Technology

Types of HRIS Systems to Know About

The work of HR leaders and professionals often feels never-ending, as there’s always something more to do, complete, and memorize. It is often challenging to keep up with all the activities while ensuring employee satisfaction and that everything runs smoothly.

After all, HR practitioners must take care of payroll, address workers’ requests, and keep productivity levels in check. At the same time, they must conduct the more tedious tasks that take time but rarely feel meaningful, causing exhaustion.

For instance, these professionals spend up to 25 percent of their working hours reading or answering emails. Meanwhile, they must brainstorm recruitment strategies, maintain regular communication with the candidates, and report to the C-Suite.

Indeed, that’s not an easy undertaking, contrary to the stereotypes about the HR profession and daily assignments. These practitioners need efficient and reliable methods to speed up their work and streamline their responsibilities.

That’s why many companies and organizations use HRIS. This tech helps HR professionals navigate their obligations more swiftly, manage productivity, and enhance their results.

The possibilities of HRIS explain why the HR tech market size will reach $90 billion by 2025. Here’s everything you should know about this multifunctional system that often serves as HR’s best support.

What is HRIS?

HRIS represents the acronym for the words Human Resources Information System. Hence, HR leaders and professionals use this system to compile and store information and data regarding employees.

In a nutshell, it is an integration of information tech and human resources activities and tasks. Every HRIS has at least elementary functions, allowing data tracking and management, data entry, employee payroll, benefits, and accounting.

However, this system has evolved dramatically in the past few years and typically offers more features that make HR work much more accessible. Most organizations and companies use HRIS to help their HR teams with organization and process improvement.

Because of that, every HR practitioner should be familiar with this software and its elementary functions. Thus, HRIS covers multiple HR responsibilities, including recruitment, learning and development, performance management, and other relevant activities.

Many HR professionals disagree about the meaning of the name of this software.  Some claim that the S stands for software, while others insist it means system.

Hence, one can encounter variations when reading about HRIS: some call it HRIS software and other HRIS systems. But both terms are acceptable, although it’s safer to call it only HRIS or HRIS system.

Companies can use their own tech infrastructure to host HRIS or opt for the cloud-based option. Nevertheless, the latter is more common due to the multiple advantages, such as easier maintenance, cheapest pricing, and efficiency.

Cloud-based HRIS solutions also require no complicated installation and updates. Thanks to that, HR professionals can focus on using HRIS to speed up their activities instead of worrying about compliance or keeping the software running.

HRIS is also known as HRMS (Human Resources Management system), but all the terms have the same meaning. Nevertheless, this article will refer to it as HRIS systems.

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HRIS Product Features

Here’s what an efficient HRIS can do:

1. Database Centralization

Conducting HR tasks is much easier when everything is accessible and in one place. It saves recruiters' and managers' time looking for documents and employee information and allows them to complete their assignments faster.

A centralized database is among the most valuable features of HRIS systems. Thanks to automation, the platform assembles, stores, and shows relevant, consistent, and up-to-date information regarding teams, employees, HR procedures, policies, and strategies.

Moreover, HR practitioners can access their files, spreadsheet, and analytics with one click, making decision-making faster. HRIS systems also store confidential data on the cloud, protecting companies from potential glitches, leaks, and data loss.

Every user has an easier time navigating the platform with a centralized dashboard. That prevents data silos, record duplicates, and wasting time on manual synchronization.

2. Employee Payroll

Although many companies use a different platform to track and manage their employee payroll, HRIS has this feature, saving HR professionals from running multiple programs. But the HRIS system can take care of this process throughout every step.

It typically has various functions, including payment process automation, taxes calculation, law compliance, automatic reminders, and multiple self-service options. However, HR professionals can integrate HRIS into their current management system and accounting module.

As a result, they reduce the odds of financial and legal issues and manual errors. HR managers can also ensure employees have no worries about receiving their salaries timely or obtaining the necessary updates.

