Why Your Company Needs an HRIS: Benefits and Features Explained
As organizations become larger, managing employee information manually becomes increasingly difficult. This is where an HRIS (Human Resources Information System) comes into play. The purpose of an HRIS is to integrate all HR functions into one streamlined system. It’s a digital, automated tool that helps organizations manage employee data, payroll, benefits administration, performance management, compliance tracking, and much more. HRIS has a lot of benefits, some of which we will discuss below.
Benefits of using an HRIS
1. Time-saving and Efficient
The most obvious benefit of an HRIS is its ability to streamline HR processes. Instead of manually managing employee data, HRIS automates the work, saving a significant amount of time. This means that HR teams can focus more on strategic planning, rather than routine paperwork.
2. Increased Accuracy
Manual management of employee data can be prone to errors, which in turn can lead to compliance issues. HRIS eliminates these risks by automating processes, reducing the chances of inaccuracies. This accuracy also helps organization leaders to make better-informed decisions.
3. Cost Savings
An HRIS can save organizations a significant amount of money, particularly in the long run. Businesses can save on paper, printing, mailing, and storage costs. Additionally, HRIS minimizes the risk of compliance violations and employee lawsuits, potentially saving companies millions of dollars.
4. Improved Data Analytics
HRIS has the ability to compile and analyze vast amounts of employee data through various reports. This can help organizations identify opportunities for improvement, such as skills gaps and performance issues. Such data can be useful in making informed decisions that can help businesses better manage their workforce.
5. Improved Employee Engagement
HRIS allows employees to access their information and update their personal details, such as their address and contact information. This level of transparency helps employees feel more connected to the organization, increasing their engagement and loyalty.
Features of an HRIS
1. Applicant Tracking System (ATS)
An ATS is used to manage the recruitment process. It stores resumes and job applications, tracks candidates’ progress through the recruitment process, and allows HR teams to schedule interviews and send automated emails.
2. Performance Management Module
This feature enables managers to track employee performance, provide feedback, and set objectives. It also tracks employee progress towards goals and highlights areas where they need to improve.
3. Payroll and Benefits Administration System
This feature automates payroll and benefits administration, allowing organizations to manage employee salaries, deductions, taxes, and benefits from a single system.
4. Time and Attendance Tracking System
HRIS can track employees’ time and attendance using biometric sensors or digital timecards. This helps HR teams manage employee schedules and reduce time theft.
5. Compliance Management System
HRIS software helps organizations maintain compliance with employment laws and regulations by automating compliance tasks, such as tracking I-9s and EEO reporting.
In conclusion, an HRIS system offers businesses numerous advantages. It can enhance the accuracy and efficiency of HR operations, improve decision-making, save organizations money, and increase employee engagement. The features of an HRIS can vary, but most include modules for recruitment, performance management, payroll and benefits administration, time, and attendance tracking, and compliance management. Thus, it’s apparent that investing in an HRIS system would be a wise choice for businesses who want to streamline their HR processes.
