Human Resource Information System | 5 mins read

Everything You Need to Know About Human Resource Information Systems

everything you need to know about human resource information systems 1626450026 3615
Lauren Christiansen

By Lauren Christiansen

The Benefits of Human Resource Information Systems

So much to do; so little time. That's the motto of most employees who work in the HR department. Between applicant tracking, performance management, and monitoring employee data, HR professionals have their hands full. Collecting and maintaining all relevant HR data is also a complex task, as it is considered sensitive information. Social security numbers, tax documents, and any other employee information must be well-organized and secure.

Manual approaches to HR data management can result in human error and audits. So, how can small businesses streamline all HR functions and ensure data is in one place? That's where a human resource information system comes in.

An HRIS system is an automated information system that maximizes efficiency in the HR department. This software solution enables teams and managers to share and extract data from one centralized location. From time tracking to payroll to employee onboarding, HR software handles it all. A small business can then leverage human capital to increase profits rather than spending time on manual tasks. Read ahead to learn the benefits of self-service HR information systems and how they streamline HR processes.

1. Human Resource Information Systems Improve Reporting

One of the best benefits of HRIS systems is their capacity to quickly generate reports. Because all HR data is in one database, owners can run any number of reports related to HR functions. To illustrate, an owner needs to hire more sales employees. He runs a report that contains historical data of other applicants with sales skills. He then picks the top candidates and schedules interviews.

Or, the owner may run a report of all wages paid to workers, separated by department. He then uses this information to optimize the budgeting process moving forward. In short, reporting helps HR managers and small business owners improve decision-making. They can use historical data as concrete evidence to problem-solve in a way that benefits the company. This helps to save money and resources, which increases profits.

  • Recruiting Report - Analyzes hiring time, hiring cost, retention, resignation, and rehiring
  • Attendance Report - Measures attendance based on specific queries such as day, week, month, or employee
  • Leave Report - Provide details on employee absences and how much work hours are missed during each individual's leave time - Measures employee performance based on specific metrics
  • Performance Management Report - Measures performance based on specific KPIs
  • Compensation Report - Helps to implement salaries, negotiations, allocation of allowances, overtime, flexible work policies, and more

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2. Human Resource Information Systems Centralize Data

HRIS software places all core HR data in one centralized database. This includes data related to onboarding procedures, applicant paperwork, and tax forms. A human resources information system also holds any salary or incentive information for each employee. Workforce management documents such as performance reviews and disciplinary measures are also held in information systems.

With all data in one place, employees can quickly search and find what they need. This improves employee engagement and morale. It also saves a lot of time and enables HR professionals to focus on more critical tasks.

3. Human Resource Information Systems Streamline Recruitment Process

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An HRIS system comes with a user-friendly interface that employees and applicants can easily access and navigate. According to surveys, recruiting is much quicker and effective with the help of a resource information system. Applicants can search through the system to find open positions, upload resumes, and contact the HR team. This can all be performed through an off-site computer or laptop.

An applicant tracking system maintains an audit trail of all candidates who applied to positions in the past. Hiring managers can peruse the database to find potential candidates if a new position opens up. They can use numerous search queries such as location, education level, or expertise to do so. Furthermore, cloud-based software solutions make sure current workers can electronically apply for new jobs.

  • 73% of candidates are passive job seekers
  • Each vacancy costs an average organization $500 per day
  • On average, each corporate offer attracts 250 resumes
  • 48% of companies say their top quality hires come from employee referrals
  • 52% of candidates say an attractive benefits and compensation package are the most attractive part of a job post

4. Human Resource Information Systems Enhance Benefits Administration

Maintaining data relevant to the benefits administration (employee benefits) is a critical task for HR professionals. Nowadays, employees should be able to enroll in payroll benefits or health insurance from their computers. Employee self-service functionality enables workers to monitor and update existing coverage whenever necessary. Users can also change their dependents or update contact information. A self-service resources information system administers benefits with virtually no human interaction, which saves time and resources.

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Try it free for 14 days.

5. Human Resource Information Systems Improves Employee Engagement

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Since the digital revolution, employees want to feel in control of their personal information. With more remote teams than ever before, workers need an easy way to access sensitive data. An optimized HRIS system allows employees to monitor time attendance data, see benefits, update information, and apply for new jobs.

Internally, HR teams don't need to help employees find this data, which minimizes their workload. They can focus on recruiting the best candidates, preparing for payroll time, and solving problems. All of this makes for a much better employee experience. A small business that invests in resource management solutions will improve morale, lower turnover, and enhance the company culture.

Key Takeaways for Human Resource Information Systems

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In conclusion, here are the top benefits of human resource information systems -

  • A human resource management solution streamlines reporting and centralizes employee data. Better reporting improves decision-making, while centralization ensures easy accessibility and better data sharing.
  • A human capital management solution streamlines the recruiting process from start to finish. Employees can easily search for new jobs, apply, and contact HR. HR professionals can use search queries to look for the right candidates.
  • A human resource information solution enhances the benefits administration. HR teams can manage and administer payroll benefits. Employees can monitor and update existing coverage on their own.
  • A capital management platform improves employee engagement. Employees can access and update the information they need when required. HR teams have an easier workload, which allows them to focus on more critical tasks.

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