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What is HRIS

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What is HRIS (Human Resource Information System)?

Organizations used to set up teams to manually sort through piles of paperwork to find a specific piece of information or data about employees.

However, with the introduction of new technologies like HRIS software, this process is completely automated and easy to manage now.

Check our comprehensive list of top HRIS software.

Definition of HRIS

HRIS stands for Human Resource Information System and the tool that is designed to store, organize, manage, and monitor employee data as well as information related to the human resources policies and procedures of a company is known as HRIS software.

Note: This tool serves as a centralized database for all HR-related data within an organization.

Types Of HRIS Software

There are different types of HRIS software available in the market so based on your organization’s needs you can pick the one that is most suitable. The options are: 

  1. Integrated HRIS: This type of HRIS combines all the different HR features into one unified system. Instead of using different tools for tasks like payroll, EoR, and benefits management, an integrated HRIS brings everything together in one place for easier access and management.
  2. Modular HRIS: This software provides you the flexibility to choose and customize different software modules as per your specific requirements. These modules can be customized to address different HR functions, such as recruitment, performance management, or training.
  3. Cloud-based HRIS: This refers to HRIS software that is hosted and accessed online, typically through a subscription model. Instead of installing and maintaining the software on local servers, users access the HRIS through a web browser, making it accessible from anywhere with an internet connection. 
  4. On-premises HRIS: This type of HRIS involves hosting the software and data on servers located within the organization’s physical premises. This gives the organization more direct control over the software and data but requires more resources for maintenance.
  5. Open-source HRIS: This software provides access to its source code, allowing you to modify and customize the software according to their specific needs. This gives you more control and flexibility over HRIS but may require more technical expertise for implementation and maintenance.
  6. Proprietary HRIS: This type of HRIS involves using software that is developed and owned by a specific vendor. Organizations purchase a license to use the software, and the vendor typically provides support and updates. While proprietary HRIS may offer less customization compared to open-source solutions, they often come with more comprehensive features and support options.

Now let’s find out the reason why organizations need to implement HRIS software.  

Why HRIS Software Is Important? 

Human Resource Information System is crucial because it ensures that everything related to managing your employees runs smoothly.

Think of it as a hub that efficiently connects all the tasks, processes, and information within your company with the people who need it most—your HR team (who will ultimately manage your employees).

HRIS software ensures that your team has what they need to do their jobs effectively. This means fewer delays, less confusion, and better coordination across your organization. 

Furthermore, HRIS software simplifies HR professionals’ tasks by automating employee data management tasks. This frees up valuable time and resources, allowing them to focus on other core areas. 

That’s not all, HRIS software also assists you in implementing innovative strategies and ensuring its effectiveness with the help of its advanced tools and insights. 

Now you might wonder how HRIS exactly functions. What features does it offer? Let’s find out. 

Key Features Of HRIS Software 

Listed below are the features that are offered by effective HRIS software: 

Employee Data Management

Employee data management is a fundamental feature of HRIS software that involves collecting, organizing, and storing employee data. This feature streamlines operations for many organizations by reducing paperwork, ensuring data accuracy, and improving data accessibility. 

Also, your HR team can save a significant amount of time, nearly up to 2 hours per document by making use of an HRIS with an electronic signature feature instead of relying on paper-based processes.

Benefits Administration

HRIS simplifies benefits management by automating enrollment processes, tracking employee eligibility, and centralizing benefits plan management. Also, employees can easily access and make adjustments to their benefits selections through the system.

Payroll Processing

The payroll feature automates the payment process for the HR team by integrating contractual data and new hire information, sometimes alongside time and attendance data. 

This streamlines the creation of payment orders at the end of each pay period.

Time and Attendance Management

This feature tracks time and attendance data, particularly relevant for shift workers who clock in and out. 

Unlike manual methods where employees would record their working hours on paper, HRIS systems offer digital solutions such as fingerprint or card-based check-ins, providing precise records of arrival and departure times. 

This digitalization enables efficient tracking of lateness and attendance issues.

Reporting and Analytics

HRIS systems generate automated reports on various HR metrics like employee turnover, absence, and performance. 

And, analytics tools analyze these insights to help you in making better decisions.

Employee Self-Service

You can empower your employees and supervisors to manage their own data through self-service features. For instance, employees can request time off, which, once approved, is automatically recorded in the system for payroll and benefits tracking purposes.

Now after going through its importance and benefits, you may as well want to deploy HRIS software in your organization. But how to find out which one is the best? Here’s how.

How To Choose An Ideal HRIS Software? 

In order to find the best HR solution for your organization you need to conduct a thorough analysis. 

This evaluation involves assessing your current organization size, complexity of HR processes, budget, and what features you want. 

By understanding these needs, you will be able to find the ideal choice for your organization. 

But if you are still confused then you can always go with an expert’s opinion. Like, experts recommend finding a tool that integrates seamlessly with your existing software to prevent disruptions to your business and overall information system.

Also, the HR software provider should ensure that their solution can adapt to evolving user requirements and legal standards. 

Additionally, they should offer responsive support to quickly address any technical issues that may arise during software usage.

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