How does HRIS benefit employers?  

What are Human Resource Information Systems?

A Human Resource Information System is a tool that centralizes and streamlines HR functions, ranging from payroll and benefits administration to employee record-keeping. It serves as a hub for managing all HR-related tasks, reducing the manual paperwork associated with employee data management.

Benefits of HR Software

From managing employee information to enhancing decision-making through analytics, HR software can transform how businesses handle their human resource functions. The key benefits that   these systems bring to organizations are 

Efficiency 

When tasks are automated through the software, it can improve the efficiency of daily HR tasks. By automating tasks such as calculating salaries and tracking employee hours, HR teams can manage their workload more effectively, especially when resources are limited. This increased productivity enables HR teams to focus on other essential duties, enhancing overall operational efficiency. 

Mitigates errors 

One of the significant benefits is its ability to reduce errors that can pop up from various HR functions. By automating data entry, calculations, and record-keeping tasks, it minimizes the risk of human errors that can occur during manual processing. HRIS software improves the accuracy of HR processes, leading to more reliable data. 

Accelerate the process 

HRIS systems can speed up employee data management. It streamlines tasks such as processing the paperwork of new hires, approving employee leave requests, and managing employee benefits 

Conserves time 

HR team can quickly access and update employee information, generate reports, and communicate with employees more efficiently. This time-saving aspect is particularly beneficial for small and medium-sized enterprises (SMEs), where resources may be limited. 

Better employee experience 

It acts like a central hub where both employees and managers can find all the important information they need, such as company rules, how well they’re doing, how much employees get paid, their work history, employee personal details and any special requirements. Having everything in one place makes it easy for employees to get what they need quickly, especially when requesting leave, and for managers to approve these requests promptly. 

Informed decision making 

HRIS provides valuable data on various HR metrics such as employee turnover, engagement levels, and performance. This data allows HR to identify trends, patterns, and areas for improvement, leading to informed decision-making. HRIS tracks attendance, manages payments including salary structures and benefits, and stores information on promotions. Centralizing employee data can facilitate better decision-making by providing easy access to relevant information 

Enhanced adherence 

When companies use a HRIS system to collect and manage employee information and keep all its rules and procedures in one place, it becomes much easier for the company to follow the law and rules, thus increasing compliance. 

Functions of HR Systems

The functions of HRIS systems can vary depending on the service provider and each system can have its own configuration method. This configuration includes how the system is set up, how data is organized and managed, and how users interact with the system.  Some common functions include 

Managing employee data 

Managing employee data is an important function of HRIS systems. This means storing, organizing, and maintenance of information of all employees. This includes personal details like name, address, contact information, onboarding details, job offer details as well as employment history 

Managing employee benefits 

Employee benefits are handled within the system. It can simplify the management of benefits plans such as health plans and retirement savings, insurance, promotions, bonus by tracking employee eligibility and acts as a central hub for providing employees with easy access to information about available benefits. 

Payroll processing 

Payroll processing is the systematic calculation and distribution of employee salaries within an organization. HRIS software allow HR professionals to calculate employee salaries including, EPF, ETF, process payment and adhere to the employment laws 

Managing employee attendance 

The system can track when employees start and finish work. Unlike in the past, employees now can use cards or fingerprints to record the time they start and finish work. This is linked to the HRIS system. This makes it easier to monitor employee attendance. 

Reporting 

Reporting is a critical function of HRIS software that provides insights into various HR metrics and enables data-driven decision-making. Generation of reports on a wide range of HR-related data, such as employee attendance, performance evaluations, and employee turnover. These reports help HR professionals identify areas for improvement and measure the effectiveness of HR policies. 

Implementation of a HRIS can lead to a positive Return on Investment (ROI) as it can reduce the administrative burden and minimize errors. 

What differentiates a HRIS from an applicant tracking system?

A HR system acts as a storage system for employee information, used by HR departments to manage data related to employees, such as employee demographics, attendance and performance records. However, the primary role of an ATS (Applicant Tracking System) is to manage job applications and track candidate information, right from receiving applications to making a hiring decision. So, while an ATS focuses on managing applicants, a HRIS focuses on managing employee data once the hiring process is over. 

If an organization’s goal is to find and streamline the hiring process to hire new employees, an ATS would be the best tool. It helps manage job postings, find suitable candidates, screen resumes. But if the goal is to manage data of the existing employees, such as dealing with employee wages, deciding promotions, and monitoring performance, then a human resource information system is the right choice. Each system is tailored to different aspects of the employee journey. 

Can ATS-HRIS integration improve HR functions?

One of the benefits of this type of integration is it enhances transparency as the important data can be shared without any difficulty. For example, when a candidate is hired through the ATS, the HRIS can update payroll and benefits information accordingly. This sharing of information between systems ensures that everyone involved has accurate information, which improves transparency. 

