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What Is HRIS? Everything You Need To Know

HR & Compliance

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Updated on:
April 11, 2024
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Updated on :

April 11, 2024
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What Is HRIS? Everything You Need To Know


Manual human resources processes can be tedious and time-consuming. They require a lot of paperwork, have limited scalability, and are prone to error.  All of this restricts your potential for business growth.

Implementing an automated HR system through an HRIS platform can help those processes run more efficiently so businesses can focus on strategy rather than struggling with administrative tasks.

What does HRIS stand for?

HRIS stands for Human Resources Information System. It is a computerized system to manage employee information such as payroll, benefits, recruitment, and training records. With an HRIS, employers can access and update employee information more efficiently than with manual processes.

What does HRIS software do?

HRIS software automates and simplifies various human resources functions, such as payroll processing, employee recruitment and onboarding, time tracking, and attendance monitoring. You also get reporting abilities to help monitor key performance indicators related to labor costs with an HRIS, meaning you can improve operational efficiencies while gathering insights into workforce trends.

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What are the benefits of an HRIS?

There are many advantages to an HR system:

  • Simplifying administrative tasks: An HR system streamlines processes, allowing for automated notifications and triggers to take place, as well as reducing time-consuming paperwork. Admin work can consume up to 39% of an HR team’s efforts, so streamlining it makes the entire department more cost-effective.
  • Reducing human error in data entry: With a modern HRIS, manual data errors are reduced, which results in fewer mistakes when dealing with employee information. It also helps ensure that personal records such as addresses or contact details remain up-to-date and correct.
  • Generating real-time reports or insights into current business trends: This benefit allows employers to keep a finger on the pulse of their business by providing key metrics like headcounts and workforce demographics so they can make informed decisions related to workforce planning and management quickly and effectively.

Increasing compliance with regulations related to employment matters: Good HR software will remind you of deadlines and other critical regulatory obligations that must be taken care of for the employer to be protected from any legal liabilities arising from noncompliance issues. This includes pay slips plus statutory requirements concerning employment contracts.

When should I get an HRIS system for my business?

There are more than one-fits-all answers regarding an HRIS system. Businesses with larger numbers of employees benefit more from a comprehensive HRIS than companies with fewer employees who can manage their employee records manually. They typically benefit more from an automated system to streamline processes and ensure accuracy. Businesses with multiple locations or divisions may need to invest in an advanced HRIS system sooner than smaller and geographically dispersed ones.

The complexity and size of a company’s HR activities are important factors in determining when an HRIS is necessary. Assess the needs of your business to ensure you purchase one with capabilities that best meet your organization's requirements.

How many employees can an HRIS handle?

An HRIS can handle any amount of employees, from a few to thousands. It offers features such as secure employee data storage and easy organization for efficient management. Whether you're just starting or have an established business, an HRIS is perfect for streamlined personnel management. The key is finding out when investing in an HRIS can yield significant returns.

Features of HRIS Software

The key features of an HRIS system typically include the following:

  • Employee Self-Service (ESS): This enables your staff to access their data anytime. ESS reduces paperwork and helps ensure the accuracy of employees' personal information. It is key to HRIS experiences that your workers will visibly benefit from (i.e., they can see how the investment works for them).
  • Onboarding Tool: Helps streamline the onboarding process by tracking forms and documents with automated alerts and reminders. This strengthens efficiency by automating administrative tasks associated with onboarding new staff members.
  • Benefits Management: Facilitates efficient administration of benefit enrollments/changes in accordance with company policies. Therefore, it improves benefit administration processes, supporting compliance with company policies.
  • Performance Review System: Assists managers in systematically measuring performance outcomes against predetermined objectives or requirements. Overall, it increases visibility into workforce development goals. Therefore, it provides oversight for the individual performance objectives set for each employee.

What are some examples of HRIS systems?

Examples of popular HRIS solutions include BambooHR, Oracle HCM Cloud, Workday Human Capital Management, and SAP SuccessFactors.

So what sets these popular examples of HRIS apart in the market? Different HRIS systems have various features and benefits depending on an organization's needs. These popular solutions mentioned above all offer superior user experience, robust security measures to protect sensitive data, and deep analytics capabilities to monitor performance. Additionally, each system may specialize in certain areas, such as employee engagement or recruiting. You need to select a solution tailored to your specific organizational requirements.

How do I use an HRIS system?

When deciding on an HRIS system, assess which features would be most beneficial for your organization. Common functions of an HRIS include applicant tracking and onboarding, employee data management, and compliance reporting. Common capabilities may include payroll processing, timekeeping tracking, benefits administration, and performance reviews. Depending on your case, choose an HRIS that excels in one feature or group of features rather than a more comprehensive one or vice versa.

There are also industry-specific HRIS systems available. Depending on the size of your organization and the needs associated with the services you provide, an all-encompassing system may not meet your requirements.

Once you have identified the necessary components of your solution, consider comparing vendors to find one that fits within the scope of both requirements and budget parameters. Finally, train staff on how to use it, so they are comfortable with its operation before launch!

Why are HRIS systems important?

HRIS technology can be an incredibly powerful tool for organizations, large and small. Companies that employ HRIS systems, especially ones tailored to their specific needs, gain access to a wide range of benefits, such as improved recruitment practices and automated payroll processing. You're also better able to track employee satisfaction with surveys incorporated into the system and evaluate workforce data more efficiently in order to make better decisions about personnel acquisitions or internal promotion opportunities.

Utilizing an HRIS system gives you easy access to dozens of features that provide deeper insights into key areas like employee engagement. Also, insights into performance reviews, skill-building initiatives, and training retention rates — all helping your business move forward confidently with sound human resource strategies.

Build your teams with Skuad

You will need support if you’re in a growth and global expansion stage. Along with a capable HRIS acting as underlying tech infrastructure, you could use a hand with complex endeavors such as international sourcing and hiring.

Building globally distributed teams requires more than a robust, reliable HRIS. It takes a partner that knows how to navigate the complicated regulatory issues you’ll inevitably have to face when hiring internationally and remotely. It takes a global employment and payroll platform like Skuad to make you more efficient, effective, and successful.

Skuad handles your entire employment lifecycle so you can scale business operations while your hiring, onboarding, payroll management, and compliance with employment laws are efficiently handled.

Ready to start? Book a demo from Skuad today.

About the author

Catalina Wang is a Human Resource Consultant. She manages recruitment, onboarding, and contract administration staffing for many organizations and remote teams. She’s passionate about efficient HR management and the impact of tech on hiring practices.

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