3. Employee Self-Service

HRIS systems accelerate processes by allowing workers to access and edit their personal data, such as bio, benefits, or time off. HR managers would have to spend hours updating this information daily without this option.

Moreover, self-service options empower employees by giving them more control over their data. HRIS payroll is advantageous for HR professionals because it reduces office work and administration time while boosting employee engagement.

Workers shouldn't have to spend hours writing emails back and forth, hoping to access or manage their credit or vacation days. Self-service options make processes more efficient, allowing people to modify their own information, download work-related data, and send reports.

4. Time and Absence Tracking and Management

HR managers often manage employees' attendance records, schedules, and timesheets daily. These activities also require additional personnel and effort they can spend on more meaningful assignments that add business value.

For instance, HR professionals without time and absence management platforms must track email messages with vacation and time off requests while adjusting schedules and addressing workload changes. After everything, they must export all attendance and absence data to their accounting systems, requiring more time and effort.

However, HRIS eliminates these issues by providing all-encompassing features, such as holiday tracking and management, automatic transmission, registration of timesheet entries, detailed analysis, payroll accounting integration, and staff deployment planning.

Moreover, handling time and absence sheets inadequately and unaddressed requests can cause various problems. That can affect work environment quality and employee job satisfaction.

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5. Talent Management

Human capital is among the most valuable assets of every company. Because of that, it's essential how recruiters and HR managers grow talents and manage their employees.

But talent management is challenging and includes various touch points requiring efficiency and adequate handling. HRIS helps HR professionals roll out processes more swiftly, improving recruitment, employee development, retention, and job satisfaction.

Thanks to that, companies can reduce employee turnover and cultivate happier and more productive workers. That also boosts business reputation and talent attraction.

6. Employee Performance

Business success depends on its people and employees' performance. Therefore, it's crucial to track it and address potential issues timely.

HRIS systems allow companies to assess performance reports and analytics, oversee employee accomplishments, generate reviews, and track potential errors. This software provides factual notes and suggestions regarding employees' productivity.

As a result, HR professionals and managers get a more well-rounded picture of their workers' success and potential. That enables them to optimize their employee performance management and help people address their responsibilities without hassle.

7. Employee Training

HRIS can help companies manage and schedule employee training and provide an improved experience that helps boost job satisfaction, retention, and engagement. Moreover, HR professionals can use it to plan, calculate, and monitor the impact of their employee training efforts and initiatives.

8. Succession Planning

Future leaders are the fuel that keeps a business running. Companies require efficient tech tools to plan succession and create a relevant talent pipeline.

Thanks to that, they will prepare available replacements for crucial job roles, ensuring business continuity. HRIS has functions that allow succession planning, making this process smooth and easy.

9. HRIS Integration with ATS and CRM

Even though this point might be a compilation of the previous ones, it's necessary to mention it separately. HRIS systems are versatile, and recruiters and HR managers can integrate them with other relevant applications - including applicant tracking systems - using their programming interfaces.

That way, they can move data between these platforms and synchronize every information and activity. For example, companies can integrate their HRIS with employee onboarding apps, ATS systems like Manatal, or CRM.

HRIS integration has numerous benefits, such as eliminating data silos, providing a stellar head start to new employees, improving employee experience, and maintaining high-quality data.

Benefits of HRIS Systems

HRIS systems offer various advantages, explaining why many companies and organizations implement them. 

