What is an HRIS?
A human resources information system (HRIS) helps companies manage and automate core HR processes. These HR software systems support benefits administration, time and attendance, payroll, and other workflows, as well as the storage of employee data, such as personal, demographic, and compensation information.
The technology replaces time-consuming paper-based processes and complicated spreadsheets. By automating many of these workflows, an HRIS minimizes human error and reduces repetitive tasks so employees can focus on higher value work.
With a centralized, real-time data model and automated processes, HR professionals, managers, and employees can use the HRIS to quickly access the information they need for an efficient and accurate result. By streamlining employee data management and associated processes, HRIS software can help businesses save time and money.
What does an HRIS do?
An HRIS manages and automates core HR processes. The system extends across the entire employee lifecycle, collecting and storing HR and other data to help inform decisions and support interactive workflows.
For example, an employee accesses the system to request time off. The action automatically flows through the HRIS to the manager for review and approval.
HRIS data is stored securely, with automated compliance management processes that satisfy corporate, national, and international requirements. Regulatory updates are implemented automatically to support statutory reporting standards.
The streamlined and automated workflows support employees across the entire business:
- HR professionals can post job requisitions, access and edit employee information, and help onboard new employees.
- Managers can oversee team structure, track time and absences, monitor and request changes to salaries for team members, and approve vacation and time off requests.
- Employees can edit personal data, view organizational charts, input time worked, and request time off.
Capabilities of an HRIS system
The capabilities of a human resources information system support a variety of HR processes and interactions. The technology provides smart automation of workflows across system and business functions, including:
People and transactions
- Self-service capabilities to increase workforce productivity
- Trackable key HR information based on country-specific requirements
- Embedded localization for global compliance and HR best practices
- Analytics for real-time insight to the entire workforce
- Streamlined recruitment to support business objectives and succession planning
- Learning strategies
- Automated benefits administration
- Self-serve capabilities for employees to access, edit, and learn about benefits
- Consolidated views of the compliance landscape including corporate and collective agreements, and local employment laws
- Holiday calendars, vacation accruals, and the associated business rules
- Automatic calculations of time and pay by employee profile
HCM and ERP integration: The best of both worlds
HCM/ERP integration allows these two powerful enterprise software systems to synchronize and connect in the cloud. ERP systems manage a wide range of day-to-day business activities including accounting, procurement, supply chain, and many more. ERP systems are built to integrate a multitude of business processes and strengthen the flow of data between them. By unifying cross-business data, ERPs provide a single source of truth and ensure reliable data integrity. When the kind of data and insights held within a best-in-class HCM are integrated with the speed and analytical capacity of a modern AI-powered ERP – businesses get the best of both worlds.
The evolution of human resources information systems
Organizations began to centralize employee data in the 1960s and 1970s. This new model supported better record keeping as well as the ability to more easily meet regulatory requirements. The central data repository was stored on large mainframe computers, with transactional processing (if any existed) limited to payroll.
Human resources information systems came into use in the 1980s, with the move from mainframe systems to client server technology. This made the systems more affordable while providing basic analytic tools for the business.
Since then, the technology has evolved. Instead of focusing on transactional HR processes, modern systems support a more interactive model that emphasizes the employee experience for HR professionals, managers, and workers.
Today, an HRIS automates workflows, leveraging artificial intelligence (AI) to handle repetitive, time-consuming tasks. These systems can integrate feedback and automatically adjust reporting structures based on changes in business rules and regulatory compliance while delivering an efficient and positive experience to all employees that interact with it.
HRIS software can be implemented on premise or in the cloud, with modern systems predominantly housed in a private or public cloud. A cloud platform provides a range of benefits including larger data storage capacities, stronger security, and easier integration with complementary applications such as payroll, applicant tracking, and other HR systems.
Who uses an HRIS?
Historically, organizations with a medium- to large-sized employee base mostly benefited from a human resources information system. Today, however, thanks to minimal infrastructure and implementation costs with cloud-hosted systems, smaller-growing organizations are now able to leverage the benefits and efficiencies of an HRIS.
Here are some examples of companies around the world and across all industries that are relying on an HRIS to streamline HR processes.
- Growmark, serving farming businesses across the United States and Canada, runs efficient HR processes and attracts and nurtures the talent it needs to help its customers succeed – even while facing the challenges posed by the COVID-19 pandemic.
- Kmart Group, operating over 500 stores across Australia, New Zealand, Hong Kong, China, Indonesia, India, and Bangladesh, has transformed the team member experience, increased self-services, and automated and optimized processes for greater efficiency.
Human resources information systems (HRIS), human resources management systems (HRMS), and human capital management (HCM) are the terms that are often used interchangeably but have a few key differences. While HRIS handles core HR processes, an HRMS (Human Resource Management System) includes these capabilities in addition to talent management, such as learning, development, and succession planning. More generally, HCM (Human Capital Management) is used to describe the broad set of practices and software to manage an organization’s workforce.
Growing businesses and those with a medium- to large-sized employee base, especially across different states, countries, or continents, can get significant value from the centralized, real-time data model and automated workflows of an HRIS.
With an HRIS, a company can easily comply with local data protection and employment regulations. A localized, regional user experience supports easy access for HR professionals, managers, and employees around the world.
An HRIS benefits everyone within an organization including HR personnel, managers, and every employee. Automated workflows and centralized, real-time data create efficiencies, which in turn augment productivity across the organization.
The system can resolve many persistent business problems including:
- Manual, time-consuming workflows for HR personnel and employees
- Lack of continuity across systems with siloed data stores
- Stale and outdated HR and employee information
- Limited alignment of HR strategy with corporate strategy
- Inconsistent regulatory oversight for corporate and government employment laws
An HRIS must be resilient and able to adapt to the changing needs of the business. Additional considerations include:
- Proper management of the data transfer from legacy systems to the HRIS
- Scalability of the HRIS as the organization grows
- Compliance with regional and global regulatory requirements
- Rapid adoption with well-trained employees to leverage the full value of the HRIS once live
SAP Insights Newsletter
Gain key insights by subscribing to our newsletter.