If you want to centralize employee data and automate routine HR tasks like payroll and attendance tracking, consider HRIS. Such systems reduce administrative burdens and errors in the process.

Global HRIS systems can help you manage a diverse workforce across locations with operations that are now seamless and compliant with the local regulations in the jurisdictions where they operate.

For you to be keen on future-proofing its HR processes while equipping your workforce to evolve in an ever-changing business environment, understanding concepts like Human Capital Management (HCM) and Human Resource Management Systems (HRMS) is essential.

We'll discuss what is HRIS software, its core features, and the benefits of HRIS in detail.

Understanding HRIS

Workforce efficiency matters most to company success, so you need automation tools to keep up with and grow your business.

Human Capital Management (HCM) refers to everything you do to manage employees, from hiring to retirement, including the strategies, policies, and procedures.

If it were to be automated, an HCM software suite would include the process of human resources management system (HRMS) and human resources information system.

Defining HRIS software

A Human Resources Information System is about storing, managing, and organizing employee data, such as payroll, benefits, performance reviews, and training records.

HRIS software specifically refers to an application or program that facilitates organizational functions, providing access to and manipulation of employee data through a user interface.

Why HRIS is central to modern HR practices

HRIS reporting data focuses on payroll, employee records, and attendance tracking. Using HRIS software solution, you can manage simple, routine HR activities that keep your operations running smoothly. When fed into an HRMS, this captured data can enable you to perform additional tasks.

For example, you can analyze attendance patterns to identify trends in absenteeism, integrate the data with payroll to ensure accurate salary calculations, and use it to forecast staffing needs for better workforce planning.

Additionally, the data can support employee performance evaluations by correlating attendance with productivity and help automate compliance reports to meet labor regulations.

Core Functions & Features of HR Information Systems

In the past, there were numerous spreadsheets and paper records, which were laborious to deal with. With the HRIS human resource information system, everything is integrated into a secure digital system.

Let’s explore it in detail.

1) Employee data management

Some key areas of employee information that you can store, manage, and organize are:

Employee phone numbers, addresses, and emergency contact details.
Tax records, ensuring compliance with legal requirements and simplifying tax filing.
Salary history, bonuses, deductions, and payroll changes over time.
Resumes, certifications, and other identification details.

You can retrieve this data anytime to reduce administrative burdens. Access control, which allows only personnel authorized to have access to read or modify sensitive data, also enhances data security.

2) Time tracking and payroll automation

You can accurately record employee work hours, leave management, and stress-free payroll generation with a fully integrated payroll HRIS system. Some of the key functions of HR systems for time-tracking and payroll automation include:

Employee work hours are recorded through biometric devices, web-based logins, or mobile applications.
Tracks leave, overtime, and shift schedules in real time.
Reduces payroll discrepancies by ensuring accurate time data integration.
Calculates wages based on attendance, overtime, and deductions automatically.
Ensures tax compliance by handling deductions such as PF, ESI, and other statutory components.
Generates payslips and automates direct deposits to employee bank accounts.

3) Benefits, compensation, and applicant tracking

You can employ this software to streamline critical HR functions, like:

Manages accruals, balances, and leave requests under Paid Time Off (PTO).
Tracking of benefit packages to ascertain labor law and company policy compliance. Additionally, you can offer self-service portals for your employees to choose benefits.
Standardization of pay grades along with roles, experience, and other industry benchmarking.
Tracks performance-based rewards and variable pay components.

Furthermore, you can simplify your hiring process with HR applicant tracking system (ATS) functionality to:

Automate job postings on multiple platforms and screen applications based on predefined criteria.
Coordinates interviews and tracks communication with candidates.
Easily transfers new employees to the system without much paperwork
It enables insights into hiring trends, time-to-hire, and effectiveness in sourcing.

4) Employee performance management and self-service

HRIS platforms provide one-stop access for tracking employee development, simplifying performance reviews, and allowing employees to deal with all aspects of HR independently. This software enables the following:

Monitors progress and publishes periodic status on goal accomplishment.
Automates performance appraisals and 360-degree feedback, peer reviews, and self-assessment.
Records performance history for effective decision-making on promotions and salary increases.
Identifies gaps in skills and suggests personalized training programs.
Trails course completions and credentials for career advancement
Supports internal mobility and leadership grooming.

Furthermore, you can empower employees by giving them control over their personal information and work-related tasks through HRIS technology.

The HR self-service portals empower employees by giving them control over their personal information and work-related tasks. You can reduce the HR departments workload by enabling self-service to:

Update contact details, bank information, and emergency contacts.
Apply for leaves, check balances, and track attendance records.
Access pay stubs, tax forms, and enrollments in benefits options

Benefits of HRIS

Among the various benefits, the importance of HRIS management for your workforce lies in the following:

Data centralization & accessibility: All employee data are stored in a single location and are accessible to employees through self-service portals.
Automation of routine tasks: Automates HR processes like payroll and attendance for employees and contractors, reducing errors and saving time.
Compliance & Reporting: Ensure compliance with the law and produce reports for audits and strategic planning.
Employee lifecycle management: Manages all HR functions from hiring to offboarding, tracking growth and training.
Workforce planning & analytics: Provides insights for workforce planning, budgeting, and talent management.
Improved employee experience: Empowers employees with self-service options for personal and payroll management options.

