What is an HRIS (Human Resources Information System)?

What is an HRIS (Human Resources Information System)?

What is an HRIS (Human Resources Information System)?

January 19, 2023


Picture of INS Global



Picture of INS Global



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Key Takeaways

  1. An HRIS, or Human Resources Information System, is a piece of software that manages and streamlines HR tasks for both managers and employees
  2. Different HRIS platforms will offer a greater or lesser extent of operation support.
  3. They may also help track the way that employees grow, providing managers with key data for promotion or guidance.

An HRIS system may be the perfect tool to boost your HR productivity and ensure compliance with labor laws both at home and abroad. Traditional HR methods involve multiple personnel and can consume a large amount of your employees’ time in order to maintain services with accuracy. In contrast, HRIS allows you to export most day-to-day tasks to the platform so you can focus on what matters most to your business growth.

More and more seen as a key element in data management best practices, it may be the right choice for you. Here, we lay out the definition and benefits of HRIS as the perfect way to ensure proper use of your data assets. We also explore how you can use this tool to better expand your operations globally.


What is an HRIS Platform, and What are the Functions Most Commonly Associated with One?   


An HRIS, or Human Resources Information System, is a piece of software that manages and streamlines HR tasks for both managers and employees. It is just one of the many forms of Human Capital Management (HCM) available to international businesses. Often seen as an “all-in-one HR platform”, an HRIS provides an easy way to take care of many of the most problematic HR functions with speed and efficacy.

These platforms combine modern machine learning and the work of data scientists to provide a simplified management system for both data and staff. The goal is to centralize information that can be used by HR, employers, and employee independently.

There are many different available HRIS options, some are simply ways to organize data, while other are more complete data analysis and data integration systems. Different platforms will offer a greater or lesser extent of operation support.

Commonly, an HRIS will manage some or all of the following:


–         Scheduling

–         Timesheets

–         Data management

–         Data storage

–         Reports and Analytics

–         Leave management

–         Benefits management

–         Payroll

–         Tax and Contributions calculation


It may also include:


–         Recruitment and Selection

–         Onboarding

–         Elements of performance tracking

–         Data modelling


As many of these tasks overlap with everyday management tasks, an HRIS benefits multiple areas of company workflow. Likewise, employees can benefit from the security and efficiency of automated systems when dealing with their various requests or requirements.


How Can an HRIS Help Your Company Manage Employees?


Recent studies suggest upwards of half of companies now use some form of a digital HR management system. These digital platforms offer many advantages to companies looking to improve the way they manage their employees’ needs and performance.

An HRIS integrates data collected through existing company structures, streamlines processes, and offers new ways to support employees.

The platform may also help track the way that employees grow, providing managers with a clear idea of the right employees to promote or guide in their company role.


HRIS System vs. HRIS Software vs. HRMS vs. HCM: A Variety of Terms  


In addition to HRIS, this type of data management solution may be known by various other names. However, these other names suggest slightly different focuses.

HRMS refers to a Human Resources management system. This term is often used alongside HRIS, but it refers to the system providing more significant support regarding employee talent and performance management.

Another commonly seen variant is an HCM, or Human Capital Management system. These systems typically offer a greater depth of services and are focused on HR support and its role in a long-term strategy. Within an HCM system, every aspect of an employee’s job and performance is covered from day one to retirement and beyond.


What are the Advantages and Disadvantages of an HRIS?


The Advantages




Increases productivity

When not held back by day-to-day repetitive tasks, your team can grow and show results in a much faster timeframe. By increasing the independence of your general staff, you also free up HR time to work proactively on problem solving.

Reduces paperwork requirements

Through a streamlined system, your employees are less bogged down by fewer administrative hurdles. Simple tasks like leave requests or expenses can be dealt with at source, reducing the chance of complication.

Improves worker independence

Employees can play a greater part in the functioning of administrative necessities by bringing simple HR tasks into their own workflow.

Improves Compliance Security

With all necessary employee data kept in a single digital space, it’s easier and quicker to ensure that you meet every relevant local and global labor requirement.

The best HRIS or HCM software will take into account all relevant data governance laws wherever you are working.

Provides long-term data management

With no need for cumbersome paper documents, your business can store data for as long as it needs. This leaves you with all the backup you need in case of audits or labor disputes.


The Disadvantages


However, an HRIS may also…


Increase company costs

A professionally managed HRIS or related system can be expensive, so you must match any system to your needs.

Not remove the possibility of human error

Data entry and management will still require human interaction, so you’ll have to keep an eye on how it’s used.

Put employee or company data at risk

In today’s world of industrial hacking, digital data requires as much as, if not more, protection than traditional record keeping.

Increase specialized staffing requirements

Having the right staff to run an HRIS internally may mean hiring expensive HR experts.

Require integration time

An HRIS requires you to spend time integrating your current systems for them to run as efficiently as possible.

As another data management process, this could mean more lengthy training if you choose to run it in-house.


When is it Time to Get an HRIS for Your Business?         


Once you’ve answered the question of how to make the most of an HRIS, systems like these can be tough to implement if not done correctly or at the right time. These kinds of systems will best serve companies with enough employees that managing daily tasks for each of them becomes burdensome.

For companies with employees based overseas or those looking to expand, having professional guidance and compliance assurance can be the perfect way to grow safely. These professionals take care of the necessary labor regulations affecting different countries you operate in. By combining it will a tech-based solution like an HRIS platform, you provides benefits to your company easily and cost-efficiently.

In addition, outsourcing HR needs to a third-party company that provides HRIS services can help reduce the likelihood of needing specialized staff to keep data securely. Thus, this type of data management platform becomes more cost-efficient for smaller companies.