS systems come in many different shapes and sizes. Here are some of the main features to look out for:

  • Employee database management: Centralized repository for storing all employee-related information, including personal details, employment history, job roles, and contact information.
  • Time and attendance tracking: Tools for tracking employee work hours, attendance, leave requests, and absences, often integrated with time clocks or biometric systems.
  • Payroll management: Automated payroll processing, including salary calculations, tax deductions, benefits deductions, and direct deposit management.
  • Benefits Administration: Management of employee benefits programs, such as health insurance, retirement plans, and other perks, including enrollment, tracking, and reporting.
  • Recruitment and applicant tracking: Features for posting job openings, managing applications, tracking candidates through the hiring process, and onboarding new employees.
  • Performance management: Tools for setting performance goals, conducting appraisals, providing feedback, and tracking employee performance metrics.
  • Compliance management: Ensures compliance with labor laws and regulations, including automated alerts for upcoming deadlines and reporting requirements.
  • Employee self-service portal: Allows employees to access and update their personal information, view pay stubs, request leave, and manage benefits through a self-service interface.
  • Reporting and analytics: Comprehensive reporting and analytics capabilities for generating insights on various HR metrics, such as headcount, turnover, and employee sentiment
  • Training and development: Tools for managing employee training programs, tracking progress, scheduling courses, and maintaining certifications and skill development records.

It’s worth noting that, while vendors will claim their solutions can do everything, it’s likely they’ll only do a couple of things well. 

This is why it’s generally a good idea to mix and match when building your HR tech stack.

How To Get Started With An HRIS

Now you’re thinking an HRIS might be pretty useful, or considering how your current system can be upgraded.

With so many options out there, it’s important to find the best HRIS software for your business needs.

HR professionals should look into ease of use, what core functions are included, how customizable the service is, if the solution can integrate with any legacy systems, and, of course, value for money.

A good place to start is our guide to the best HRIS Systems.

Get Help Choosing Your HRIS

Need expert help selecting the right HRIS Software?

If you’re struggling to choose the right software, let us help you. Just share your needs in the form below and you’ll get free access to our dedicated software advisors who match and connect you with the best vendors for your needs.

Kim Behnke
By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication, and recently completed a Certified Digital HR Specialist program through the Academy to Innovate HR. When away from her desk, she can usually be found outside tending to her ever-expanding garden.