Importance of HRIS

What are human resource information systems (HRIS)? Simply, an HRIS is a software that holds a digital record of people's data. Human Resource Information Systems (HRIS) have revolutionized the way HR operations are managed. They help companies meet HR initiatives and increase productivity. HRIS also helps companies streamline their people processes while gaining better insight into company and employee performance via people data.

The Role of HRIS

An HRIS centralizes employee data management. Trade in piles of paperwork for a digital alternative. HR leaders can easily track employee performance, monitor attendance, and manage benefits.

An HRIS also plays a crucial role in ensuring compliance with labor laws and regulations. By automating payroll calculations and tax deductions, an HRIS reduces the chances of errors and ensures that employees are paid accurately and on time. Additionally, HRIS can generate reports and analytics that help businesses identify trends, spot potential issues, and make data-driven decisions.

Key Features of HRIS

An effective HRIS has:

• Employee Data Management: HRIS stores and manages employee information. It includes personal details, employment history, performance reviews, training records, and more. This feature allows HR professionals to easily access and update employee data, ensuring accuracy and consistency across the organization.
• Payroll: HRIS automates the payroll process, making it easier to calculate wages, deductions, and taxes. It ensures that employees are paid accurately and on time, while also generating payroll reports for record-keeping and compliance purposes.
• Time and Attendance Tracking: HRIS allows businesses to track employee attendance, manage leave requests, and generate timesheets. It eliminates the need for manual timekeeping, reduces errors, and provides real-time insights into employee attendance patterns.
• Benefits Administration: HRIS simplifies the management of employee benefits, such as health insurance, retirement plans, and vacation policies. It enables employees to access and update their benefit information, while also assisting HR professionals in administering and tracking benefit programs.

Depending on the system, additional modules may include performance management, recruitment, training, and succession planning.

Benefits of HRIS in HR Operations

The adoption of an HRIS brings several benefits to HR operations.

• Efficiency and Productivity: An HRIS automates repetitive HR tasks, such as data entry, report generation, and payroll calculations. This frees up HR professionals' time, allowing them to focus on strategic initiatives and value-added activities.
• Data Accuracy and Compliance: Manual processes are prone to errors, leading to inaccurate data and potential compliance issues. An HRIS ensures data accuracy by eliminating human errors and providing validation checks. It also helps organizations stay compliant with labor laws and regulations by automating payroll calculations and generating required reports.
• Improved Decision-Making: An HRIS provides HR professionals with real-time access to data and analytics. Using HRIS data, leadersThey can generate reports on various HR metrics, such as turnover rates, employee performance, and training needs. This data empowers HR professionals to make data-driven decisions, identify trends, and proactively address potential issues.
• Enhanced Employee Experience: An HRIS streamlines processes related to employee self-service, such as leave requests, benefits enrollment, and accessing personal information. Employees can easily update their information, view payslips, and access company policies, leading to a better employee experience.
• Cost Savings: While there is an initial investment in implementing an HRIS, the long-term cost savings can be significant. An HRIS eliminates the need for manual paperwork, reduces administrative overheads, minimizes errors, and optimizes resource allocation.

By embracing HRIS, organizations can unlock new levels of efficiency, compliance, and strategic decision-making.

About Arbor

Arbor enables leaders to easily capture, analyze, and benchmark workforce outcomes. Arbor integrates with existing HRIS, along with other HR systems, to uncover organizational trends and workforce insights. Get more out of your HRIS with Arbor’s detailed analytics and insights, employee surveys, and industry-specific benchmarks.