The Role of HR Information Systems (HRIS)

Introduction:

The human resource information system (HRIS) is software that provides a consolidated database that includes mandatory employee master data needed by the human resource management (HRM) team to perform core human resource functions. In certain situations, HRIS can serve as an intelligent database for employee information. The integration of data, available procedures, and reporting functions improves the accessibility and usability of the system's stored information.

HRIS is responsible for storing, organizing, and handling employee information, including personal details like names, addresses, national identification numbers, or Social Security numbers, as well as visa or work permit details and information regarding dependents. Additionally, it usually includes various HR features such as recruitment, applicant tracking, managing time and attendance, conducting performance evaluations, and administering benefits. Furthermore, it might offer self-service capabilities for employees and potentially even incorporate accounting functionalities (Yasar & Marson, 2024).

Evolution of the human resource information system (HRIS):

  Figure 1: HRIS evaluation (Anonymous, 2020).

In recent times, there has been a notable transformation in human resource management (HRM). The focus has transitioned from traditional administrative tasks to a more strategic partnership within the organization's overall strategy, largely influenced by advancements in information technology within this field. The widespread adoption of information systems has profoundly altered the landscape of HRM practices, impacting how organizations gather, store, utilize, and distribute information. This technological shift has notably enhanced the efficiency of many HRM processes, resulting in a heightened level of service that has further integrated the HR department into corporate strategy. This evolution in corporate strategy has brought about substantial changes for both the HR function and its professionals (IceHrm, 2020).

Benefits of HRIS:

      1. Real-time information access:

Rather than relying on traditional methods like paper files, spreadsheets, or on-site software, an HRIS hosted in the cloud serves as a centralized database, ensuring consistency for all approved users, particularly employees and HR personnel. By facilitating real-time synchronization of updates, an HRIS streamlines version control for documents regularly modified by HR, alleviating concerns for team members accessing or editing the latest iteration of a document.

 

2. Minimize manual effort.

 

HRIS streamlines HR operations by automating tasks that would otherwise require manual effort from staff. For instance, automating the onboarding process not only saves time for both HR personnel and new hires but also enables HR staff to concentrate on more complex, value-added initiatives such as implementing a new learning management system (LMS) or establishing a mentorship program. By minimizing manual data entry and reconciliation, employees can focus on tasks directly related to their roles instead of seeking assistance from HR for benefit setup. Automated approval processes expedite project timelines, eliminating the need for stakeholders to wait for manual task completion. For example, in handling employee reimbursements, the software allows employees to simply upload documentation, after which the system seamlessly synchronizes with accounting and payroll. In case of any issues, the software promptly notifies relevant personnel in the respective departments.

3. Improved efficiency:

HRIS consolidates HR data and workflows into a single platform, eliminating the need for disparate tools connected through an API (application programming interface). Typically, HR software providers offer bundled packages, enabling companies to save on costs.

 

After compiling and analyzing historical data within an HRIS, companies can identify opportunities for cost reduction without compromising functionality or employee satisfaction. For example, utilizing HRIS reporting allows companies to monitor benefit costs and potentially negotiate better pricing with providers.

 

Ultimately, the integration of centralized real-time data, automation, and streamlined processes results in cost savings for the company.

 

4. Increased employee satisfaction:

 

Implementing the appropriate HRIS streamlines the tasks of HR personnel and employees by facilitating smoother onboarding processes for new hires and enabling employees to independently update their information as required.

 

Moreover, the HRIS serves as a central resource for both new and long-standing employees to manage their data across various stages of employment, including benefits, leave, and tax-related documents.

 

5. Access to upgraded features:

 

Utilizing paper-based or on-premises systems for managing employee information results in companies not only foregoing the advantages previously discussed but also overlooking the advanced functionalities offered by HRIS vendors in their cloud-based solutions. Employing an HRIS entails access to customer support and regular updates aimed at enhancing system efficiency, with the possibility of introducing new features (Hansen, 2023).

 

 Figure 2: Top Key Benefits of Using HRIS (Anon., 2023).

 

Key features of HRIS:

 

  Figure 3: Key Features (Anon., 2021).

                             

 

1. Core HRIS centralizes employee data and allows adjustments to profiles. May include org chart functionality.
2. Payroll Processing: manages payroll for all employees, supports various compensation plans, and handles tax filing.
3. Benefits Management: Administers benefits like 401k, health insurance, etc., automating management tasks.
4. Recruiting/OOnboarding: Facilitates candidate selection and introduces new hires to the company.
5. Time and Attendance Tracking: Monitors work hours, schedules, and reduces overtime costs.
6. Performance Management: Supports performance reviews, goal setting, and compensation.
7. Succession planning identifies needed skills and aids in training existing employees for future roles.
8. Training and Development: Offers tools for skill enhancement and mandatory training compliance.
9. Reporting and Analytics: Provides insights into workforce performance and generates compliance reports.
10. Employee Engagement: Measures and fosters a positive work environment for increased retention and productivity (Ungashick, 2023).

Challenges of HRIS Implementation:

Acquiring and implementing a new HRIS software solution can offer numerous benefits, but it's crucial to address potential challenges for successful implementation.

