HRIS Software Guide: What It Is, Benefits, and Selection

HR managers are burned out. The pandemic has brought numerous new and constantly changing tasks to the HR department. This includes the feeling of having to be constantly available and recruiting in a constantly changing labor market. In addition to this complexity and stress, 73% of HR managers report not having the necessary resources to do their job well.

Fortunately, there are Human Resource Information Systems (HRIS) that provide relief. An HRIS helps companies capture, organize, and analyze important data about their employees across all key HR functions, including:

Recruitment and onboarding
Payroll, personnel administration, and leave management
Performance management
Training and development
Employee retention

An HRIS is not just for the HR department. Finance, accounting, and operations teams also benefit from the real-time data and reporting features of an HRIS.

In this article, you will learn everything you need to know about HRIS:

What an HRIS can do
Which companies need it
How to choose the right system
How to use it to make more informed decisions about your most valuable asset – your employees

If you are looking for a user-friendly HRIS, IceHrm is the right choice. It supports you in all processes from onboarding to offboarding your employees with powerful automation, intuitive tools, and comprehensive reporting features.

What does HRIS stand for?

HRIS stands for Human Resources Information System or Human Resource Information Software – both are common terms. HR departments use an HRIS to manage, store, organize, and track employee and organizational information. This allows them to rely less on paper records, work more efficiently, and make data-driven decisions.

HRIS Meaning: What is an HRIS and why is it useful for the entire company?

An HRIS is a personnel database that helps your company capture, organize, and manage important employee data, including:

Name and contact details
Demographic data (e.g., date of birth, gender, and employee number)
Job information such as supervisor, department, and employment status (e.g.,
full-time, part-time, freelance, etc.)
Selected benefits and compensation
Leave balances and requests

The strength of HRIS systems lies in the fact that they provide a central source of accurate data on all employees in the company. The functions of HRIS systems are varied, but the most common include:

Employee database and directory
Payroll and benefits management
Recruiting and hiring
Onboarding of new employees
Time tracking, attendance, and leave management

Employee self-service. However, not all HRIS systems are the same. Depending on your company's needs, the complexity of your data, and your growth goals, a wide range of HRIS solutions is available to you.

More advanced HRIS systems go beyond mere data collection and offer reporting features that enable HR teams to understand and strategically shape the employee experience.

IceHrm, for example, provides actionable analytics that help companies identify key trends, make data-driven decisions, and develop employee-focused strategies. IceHrm also offers features that reduce manual processes and create a seamless experience for both employees and HR teams, including:

Applicant Tracking System (ATS): Find and hire the right candidate for your position – with all resumes in one place, automatic ranking, and keyword search.
Self-paced onboarding for new employees: Give new employees onboarding tasks they can complete at their own pace – for an optimal start.
Electronic signatures: Make it easier for your employees to fill out forms and for your HR team to digitally track and store completed documents.
Performance management: Collect feedback from and about your team members to support them in their roles and advance their careers.

HRIS, HRIS System, HRIS Software, and HRM Software: What is the Difference?

There are many terms for HRIS – including HRIS system, HRIS software, and HRM software – but basically, they are synonymous.

7 Key Benefits of an HRIS

1. Your payroll will be more accurate.

Since all employee data is stored centrally, choosing an HRIS with an integrated payroll function can increase accuracy and compliance, save time, and reduce the risk of errors. An integrated payroll system is beneficial for companies of all sizes, but it is especially important for larger organizations with complex payroll processes and regulations to follow.

2. Your data is available at any time.

With an HRIS, you never have to search through filing cabinets and spreadsheets again, and you can avoid manual data entry across multiple systems. All employee data is stored in one database, allowing you to capture, track, update, and search all the information you need in seconds.

3. You don't have to worry about compliance with legal regulations.

A good HRIS provider always keeps track of relevant regulations, such as the General Data Protection Regulation (GDPR), that affect HR teams. This way, companies can meet compliance requirements easily and securely.

4. You save a lot of time.

Even manual, time-consuming HR tasks can be completed quickly and easily with an HRIS. For example, employees take an average of three unpaid vacation days per year. This may not seem like much at first, but at an average hourly wage of $22.12, three unpaid vacation days quickly add up to $530.88 per employee per year.

An HRIS makes it much easier for employees to comply with the vacation request process. Thanks to employee self-service, they can view their vacation entitlements and no longer have to submit paper forms to their supervisors. The HRIS forwards the request, and the supervisors review and approve the vacation in the system.

5. You gain freedom for strategic action.

By having fewer manual tasks, you can use your valuable skills and time for strategic HR initiatives that provide real value to the company, such as improving employee retention, increasing team productivity, and shaping your corporate culture.