Exploring Types of HRIS Systems & Platforms

You can choose from various HRIS technologies based on their functionality and focus areas. The main types of HR systems include:

Type of HRIS	Description	Best For
Operational Systems	Manages core HR functions like payroll, attendance, and employee benefits.	Day-to-day HR tasks and compliance.
Strategic Systems	Supports long-term planning with analytics and forecasting.	Talent management and succession.
Tactical Systems	Aids mid-level HR processes such as recruitment and training.	Recruitment and performance tracking.
Comprehensive Systems	Integrates operational, tactical, and strategic functions.	All-in-one HR management.
Specialized Systems	Focuses on specific HR needs like compliance or engagement.	Targeted HR solutions.
Cloud-Based Systems	Hosted online for flexibility and remote access.	Scalability and real-time updates.
On-Premise Systems	Installed in-house for greater control and security.	Organizations with strict data policies.

Key Considerations for Choosing an HRIS

Here's what to look for when considering an HRIS human resource information system:

The HRIS functions should be able to adapt your unique workflows, policies, and reporting needs by having role-based access and configurable options.
Seamless integration of payroll, accounting, and other business tools to eliminate data silos and efficiency enhancement.
A solution that grows with your business supports multilocation scenarios and accommodates an expanding team and needs.
Simple, intuitive interface with mobile access, supported by options such as self-service to increase adoption and decrease administrative tasks.
Comply with labor laws, tax regulations, and data privacy with robust security features such as encryption and access controls.
Consider upfront and ongoing costs that balance affordability with value-added features to maximize return on investment.

Challenges and Best Practices in HRIS Implementation

Legally, payroll HRIS systems should support all regulations in place, like:

Laws such as the GDPR (General Data Protection Regulation), the CCPA (California Consumer Privacy Act), and other regional acts ensure the proper protection of employees' data.
Tracking the working hours, leave entitlements, and tax deductions to abide by labor laws and payroll requirements.
All essential HR documentation, such as contracts, performance records, and benefits administration, must be stored legally compliantly for audits and reporting.

The Future of HRIS Technology

With HRIS technology rapidly evolving, you may keep track of the following developments:

Purpose	Impact on HR
Advanced HR Analytics	Predictive workforce planning to forecast talent needs. Real-time dashboards for performance insights. AI benchmarking for salary and retention strategies. Sentiment analysis to gauge employee well-being.
Cloud-Based HRIS Platforms	Scalable solutions with remote, multi-device access. Enhanced security with encryption & multi-factor authentication. Cost-effective subscription models. Auto-updates for compliance with labor laws.
Employee Experience	Mobile-friendly HR access for self-service. AI-driven career growth suggestions. Self-service portals for leave, payroll, and benefits. Gamification to boost engagement.
Integration Capabilities	API-driven connections with payroll, finance, and ERP systems. Unified platforms for HR and project tracking. Seamless collaboration with tools like Slack & Teams. Automated data sharing across departments.
Process Automation	RPA for onboarding and compliance tracking. Automated payroll, benefits, and approvals. AI-driven interview scheduling. Reduced manual errors with intelligent automation.
Compliance & Data Security	AI-enabled compliance tracking for labor laws. Advanced encryption to secure employee data. GDPR compliance for global workforce management. Automated audit trails for transparency.

Transform Your HR with Skuad

An HRIS is a powerful tool that centralizes employee data, automates the HR process, and enhances workforce management. It simplifies tasks like payroll processing, benefit administration, time tracking, and performance management, enabling you to improve compliance, make data-informed decisions, and enhance employees' experiences.

Skuad's Employer of Record (EOR) enables you to recruit, pay, and manage employees and independent contractors worldwide.

You can book a demo to explore more features that match your HRIS requirements.

FAQs

What is HRIS in simple terms?

HRIS is a digital instrument that assists businesses in housing employee-related information in one place. It simplifies tasks such as storing employee files, keeping attendance and payroll records, providing benefits, and hiring.

What does the HRIS stand for?

HRIS stands for Human Resource Information System. It is part of Human Capital Management (HCM) and focuses on core HR activities such as storing employee data, tracking attendance, processing payroll, and administering benefits.

What is an example of a HRIS system?

An operational HRIS is an example of an HRIS system primarily focusing on managing HR tasks like employee records, payroll processing, and attendance tracking. A strategic HRIS would be more related to workforce planning, talent management, and analytics to help support long-term business goals.

Another example of a tactical HRIS is its use in managing specific HR functions, such as recruitment and training, and provides tools for streamlining hiring processes and employee development.

What are the benefits of HRIS?

An HRIS offers many benefits, including centralized data management. It allows businesses to store and easily access employee information in one place for improved accuracy and efficiency. By automating HR tasks like payroll, attendance tracking, and benefits administration, an HRIS streamlines operations, reduces manual errors, and saves time. It also offers deeper insights through analytics, allowing decision-making and employee planning.

Why is HRIS important in modern organizations?

When all employee information is centralized through HRIS, routine tasks such as payroll and attendance are automated. This system can ensure compliance with labor laws without overburdening the HR professionals and helps minimize error rates. Additionally, self-service features empower employees to manage their personal information, enhancing their overall experience.

What is HRIS: A Comprehensive Overview

Table of Content

Building a remote team?