In today's rapidly changing business environment, information is power. The capability to efficiently manage and interpret data has given companies a significant edge over their competition. Nowhere is this truer than in the realm of human resources (HR).
"To win in the marketplace you must first win in the workplace." These words, spoken by Doug Conant, a business leader, emphasise employees' crucial role in a company's success. It's the reason why HR management has evolved from mere administrative tasks to being a strategic partner in business growth. One tool at the forefront of this transformation is the human resource information system (HRIS).
In this article, we tell you everything to know about HRIS, its features and how it could benefit your organisation, if you are planning a global expansion.
HRIS is a software solution that integrates various HR functions, such as recruitment, payroll, performance reviews and remote employee management, into a unified system. This digital platform simplifies data retrieval, ensures accuracy and aids in decision-making processes related to human resources.
In essence, the HRIS meaning revolves around its ability to streamline HR operations and make them more efficient. With simplified tasks, there is a growing popularity of companies relying on HRIS models to streamline their operations.
As per market research, the HRIS software market is estimated to grow from $15.59 billion in 2022 to $33.57 billion in 2028 globally.
Examples of HRIS System
Several leading software solutions are available in the market each catering to different business needs and sizes. Examples of popular HRIS systems include Workday, BambooHR and Oracle's PeopleSoft. These platforms offer a comprehensive suite of tools to aid HR professionals in their daily tasks.
Features of HRIS
When examining an HRIS, you should expect several key features:
1. Employee Self-Service (ESS): Employees can easily view and update their personal information if the platform has an ESS option. This reduces HR workload and empowers employees.
2. Payroll Management: Simplifies the processing of employee payments, ensuring accuracy and compliance with local tax regulations. It can even keep track of paying your international contractors.
3. Recruitment and Applicant Tracking: Streamlines the hiring process by managing job postings, applications and interviews in one place. Nearly 99% of the Fortune 500 companies use one or more of such systems.
4. Benefits Administration: Provides a platform for HR to manage employee benefits, from health insurance to vacation days.
5. Training and Development: Assists in monitoring employee training progress and certifications, ensuring workforce skills are up-to-date.
6. Reporting and Analytics: Offers insights into HR metrics, allowing for data-driven decision-making.
Benefits of HRIS
Why are HRIS systems important? The answer lies in its many benefits. For starters, it saves considerable time and cost by automating routine tasks and reducing manual paperwork.
Let us understand the other benefits in more detail:
1. Efficiency and Productivity: HRIS follows a streamlined process that reduces manual and paper-based processes. It makes operations faster and more efficient. Time-consuming tasks such as payroll processing, attendance tracking and benefits administration can be automated, freeing up HR personnel for more strategic roles.
A survey by CareerBuilder finds HR managers who do not fully automate lose an average of 14 hours a week manually completing tasks that could be automated.
2. Data Accuracy and Integrity: Automation minimises the chances of human errors that can occur during manual data entry or calculations. Besides, having a single repository for all HR data ensures consistency, reduces redundancy and ensures that all departments work with the most up-to-date information.
3. Improved Decision Making: The analytics and reporting features of an HRIS can provide vital metrics about employee performance, turnover rates, recruitment efficiency and more. This aids leaders in making informed decisions.
Over time, HRIS can help identify patterns and trends related to workforce productivity, absenteeism and more, allowing for proactive solutions. The use of HR technology has helped 44% of organisations gain greater insights into employees.
4. Enhanced Employee Experience: Employees can manage their personal details, check payroll information, request leaves and more without going through HR for everything. With clear and efficient communication channels within HRIS software enhance transparency between management and staff.
5. Cost Savings: Digital data storage and management can significantly save paper, printing and storage. And as HR processes get streamlined, there's a reduction in the need for manual intervention, which can lead to labour cost savings.
6. Regulatory Compliance: HRIS systems often update automatically to remain compliant with changing labour laws, reducing non-compliance risk.
With data stored and organised in a centralised system, preparing for audits or inspections also becomes more straightforward.
7. Security: Advanced HRIS systems have strong encryption and security measures to protect sensitive employee information. Role-based access ensures that employees can only access data pertinent to their roles, adding an extra layer of security.
8. Scalability: As businesses grow, their HR needs evolve. A good HRIS system can scale in functionality to accommodate the expanding needs of a growing workforce.
Why Are HRIS Systems Important?
In the words of Richard Branson, "Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients." The sentiment perfectly encapsulates why HRIS systems are important.
An HRIS ensures that employee management, the backbone of any business, operates seamlessly. It fosters an environment where HR professionals can focus on strategic initiatives rather than administrative tasks, driving employee satisfaction and, in turn, customer satisfaction.
As businesses grow and the complexities of managing human resources expand, learning the depth of HRIS meaning becomes indispensable. It's not just about digitisation but about empowering HR to play a more strategic role in a company's success. For global companies looking to be ahead of the curve, investing in a robust HRIS system is not just a good move—it's essential.
Rely on Rapid and EOR With All HRIS Features
Navigating the dynamic business landscape of India requires not only knowledge but deep-rooted experience and proficiency. That's where Rapid, our EOR service, stands out. With 20 years of entrenched local experience in India, we've seen the evolution, challenges, and growth stories unfold right before us. Our strength lies in our expert staff, whose collective wisdom ensures that your business always remains a step ahead.
From intricate payroll management that resonates with the diverse workforce needs to customised contracts that cater to specific business requirements, we've got you covered. Moreover, in a country where regulatory compliance is paramount and often complex, our services ensure you're always aligned with the ever-changing norms.
But what truly sets Rapid apart is our integrated HR platform, seamlessly embedding all HRIS features. This ensures that while our hands-on team takes care of your HR intricacies, you also have the power of technology at your fingertips, providing real-time data, analytics and more.
So, why settle for anything less? Book a demo with us today.