6. Your employees benefit from a better experience.

Whether it's an effective and pleasant onboarding process, a solid performance review cycle with documented feedback, or straightforward leave requests – the smooth use of your HR information system (HRIS) improves the overall experience of your employees.

7. Your reporting becomes more meaningful.

When reporting on HR performance to your leadership team, an HRIS helps you gather data that aligns your actions with company goals. Access to accurate and up-to-date data across your entire organization – including key metrics such as employee engagement and retention – helps leaders support HR initiatives more strongly and make more informed strategic decisions.

How to Choose the Right HRIS

Choosing the right HRIS can be a challenge. There are countless options, each with its own features and benefits.

To ensure that an HRIS meets your company's needs today and in the future, we recommend focusing on three core areas: your company's growth strategy, the integration of the HRIS into your existing IT infrastructure, and making optimal use of the system.

1. Consider your future growth.

The number of your employees is one of the most important factors when choosing an HRIS system. Different HRIS systems are designed for different company sizes. Therefore, choose a system that meets your current needs and future growth.

Small businesses: For managing employee data, leave requests, and basic payroll functions, you may only need a simple HRIS. These systems are usually cost-effective and user-friendly, whether or not you have a formal HR department.
Larger organizations: With hundreds or thousands of employees, you need an HRIS that covers more complex HR functions such as benefits management, regulatory compliance, and performance management. While these more complex systems require higher investments, they offer flexibility and customization options that can be tailored to the specific needs of your growing organization.
Future growth: If you expect a significant increase in personnel in the near future, it may be worth investing in a more powerful HRIS now to ensure that your system does not have to keep up with demands too quickly.
International workforce: Another important aspect is your HRIS's ability to manage employees in different countries. If you are planning international expansion, you will need an HRIS that supports multiple languages, currencies, and compliance requirements. Look for systems with experience working with global companies that can provide you with the necessary support and expertise to manage your international workforce.

2. Understand how your HRIS can integrate into your existing IT infrastructure.

When selecting an HRIS, it is important to understand which other business applications need to send data to the system or receive data from it.

Here are some questions to help you prepare:

Which existing applications will be replaced by your HRIS?
Which other teams will access data from the HRIS?
What does the technical integration process look like?
What integration support will you receive from the vendor?

Integrations can vary greatly depending on the HRIS and the individual needs of your company. Some providers offer preconfigured integrations with common HR systems such as payroll software or personnel management platforms. Others may require custom integrations, which can be more time-consuming and costly.

Look for providers with dedicated support teams and a clear, step-by-step integration process.

3. Start by creating onboarding plans to increase adoption.

Choosing an HRIS is important and often expensive, but the benefits and ROI of the new system far outweigh the initial difficulties of setup and training.

Here are some tips on how to make the most of your new system:

Create a plan for migrating all of your data, taking into account the needs of the different teams in your company.
Define, communicate, and implement new processes. Don’t forget to share the plan with your employees and leadership team and provide regular updates on the progress!
Design an implementation plan including training to help your team get started with the new HRIS system and understand the associated expectations. Rely on your HRIS provider.
They are your partner and should fully understand the challenges in human resources and support you in achieving your goals.

Which HRM software is the best?

IceHrm is widely considered the best HRM software on the market. The intuitive, cloud-based platform simplifies HR processes such as employee data management and reporting, leave request handling, payroll and performance management, as well as hiring and onboarding new employees.

IceHrm has been recognized multiple times for its customer satisfaction and innovative approach to human resource management. TrustRadius, a leading review platform for B2B technology, has included IceHrm in its Top Rated Awards for HR management software for several consecutive years.

Next Steps: Find the Right HRIS for Your Company

Choosing an HRIS should be well thought out. The right system can solve your company's biggest challenges and give your HR team the freedom they need to make a critical strategic contribution.

If you have questions during your HRIS research, such as whether an HRIS is the best solution for your company, we are happy to help.

Choosing the right HRIS is a critical strategic decision that determines a company's ability to efficiently manage its workforce and empower its HR team. The right system eliminates manual burdens, ensures compliance, and provides the data necessary for informed decision-making. IceHrm stands out as an intuitive, comprehensive, cloud-based HRIS that delivers these benefits. By integrating all core functions—from the Applicant Tracking System (ATS) and self-service onboarding to payroll, performance management, and electronic signatures—IceHrm provides a seamless, accurate experience for both HR professionals and employees. Investing in IceHrm is the strategic next step to solving complex HR challenges and unlocking your team's potential to contribute true strategic value to the organization.