Values of a Human Resource Information System

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Although your Human Resources (HR) department exists to deal with people, it still runs on data. A Human Resources Information System (HRIS) or Management System (HRMS) is software that stores the employee information that HR needs to operate. The goals of an HR information system are to keep the data accurate and make it more usable to speed up the operation of the HR department.

Objectives of a human resources information system

The goals of a software for a personnel information system are to collect data and make it easily accessible. HRIS usually collects and manages employee data: Names, addresses, social security numbers or equivalent identifiers, visa information and records of dependents.

HRIS also has functions for managing recruitment, applicant tracking, attendance, time management, performance appraisals and benefits.

HRIS can also provide employee self-service options for requesting reimbursements or benefits. This saves the HR department time that they have to spend processing other employees, and applications are often processed faster.

Advantages of HRIS

The importance and benefits of HRIS within an organization is that it makes it easier for HR departments to find and manage information, which also benefits the people they work with.

Organization: Because all information is in a single database, it is easier for HR departments to find the information they need, track how it is handled, and update it as needed.

Accuracy: When HR needs to transfer information between multiple software systems or software and paper files, errors inevitably creep in. Using a single system eliminates this problem. As more functions are automated, less manual data entry is required, which also reduces errors.

Security: Paper files are easily accessible, even to people who have no right to the information. HRIS can restrict access to those who need to know.

This saves time: Accumulated downtime and unused balance can be tracked and adjusted more easily and quickly with a computer than with a spreadsheet.

Regulatory compliance: Good HRIS providers keep the software up-to-date to comply with the relevant regulatory requirements.

Employee satisfaction: The easier it is for employees to interact with HRIS and obtain information such as their PTO balance, the happier they will work for you.

Reports and analyses

Another goal of a personnel information system is to make it easier for the HR department to create reports in various formats, such as a nine-box grid or an automatically rendered organization chart. HRIS can also facilitate the analysis of headcount, sales, onboarding time and other key metrics.

Elements of HRIS

HRIS software packages are not identical because the companies are not identical. The HR needs of an international corporation and a local company with a dozen employees are not the same. A company with only a few employees may not need HRIS until it grows.

Nevertheless, there are some characteristics that are common to most HRIS:
  • Tracking of job applicants
  • Boarding
  • Time and attendance tracking
  • Generating reports
  • Data Analysis
  • Management of services
  • Payroll
  • Learning Management
  • Training tracking
  • Performance appraisals

Some providers do not offer payroll management in HRIS or sell it as a separate system that can be integrated with the rest of the software. Some systems have all features, but do not effectively manage all or some of them. Research the software before you buy it.

Buy HRIS

In order to enjoy the importance and benefits of HRIS within an organization, you need to purchase wisely and then make sure that your employees and the HR department get the most out of your purchasing.

Whatever features HRIS offers, use them. Migrate your HR data to the new system so you can take advantage of the data management features.

Encourage your employees and HR staff to actually use the system. Encourage employees to try the self-service features. Encourage your managers to access HRIS and create the reports they need.

If the vendor updates the software with new features, use them.

A smart purchase includes choosing the right supplier. The ideal provider is the one who can help you get the most out of the system, for example by providing your team with the necessary training. You should also be prepared to update and improve your HRIS.

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