Also, when these systems are integrated, it improves the candidate’s experience. It helps in finding the right candidate, ensuring a smooth hiring process, and providing support to new hires as they start working for the company. This integration helps in securing top talent while improving the company’s reputation among job seekers and the community. 

This integration is mainly designed to assist companies that already have a HRIS in place. When an ATS is synced with a HRIS, it can also lead to improved organizational performance. The integration offers a smooth flow of data between recruitment and employee management processes. 

Onboarding new hires 

Integrating an ATS with a human resource information system can make it much easier to bring new employees into a company. This integration makes sure that important information about new hires gets moved from the ATS to the HRIS without any errors. It also lets the system automatically handle things like sending welcome emails, containing a direct link to the HRIS. Within the platform, the new hire can complete the necessary onboarding tasks, including document submissions, contract signings, and benefits enrollment. Moreover, it can also be utilized to send timely reminders to the new employees regarding their initial salary payment date, upcoming performance reviews, and available training sessions. By utilizing these systems collaboratively, organizations can save time and make sure that every new employee goes through the same smooth onboarding process. 

Useful insights 

Integrating these systems is advantageous for organizations in identifying and addressing the performance issues of employes.  For instance, consider a situation where an organization notices a trend of high turnover among employees hired for a certain role. HR professionals can analyze recruitment data to identify similarities among these hires, such as the source of hire (eg: job boards, employee referrals, social media). This understanding can help refine the recruitment process to target candidates who are better suited for the role, ultimately reducing turnover and improving overall performance in that area 

Also, you can create dashboards that allow you to visualize information on interviewers who are successful in bringing in the most qualified candidates. Once identified, the organizations can then implement specific programs, such as training programs to help these employees improve their performance 

Better tracking of job postings 

This integration can centralize job postings. When a job is posted through an ATS, it gets automatically updated in the HRIS, eliminating the need for duplicate data entry. This ensures that all departments have access to the most up-to-date information. 

This integrated system allows better tracking of job postings. If the recruiter makes any edits to the job posting right from the ATS, it gets updated in the HRIS. The seamless communication between the two systems guarantees that job postings are accurately reflected in both the ATS and HRIS software. 

Secured data 

Through proper integration, you can reduce the risk of data breaches, loss, or misuse. This ensures the confidentiality and security of your candidates’ and employees’ personal information, protecting their privacy and maintaining a safe environment. 

Avoids data duplication 

Integrating can help save time of the hiring team by avoiding the need to re-enter data. For instance, when a person is hired, the ATS already has their information, like their name and contact details. Instead of typing it all over again, you can transfer this information directly, making the process quicker and more efficient. 

Examples for HR platforms

Picture a busy HR department where everyone is focused on their work, working together cooperatively, and easily handling employee information. To achieve this, a well selected Human Resource Information System is essential. The following are the HR platforms available to ease the workflow. 

BambooHR 

BambooHR is designed for small and medium businesses and helps improve hiring and make onboarding. Its key features are employee wellbeing survey, performance management, time tracking, payroll management, benefits administration. Additionally, the software can simplify the process of generating detailed reports and allow HR departments to become more strategic in their approach. 

Sage HR 

Sage HR is HR software that aids businesses streamline their HR processes. It offers features such as accommodating employee data, performance management, and leave management, mobile app. Sage HR enables employees to submit their time sheets for approval at the end of the period, reducing administrative burdens. With the mobile app feature employees and managers can approve requests from any location. This app enhances collaboration between employees and managers. 

Sage People 

Sage People is a human resources (HR) software solution that is particularly well-suited for companies that are growing and have a multinational presence. It is designed for organizations with 250 to 5,000 employees and caters to companies with more complex HR needs. Offering various functions like employee engagement, communication, and self-service, it improves daily workforce experiences and enabling easy design of work processes. Sage People facilitates the sending of important business information like videos, social updates, and news through a centralized platform. Targeted communications can be sent to specific employee groups, enhancing engagement. Through the employee self-service feature, the employees can easily find work-related information. It offers 24/7 access from any location or device, allowing employees to manage their requests, access pay information, and book leave conveniently 

How to choose the best HRIS and ATS for your company?

Choosing the best HRIS (Human Resource Information System) and ATS (Applicant Tracking System) for your company involves several key considerations. Firstly, assess your company’s specific needs, such as the complexity of your HR processes, and your budget. Next, compare different systems based on features like easy navigation, integration capabilities, and customer support. Consider systems that offer scalability to accommodate your company’s growth. Additionally, read customer reviews and conduct thorough demos to ensure the chosen system aligns with your company’s goals. 

Summary

With a wide range of tools available in the market, each offering different features, it’s essential to first understand your organization’s specific needs and goals. Regardless of the size or industry, investing in the right tool is undoubtedly advantageous. 

By carefully evaluating the features of different systems, request demos or trials of the shortlisted systems to get a hands-on experience. Organizations can then choose a solution that aligns with their specific requirements.