Overview of the human resources information system

HRIS systems—or human resources information systems—were among the first commercial software solutions to be developed in the 1980s. Why? HR was then—and remains today—one of the most admin-heavy departments in any organisation. Human resources staff are burdened not only with enormous amounts of paperwork and record-keeping, but they are also the stewards of some of the most precious and vulnerable information about their workforce and applicants.

Technology has evolved since then. Modern HRIS systems automate workflows, integrate feedback, adjust reporting structures in real time, and are increasingly enabled by AI to deliver intelligent recommendations, detect irregularities, and personalise user experiences. And by delivering consumer-grade user experiences and flexible functionality, modern HRIS systems are as efficient and user-friendly as they are powerful and agile.

The best HRIS software is delivered in the cloud, which provides an even wider range of benefits including greater data storage, enhanced security, and smoother integration with complementary applications such as payroll, applicant tracking, and other HR systems.

Today, AI in HR is transforming HRIS capabilities by enabling predictive insights, intelligent automation, and leveraging interfaces that streamline tasks such as onboarding, performance reviews, and employee service.

Definition of HRIS

HRIS stands for human resources information system, a software solution that helps companies manage and automate core HR processes and support benefits administration, time and attendance, payroll, and other workflows, as well as the storage of employee data, such as personal, demographic, and remuneration information.

HRIS vs. HRMS vs. HCM

HCM is a broad term that encompasses the practices, policies, processes, and software that an organisation uses to manage its workforce, from hire to retire. An HCM suite is often referred to as a human resources management system (HRMS), and includes HRIS software.

An HRIS system uses an employee database to support core HR processes that are more linear and quantitative in nature, such as payroll processing or managing time and attendance. In comparison, HRMS refers to a more overarching software solution that contains an HRIS, but also incorporates more qualitative and complex functionality involved in talent management.

For example, an HRIS can help to automate and streamline processes such as employee timekeeping, and when this data is integrated into an HRMS system—the timekeeping data can be analysed to improve productivity and planning—and in turn—even to help more efficiently automate tasks within the HRIS.

Knowing which of these software solutions is best for you is not actually as confusing as it may sound. It’s simply a matter of taking an unflinching look at where your company is now, and where you’d like to be in the longer term. And then choosing HR solutions that can serve you today and grow with you tomorrow.

What do HR information systems do?

The best cloud-based HRIS solutions support a variety of HR processes and interactions. The technology provides intelligent automation of workflows across the business, including:

Benefits administration

• Automated benefits administration
• Self-service capabilities for employees to access, edit, and learn about benefits

Time and attendance

• Accurate management of employee absences
• Increase administrative efficiency with time profiles to determine employee holidays, work schedules, and premiums.
• Automatic calculations of time and pay by employee profile

Embedded localisation

• Adapt to country-specific business practices and laws with automatic legal and regulatory changes
• Comprehensive inventory of globalisation and localisation requirements for individual countries

Employee self-services

• Self-service capabilities that increase workforce productivity
• Integrated HR data on a single platform
• Trackable key HR information based on country-specific requirements
• Provide employees with a personalised profile page, where they can manage and view benefits, request leave, and more

Organisational structures

• Analytics for real-time insight into the entire workforce
• Identify critical positions and promptly make workforce adjustments to address gaps
• Visualise organisational structures

Benefits of a cloud HRIS system

In addition to the basic functionality of a modern HRIS, cloud-based systems are more easily integrated with your existing systems. They are scalable and can more readily be enhanced by new innovations and security features.

Below are just a few of the common benefits of an integrated cloud HRIS system:

• Makes HR administration faster and more accurate: When dealing with people’s livelihoods, there is no margin for error. With its ability to automate and streamline administrative tasks, HRIS software can free HR teams from the delays and inaccuracies caused by manual and paper-based systems.
• Improves employee experience: Employers sometimes forget how important it is to their teams to be able to see the status of their benefits, payments, and leave. HRIS tools enable employees to directly access their personal information, generate reports, and submit requests—all without the inconvenience and time required to go through the HR department.
• Improves efficiency: HRIS solutions offer a wide range of self-service tools that greatly minimise the need for email and paper-based forms and approval processes. Schedules, workflows, time-off requests, and more—can be automated and managed in real time, and on the go.
• Supports compliance efforts: With an increase in remote working and a cultural shift towards greater sensitivity and litigation, businesses need to ensure they are on the right side of global labour and employment regulations. Cloud HRIS helps to ensure that all HR activities fall within the boundaries of compliance and help to support their workforces.
• Keeps things secure: Within HR files are some of the most sensitive and valuable data in your company—including employees’ medical and financial records and details. In the past, when this data was stored on laptops or unsecured databases, there was an ever-present risk of compromise. Today’s integrated HRIS systems have advanced security protocols built in to help minimise cybersecurity risks.

How cloud HRIS integration supports core HR processes

While HRIS systems help to centralise and streamline HR processes and administration, there are many other core functions that are going on simultaneously such as recruitment, training, and planning. And you don’t have to be an HR specialist to see how useful it can be for all these essential functions to be unified and centralised. Yet, when organisations are working with legacy systems and disconnected HR software applications, they are forced to use manual processes to search for tools and information across organisational silos.

The best cloud HRIS systems not only allow for integration with your core ERP, they are designed for it. For example, a cloud ERP system manages a wide range of day-to-day business activities and is built to integrate a multitude of disparate business processes. By unifying cross-business data, ERPs provide a single source of truth and ensure reliable data integrity. So when your core HR processes and HRIS are integrated with the speed and analytical capacity of a modern AI-powered ERP—you get the best of both worlds.

HRIS examples in action

Just a few years ago, it was mostly the largest organisations that made use of HRIS solutions. But as integrated cloud-based systems grow in popularity, it becomes increasingly feasible for smaller—and growing—organisations to leverage the benefits and efficiencies of an HRIS.

Here are some examples of companies that have streamlined HR processes using an HRIS:

• Sun Communities, one of the world’s largest real estate investment trusts, transformed its HR operations with SAP SuccessFactors to support over 3,800 employees across 670+ properties. The company streamlined induction, improved compliance, and created a more connected and motivated workforce.
• Volkswagen, a global automotive leader, harmonised its HR processes across a fragmented landscape onto a unified platform. More than 40 countries are now supported with localised core HR and compliance.

Explore HRIS software today

Modern businesses are seeking a unified, global, core HR solution—one that provides consumer-grade user experiences and supports real-time data analysis and automation. As workforces become more distributed, HRIS software needs to globalise along with them by providing thorough localisation and compliance across multiple countries. And as business models shift and evolve, companies require the agility and simplicity provided by a broad range of truly relevant and powerful prebuilds, helping them to implement new processes and applications reliably and quickly.

HRIS FAQs