What is HRIS?
Definition and scope of HRIS
A Human Resources Information System, or HRIS, is a digital solution that is used to manage, store, and process employee information. Essentially, HR teams use an HRIS to work more efficiently and make more data-driven decisions. HRIS helps HR teams to provide a better service to the people they manage. Core features and functionalities of HRIS In most cases, an HRIS includes the basic features needed for end-to-end HR management:
- Employee data management
- Benefits administration
- Payroll processing
- Time and attendance management
- Reporting and analytics
- Employee self-service
Key Differences Between HRIS, HRMS, and HCM
Benefits of Implementing an HRIS System
Using an HRIS has multiple benefits for the organization, HR, and the employee. Working with this kind of software is interesting for all kind and size of activity and it makes a big difference for medium and large organizations. Managing basic employee information in Excel becomes cumbersome at this point and simple procedures like approving employee time off need to be standardized. Some of the main benefits of working with an HRIS:
- Improved record-keeping: An HRIS is a record-keeping system that keeps track of changes to anything related to employees. As such, the HRIS can be seen as the single source of truth regarding personnel data.
- Compliance: Some employee data is collected and stored for compliance reasons. Think, for instance, of material for the identification of employees in case of theft, fraud, or other misbehaviours, first contact information in case of emergency, citizens identification information for the tax office… All these data have to be stored safely and securely, in line with GDPR regulations.
- Efficiency: Having all this information stored in one place benefits accuracy and saves time.
- HR strategy: The HRIS permits the tracking of data required to advance the HR and business strategy.
- Self-service HR: Another benefit of the HR information system is its ability to offer self-service HR to employees and managers. This enables employees to be more autonomous and manage (most of) their own affairs, like updating their information or requesting leave.
- An improved employee experience: When done right, the self-service opportunities and easy access to HR information that an HRIS offers can positively impact your digital employee experience and, with it, your overall EX.
Streamlining payroll and employee data management
All relevant information for the payroll process can be stored in the HRIS: hours worked, salary, benefits and tax information. This ensure a payroll calculation based on up-to-date and accurate data.
Enhancing compliance and reporting capabilities
HRIS payroll systems are designed to comply with local payroll regulations. This includes generating reports that meet statutory requirements and submitting withholdings on time.
Improving employee engagement and productivity
When done right, the self-service opportunities and easy access to HR information that an HRIS offers can positively impact your digital employee experience and, with it, foster engagement and productivity.
How to Choose the Right HRIS for Your Business
Key criteria to evaluate HRIS solutions
Here are some key criteria for choosing a HRIS:
- user experience,
- reporting capabilities,
- total cost of ownership,
- product roadmap,
- integration capabilities,
- customer support
Cloud-based HRIS vs on-premise HRIS: Pros and cons
As with all applications, the cloud has made significant progress in recent years. But theoretically, the choice between a “cloud” and “in house” solution still exists. The advantage of a Cloud solution is that it does not require any internal resources to be implemented. No need for servers or a dedicated IT department. This represents a significant saving.
On the other hand, the cloud solution will generally be less customizable than the “in house” solution.
Steps to Successfully Implement an HRIS
Planning and assessing organizational needs
Before starting to deploy an HRIS, it is necessary to define the organizational needs precisely. What data must be managed? What important functionalities must be implemented? What will the validation workflows be?… The answers to these questions will allow the HRIS to be correctly configured during its installation.
Training staff and ensuring seamless integration
Training the teams is a crucial step in the implementation of an HRIS. It will allow a rapid and smooth adoption of the new system.
Common Challenges When Adopting HRIS
Data migration challenges and best practices
Data migration challenges and best practices The first step in data migration is to define the scope and objectives of the project. This means identifying the data sources, types, formats, volumes, and dependencies that need to be migrated, as well as the business requirements, expectations, and outcomes that the new system should deliver.
The next step in data migration is to design the data migration architecture, a technical framework and methodology used to perform the data migration. This architecture should include components such as data extraction tools, transformation rules and logic, data loading tools, and validation and testing procedures.
Before you migrate your data to your new HRIS, you need to test your data to ensure that it is compatible, complete, and functional. Testing your data will help you identify and resolve any issues or discrepancies that may arise during the data migration process, such as data loss, corruption, or transformation.
Overcoming resistance to change among employees
User adoption is a significant challenge during HRIS implementation, as employees need to adapt to the changes and embrace the new system. To overcome this challenge, the following actions will be very helpfull:
- Communicate the benefits: Communicate the benefits of the new HRIS to employees. Highlight how it will streamline their work processes, improve data accuracy, and enhance decision-making.
- Training programs: Develop comprehensive training programs to ensure employees have the knowledge and skills to use the new HRIS effectively. Offer a combination of online modules, workshops, and hands-on training sessions. Provide training materials such as user manuals and FAQs to support learning.
- Address concerns and provide support: Encourage open communication and address any concerns or resistance to change. Create a support system where employees can seek guidance and assistance during the transition.
- Monitor and evaluate user adoption: Regularly monitor the usage and adoption rates of the HRIS. Collect employee feedback and use it to refine the training programs and address any lingering concerns. Celebrate success stories and recognize employees who embrace the new system to encourage others to follow suit.
Frequently Asked Questions About HRIS Systems
What are the benefits of using HRIS?
Using an HRIS has multiple benefits for the organization, HR, and the employee.
Working with this kind of software is interesting for all kind and size of activity and it makes a big difference for medium and large organizations. Managing basic employee information in Excel becomes cumbersome at this point and simple procedures like approving employee time off need to be standardized.
Some of the main benefits of working with an HRIS:
- Improved record-keeping: An HRIS is a record-keeping system that keeps track of changes to anything related to employees. As such, the HRIS can be seen as the single source of truth regarding personnel data.
- Compliance: Some employee data is collected and stored for compliance reasons. Think, for instance, of material for the identification of employees in case of theft, fraud, or other misbehaviours, first contact information in case of emergency, citizens identification information for the tax office… All these data have to be stored safely and securely, in line with GDPR regulations.
- Efficiency: Having all this information stored in one place benefits accuracy and saves time.
- HR strategy: The HRIS permits the tracking of data required to advance the HR and business strategy.
- Self-service HR: Another benefit of the HR information system is its ability to offer self-service HR to employees and managers. This enables employees to be more autonomous and manage (most of) their own affairs, like updating their information or requesting leave.
- An improved employee experience: When done right, the self-service opportunities and easy access to HR information that an HRIS offers can positively impact your digital employee experience and, with it, your overall EX.
What are the challenges of implementing HRIS?
The benefits of an HRIS are numerous, but some challenges may arise. Among these are:
- Cost to purchase and implement HRIS software.
- HR department and employee training.
- Adaptation time for all HRIS users.
- The need to hire a HRIS analyst to maintain and update the system.
Still, the pros of obtaining HRIS software for your company outweigh the cons. And the good news is that VISTIM can help you to face all of these challenges.