1. Employee and Manager Training: Adequate training for employees and managers is essential to ensuring they are comfortable with the new system. Involving them in the implementation process and allocating sufficient time for learning is key.
2. Employee Change Management: Managing change is crucial alongside training. Clear communication from managers about the reasons for the change, its effects, and how to navigate it is vital. Additional support should be available post-training.
3. Configuring HRIS for Optimal Function: While starting with basic features is helpful initially, companies should aim to configure the system for maximum efficiency and ROI. Bringing in experts post-implementation can assist in optimizing system features.
4. Assessing the Quality and Accuracy of Information: Ensuring accurate data analysis and information derivation is crucial. HRIS analysts or vendor representatives can provide invaluable assistance in assessing and maintaining data quality.
5. Complying with Legal Requirements: Understanding and adhering to legal regulations is imperative to avoid penalties and audits. HRIS vendors can provide guidance on meeting legal reporting and compliance requirements.
6. Ensuring Data Security: With the prevalence of cloud-based HRIS, ensuring data security is paramount. Companies should inquire about data security measures from vendors and implement internal protocols for secure data access and password management.

Addressing these challenges proactively can significantly enhance the success of HRIS implementation and maximize its benefits for the organization and its employees (Rietsema, 2024).

Future Trends and Innovations:

Measuring outcomes is pivotal for system improvement. As organizations embrace HR technologies, they gain insights into employee expectations. In 2024, several upcoming HR technologies will shape the landscape:

 

                                                                                        Figure 4: The Future of HRIS (Anon., 2024).

 

 

1. Workplace Digitization: Artificial intelligence and machine learning will reshape technical infrastructure, enhancing employee experiences and customer satisfaction throughout the employee lifecycle.
2. Elevating Hybrid Workplace: As many organizations transition to hybrid work models, challenges in redesigning workplaces and job roles arise. Measures like centralized platforms and space management technology aid in creating engaging work environments.
3. Digital Learning and Development: Digital learning and virtual reality ensure continued learning with enhanced engagement and inclusivity, especially for remote employees.
4. Hyper-Personalization: Employers are customizing work environments to better suit individual needs, enhancing employee experience through communication, management, and work environment adjustments.
5. Data-driven DEIB: Utilizing data analytics, organizations enhance diversity, equity, inclusion, and belongingness initiatives, driving processes like sourcing, hiring, and policy formation.
6. Tech-Enabled Employee Self-Service: Self-service portals and AI-powered chat bots empower employees to manage HR tasks independently, improving efficiency and the employee experience.
7. Metaverse in HR: The Metaverse revolutionizes HR practices, facilitating immersive virtual meetings, interviews, and discussions and enhancing collaboration across distributed teams.
8. Data-Backed and Digitally-Led Organizations: Organizations leverage data-driven insights to align actions with customer and employee needs, fostering stronger relationships and addressing social and environmental concerns.
9. AI for Talent Concerns: AI aids in addressing talent shortages by creating digital skills catalogs, optimizing hiring processes, and mitigating biases.
10. People Analytics: The growing adoption of people analytics enables organizations to make critical decisions backed by data, contributing to improved business outcomes.

These trends indicate a shift towards leveraging technology and data to create more efficient, inclusive, and engaging workplaces in 2024 (Chellappa, 2023).

Conclusion:

HR information systems (HRIS) are indispensable tools in modern organizations, underpinning HR operations and aiding strategic decision-making. By consolidating employee data, automating tasks, and offering insights through analytics, HRIS empowers HR professionals to streamline processes and enhance efficiency. As businesses evolve amidst technological advancements and workforce shifts, HRIS becomes even more essential. Embracing HRIS capabilities allows organizations to navigate challenges, foster innovation, and cultivate a culture of growth. In essence, HRIS is pivotal in shaping the future of work and ensuring sustainable organizational success.

 

 

References:

Anon., 2020. TECH FUNNEL. [Online]
Available at: https://www.techfunnel.com/hr-tech/what-is-hris/
[Accessed 08 April 2024].

Anon., 2021. spiceworks. [Online]
Available at: https://www.spiceworks.com/hr/performance-management/articles/what-is-hris/
[Accessed 08 April 2024].

Anon., 2023. YouTube. [Online]
Available at: https://youtu.be/ik_0aSVSH2s?si=z6AStIhNNfCOi2xC
[Accessed 08 April 2024].

Anon., 2024. YouTube. [Online]
Available at: https://youtu.be/FJmBNWRK5no?si=eCy6PT13clZjtort
[Accessed 08 April 2024].

Chellappa, S., 2023. engagedly. [Online]
Available at: https://engagedly.com/blog/top-hr-technology-trends/
[Accessed 08 April 2024].

Hansen, L., 2023. Technology Advice. [Online]
[Accessed 08 April 2024].

IceHrm, 2020. IceHrm. [Online]
Available at: https://icehrm.com/blog/evolution-of-human-resource-information-system/
[Accessed 08 April 2024].

Rietsema, D., 2024. Matchr. [Online]
Available at: https://matchr.com/challenges-to-hris-implementation/
[Accessed 08 April 2024].

Ungashick, B., 2023. OUTSAIL. [Online]
Available at: https://www.outsail.co/post/the-10-most-important-features-of-an-hris
[Accessed 08 April 2024].

Yasar, K. & Marson, L., 2024. TechTarget. [Online]
Available at: https://www.techtarget.com/searchhrsoftware/definition/HRIS
[Accessed 29 March 2024].

 

Figure 1: Evaluation of the HRIS (Anon., 2020).

Figure 2: The Top Key Benefits of Using HRIS (Anon., 2023).

Figure 3: Key Features (Anon., 2021).

Figure 4: The Future of HRIS (Anon., 2024).

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