What is an HRIS system? A guide to human resources information systems
HRIS stands for Human Resources Information System (in Swedish: personalinformationssystem). It is a system used to manage and automate HR-related processes, primarily concerning employee data. HRIS systems help companies simplify the administration of employee information, payroll, benefits, time reporting, and much more.
An HRIS primarily focuses on centralizing and organizing employee data but can in some cases also include functions for workforce planning (such as scheduling, workforce forecasting, and attendance management). If the system handles this in detail, it can also be classified as a Workforce Management System (WFM), which is more focused on such functions.
Main functions of the HRIS system
An HRIS system can encompass a variety of functions to manage employee data. The most common functions are:
- Payroll:
Automation of payroll management, including taxes, benefits, and other payroll-related processes. - Time and Attendance:
Track and manage employees' working hours, absences, and overtime. - Benefits Administration:
Management of employee benefits such as healthcare, retirement, and other employee perks. - Employment Information:
Storage and management of employees' personal and professional information such as employment contracts, contact details, and education.
HRIS vs. HRMS vs. HCM
There are other related terms often used in connection with HRIS. Here is an explanation of the differences:
- HRIS (Human Resource Information System):
A system for managing employee data and administrative processes. HRIS helps companies keep track of employee information and streamline HR work. - HRMS (Human Resource Management System):
HRMS goes beyond HRIS and also includes functions for talent management, recruitment, and employee development, making it a more comprehensive solution for companies with greater personnel management needs. - HCM (Human Capital Management):
HCM is a broader concept that includes both HRIS and HRMS, but also emphasizes strategic personnel management throughout the employee lifecycle – from hiring to retirement.
Benefits of an HRIS system
Implementing an HRIS system can have many benefits for companies, especially in terms of streamlining administrative processes and reducing errors. Some of the key benefits are:
- Efficiency:
By automating tasks such as payroll management and time reporting, the HR department can save time and reduce the risk of errors. - Improved Employee Experience:
HRIS systems often offer self-service features where employees can update their own information, request leave, or access their payroll information. - Compliance:
With an HRIS system, companies can more easily ensure they comply with applicable labor laws and regulations by keeping all data up-to-date and accurate. - Security:
Since HRIS stores sensitive employee information, modern cloud-based systems offer strong security measures to protect data from breaches.
HRIS systems in the cloud
Cloud-based HRIS solutions offer additional advantages compared to traditional systems stored on companies' own servers. These benefits include:
- Scalability:
Cloud-based systems can easily adapt to the company's growing needs, whether it involves more employees or new features. - Integration:
A cloud-based HRIS can in some cases integrate with other business applications, such as payroll systems or ERP systems, allowing the entire company to use the same data in real-time. - Increased Accessibility:
Since the information is stored in the cloud, it can be accessed from any device, anywhere, facilitating both HR staff and employees.
Takeaway
HRIS systems are crucial for companies that want to streamline their HR processes and manage employee data securely and efficiently. By automating and centralizing these processes, companies can improve both internal efficiency and the employee experience. There are many different HRIS solutions available on the market, tailored for both small and large companies.
If you are considering implementing an HRIS system in your organization, it is important to choose a solution that fits your specific needs and can grow with the company.