Here’s what makes it beneficial:

  • Helps with Record-Keeping – Record-keeping is among the crucial features of every HRIS system. These platforms track and memorize the changes users make regarding employee data and activities. Thanks to that, HRIS is the beacon of truth concerning personnel data.
  • Helps with Compliance – HRIS systems collect, store, and protect data to prevent compliance issues. For instance, it saves the necessary employee information in case of fraud, thefts, misbehaviors, and accidents. Moreover, HRIS systems follow GDPR regulations to keep critical data securely and safely.
  • Increases Efficiency – HRIS systems store all data in one place, ensuring accuracy and helping HR professionals save time. However, many companies still keep their employee information in paper form. But it can be challenging to find the folder they’re looking for and identify the correct sheet, decreasing efficiency.
  • Enhances HR Strategies – Tracking data necessary to improve business and HR strategies is among the best advantages of HRIS systems. HRIS can identify company priorities and objectives to pinpoint and track critical information.
  • Provides a Self-Service Dashboard – The most efficient benefit of HRIS systems is the self-service dashboard for employees and HR managers. Thanks to that, workers can manage their data, removing pressure from HR professionals.

Types of HRIS Systems You Should Know About

The following are the five types of HRIS systems you should know.

1. Operational HRIS

Operational HRIS offers the data necessary to support the elementary, routine, and repetitive HR decisions. They typically collect info such as job position details, workers’ records, and employee performance insights.

Thanks to that, managers can handle performance management, internal staff changes, recruitment, and promotions. These systems are advantageous as they support the standard human resources functions.

For instance, they are ideal for companies that spend too much time on tedious people management assignments or looking for disorganized records, spreadsheets, and files. An operational HRIS system would help them organize their activities and increase efficiency.

Employee Information Systems and Position Control Systems are the two principal subdivisions of this type. The former helps track and store employees’ data and records, while the latter helps identify every job position in a company.

2. Tactical HRIS

Tactical HRIS systems center around the use and allocation of resources concerning recruitment, employee compensation, training, time off, etc. Hence, they are helpful for high-risk decision-making and job analytics.

However, these systems may also handle data regarding government requirements, competition, or union info. Tactical HRIS platforms are a good solution for companies that need supper with macro-level decisions, as that would help them understand how to use their resources efficiently.

Moreover, these systems typically include job analysis and design systems, recruiting information systems, compensation and benefits systems, and training and development systems. Each of these helps companies understand how to establish more efficient strategies and leverage their resources.

3. Strategic HRIS

The name of this system already implies it helps companies with their strategic decision-making and analysis. They help HR practitioners with workforce planning and setting their objectives.

But these systems are also beneficial for raising awareness about accessible labor resources by handling data, such as operations budgets or industry information. They are the best solutions for companies planning to scale up strategically or make well-informed decisions about a company’s future.

4. Comprehensive HRIS

Many HR professionals perceive the comprehensive HRIS as a combination of strategic, tactical, and operational systems. These systems are a streamlined database providing easy management and reviews of various HR tasks, such as employee data, job analysis, skills inventory, and performance management.

Therefore, comprehensive HRIS stores and shows information necessary to carry out almost every HR function. Although these systems are typically more expensive, they can transform HR departments and help them run more efficiently.

5. Limited Function HRIS

Unlike other HRIS systems, this one only has one purpose and restricted power. Hence, they are rarely helpful for strategic management and planning.

However, these platforms are more concrete, and their function depends on the specific system. For instance, a company might use HRIS designed for employee benefits management or training.

Therefore, the limited function HRIS is ideal for small businesses and companies due to being cheaper and easier to handle. Thus, only one manager is enough to run this system.

Although HRIS systems are diverse and have seven types, organizations should decide which one to use depending on their business objectives and employee needs. They should also consider the HR areas requiring more support, which would help them target specific ROI.

It’s crucial to know your pain points and needs to understand what HRIS system can address them. You should also consider HRIS integration and whether you can connect your software with other relevant apps.

For example, these systems are more efficient when you combine them with your ATS, which would equip you with the features needed for efficient recruitment and employee management.

KNOW MORE ABOUT MANATAL: Manatal as one of the Top-Rated HR Software in 2021

You might think that running two software types simultaneously is challenging. However, Manatal’s API allows a smooth HRIS integration and seamless data sharing between two systems.

Start your 14-day Free Trial today and discover how Manatal can improve your recruitment.

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