2 hours per day. That’s how much time a Human Resources Information System (HRIS) can help HR professionals save on administrative tasks. In other words, HRIS is indispensable in turning HR from an administrative into a strategic function.
Written by Erik van Vulpen , Neelie Verlinden Reviewed by Monika Nemcova 11 minutes read
Effective HR management without a Human Resources Information System (HRIS) is virtually impossible nowadays, at least for companies of a certain size.
In this article, we take a closer look at the Human Resources Information System, share best practices for HRIS management, and provide ideas to take your HRIS analytics efforts to the next level.
A Human Resources Information System, or HRIS, is a software solution that is used to collect, manage, store, and process an organization’s employee information. Essentially, HR teams use an HRIS to work more efficiently and make more data-driven decisions.
In the past, HRIS software used to be on-premise, meaning that it ran on the company’s own technical infrastructure. Nowadays, it’s almost always cloud-based, making it much easier to update, among other things.
HRIS quick facts
Depending on the HRIS provider, the exact functionalities of the system will differ. For clarity and consistency, we will discuss the features listed in the section explaining what an HRIS is, which are the core HRIS functions.
Employee data management refers to the collecting, organizing, and storing of employee data and is arguably the number one feature of any HR information system and the reason why so many organizations use one.
It allows businesses to reduce paperwork, keep the information up to date, as well as enhance searchability and accessibility of information.
HR professionals can save as much as 2 hours of admin time per document by using an HRIS and electronic signatures instead of paper documents.
Another feature of the Human Resources Information System is benefits management. Employee benefits are an essential aspect of compensation and are also managed in this system.
HRIS simplifies benefits management by automating enrollment processes and tracking employee eligibility. It serves as a centralized platform for managing various benefits plans and enables employees to easily access and modify their benefits selections.
The payroll feature automates the pay process of an organization’s employees. Contractual data and information about new hires is often entered into this module of the system – sometimes combined with time and attendance data – and at the end of the month, payment orders are created.
This module gathers time and attendance data from employees. These are especially relevant for shift workers who clock in and out.
Back in the day – and as we’ve seen earlier, in some companies still today – employees often wrote down their working hours on a piece of paper. Their manager would then manually enter the data into a time-tracking system. Based on this data, payment orders were generated and paid to all employees.
In today’s more digitalized work environment, workers often check into work by fingerprint or with a card synced with the company’s HRIS. This gives an exact time for people’s arrival and departure. Any issues with lateness can easily be detected.
This feature enables the creation of automated HR reports on various topics like employee turnover, absence, performance, and more. Analytics involves the analysis of these insights for better-informed decision-making.
As we’ve mentioned above, companies are increasingly focusing on having employees and their direct supervisors manage their own data.
Employees can, for example, request PTO themselves. Once approved, these requests are then immediately saved into the system (and registered to track for payroll and benefits purposes).
Using an HRIS has multiple benefits for the organization, HR, and the employee.
Working with this kind of software typically becomes interesting when the company has between 30 to 50 employees. Managing the basic employee information in Excel becomes cumbersome at this point and simple procedures like approving employee time off need to be standardized.
Using an HRIS is especially beneficial for large organizations, which typically use more advanced HRIS systems to support different HR functions. Small businesses would suit a more basic HRIS.
The HRIS software market is fiercely competitive. There are many vendors to choose from depending on your organization’s needs.
Other well-known HRIS vendors for large companies are ADP, Cornerstone, and Cegid.
HRIS implementation is a complex process that involves not only a lot of research and multiple stakeholders but also requires a significant amount of change management.
We’ll have a look at a high-level, 6-step overview of the HRIS implementation process.
Find out what your different stakeholders need from an HRIS. Based on these requirements – and after you’ve checked out our HRIS requirements checklist, you can shortlist potential providers.
You can then ask these providers for a proposal. Ideally, you’ve chosen a suitable HRIS provider at the end of this phase.
In this phase, you select an implementation partner and create a steering committee and an implementation team. The steering committee usually consists of senior delegates from your chosen HRIS provider, the HR director from your organization, the internal project manager, and preferably a senior user from your business.
The implementation team’s primary responsibility is working on the day-to-day tasks that come out of the implementation.
At this point, you need to specify your user groups and map out your processes and workflows. Define the functional and technical requirements for your HRIS infrastructure and security.
Also, note that you might need to build an integration between your HRIS and other existing systems during this phase. This is why it’s essential to have an HR Information System with integration capabilities to accommodate existing and future systems.
In this phase, you need to create a core test team to test your new HR Information System and provide feedback for potential improvements. After this, you should also create a user acceptance test, where you can bring in a number of users to provide final feedback.
Before the go-live, you will need to prepare training for your technical staff, a communication plan, a Frequently Asked Questions page, and other support documents.
Once all your support processes are in place, you can officially launch your HRIS. Remember to constantly collect feedback and update your training material in line with the evolving systems. Constant, accurate communication is key here.
In case you want to skip the section above, this learning bite explains how to implement an HRIS in 6 steps!
In terms of job functions, there is one role in particular that involves working with the organization’s HRIS a lot: the HRIS analyst.
The HRIS analyst occupies the unique position of being the IT and data expert in the HR field.
Other job roles related to HRIS are HRIS manager and HRIS specialist.
The HRIS analyst provides support for the HRIS. This includes researching and resolving HRIS problems and liaising with other parts of the business, like finance and payroll.
Analysts also generate standard and ad-hoc HRIS reports and improve HRIS processes. This means improving the employee experience using the system, coming up with user-friendly adjustments, and implementing new policies to be reflected in the system.
However, in today’s work environment, knowing the basics of working with an HRIS is an essential skill for all HR employees. This is especially relevant in small and medium-sized organizations without a dedicated HRIS team.
The expected HRIS analyst salary differs based on location and seniority.
For example, a junior HRIS analyst in New York (NY) will have a salary ranging between $49,000 and $84,000, with an average of $70,300, according to Payscale. An experienced HRIS analyst will earn somewhere between $64,000 and $108,000.
Ziprecruiter reports that the average annual pay for HRIS analysts in the U.S. is around $90,000.
If you want to learn more about HRIS implementation and building and managing a digital HR strategy, we recommend looking into our Digital HR Certificate program, which will provide you with a solid understanding of these topics.
Depending on the HR information system your organization uses, at least one person in the HR team (and IT department) will probably want to opt for a vendor-specific certification.
People interested in specializing in HRIS systems may consider studying IT and HRM. It is useful for understanding the complexity and particularities of the system, while HRM helps understand the processes that the HRIS is supporting.
Combining both enables you to make better decisions regarding system implementation and operation.
HRIS stands for Human Resources Information System. The HRIS is a system used to collect and store data on an organization’s employees. This often includes payroll, benefits, time and attendance, and employee self-service.
What is an example of an HRIS system?Well-known HRIS providers (for large organizations) include Workday, Oracle, SAP, Cegid, Kronos, and ADP. Examples of HRIS for small and medium-sized organizations include BambooHR, Paycor, TalentHR, and Zoho People.
What is an HRIS analyst?The HRIS analyst provides support for the HRIS. This includes researching and resolving problems and liaising with other parts of the business, like finance and payroll.
What does an HRIS manager do?An HRIS manager is responsible for implementing and maintaining the HRIS software for an organization. They are a part of the HR team and manage data related to employees, including compensation, benefits, recruitment, and more.
