Understanding HRIS: The Only System you Need to Manage your Employees

Today, HRIS has come a long way to become increasingly sophisticated and are widely used in HR departments across all types of industries around the world. From onboarding to exit interviews, HRIS systems overview all aspects of the employee lifecycle.

Yet, what does HRIS stand for? Why is important? How to choose the best one?

By the end of this article, you'll get to know everything about this system. Here is our complete guide on HRIS. 📣

Also known as Human Resources Information System, HRIS systems are composed of several modules that automate tasks specific to each HR process, such as:

• employee information management,
• recruitment and onboarding,
• payroll management,
• time and attendance,
• performance management,
• learning and development,
• benefits Administration, and so on.

In fact, HRIS solutions have become a key tool for HR departments, as they help managers monitor the whole lifecycle of employees, from recruitment to human experience management and HCM.

🎬  This video unveils everything you need to know about HRIS: 

HRIS decompose into 3 different types, each one covering specific elements of the human management process. ☝️

Operational HRIS focuses on the day-to-day operations of managing employee information and HR processes.

It primarily deals with:

• Employee Information Management: Centralized storage and management of employee data, including personal details, job history, and employment records.
• Time and Attendance Tracking: Monitoring employee work hours, leave management, and shift scheduling.
• Payroll Administration: Automating payroll processes, including salary calculations, tax deductions, and direct deposits.
• Recruitment and Onboarding: Managing job postings, applicant tracking, and integrating new hires.

Operational HRIS systems are essential for ensuring the smooth functioning of routine HR activities and maintaining accurate employee records.

Tactical HRIS is designed to support mid-term HR planning and decision-making processes.

It includes modules that help with:

• Performance Management: Setting and tracking employee goals, conducting performance appraisals, and providing feedback.
• Training and Development: Managing employee training programs, tracking skill development, and facilitating e-learning.
• Compensation Management: Planning and managing employee compensation packages, including salaries, bonuses, and benefits.
• Recruitment Planning: Analyzing hiring needs, planning recruitment strategies, and optimizing talent acquisition.

Tactical HRIS systems provide tools that help HR managers and executives make informed decisions about workforce planning, development, and compensation.

Strategic HRIS focuses on long-term HR planning and aligning HR strategies with organizational goals.

It provides advanced analytics and strategic tools such as:

• Workforce Analytics: Analyzing workforce data to identify trends, forecast future needs, and support strategic decision-making.
• Succession Planning: Identifying and developing future leaders within the organization to ensure smooth transitions and continuity.
• Employee Engagement and Retention: Monitoring employee satisfaction, conducting surveys, and implementing retention strategies.
• Diversity and Inclusion: Tracking diversity metrics, promoting inclusive practices, and ensuring compliance with equal opportunity regulations.

Strategic HRIS systems enable organizations to leverage HR data for long-term planning, improving overall organizational effectiveness and aligning HR initiatives with business objectives.

Undoubtedly, HRIS software solutions offer a number of benefits for companies of all sizes. But, in concrete terms, what does an HRIS do?

There are many benefits of using an HRIS system, for both your HR team and the rest of your employees. Therefore, it is essential to choose the right system, that allows you to:

• save time,
• save money,
• provide a cutting edge work environment that your entire team will benefit from.

HRIS and payroll systems are not the same, though they are related. 🤔

HRIS is a comprehensive software solution designed to manage various HR functions. In contrast, a payroll system specializes in managing employee compensation, handling tasks like:

• salary calculation,
• tax management,
• benefits and deductions,
• direct deposits,
• and payroll reporting.

Despite their distinct primary functions, HRIS and payroll systems often interact and integrate. This integration allows for seamless data sharing, ensuring accurate and consistent employee information across both systems, which reduces data entry errors and enhances compliance with legal and regulatory requirements.

Together, they support efficient and effective HR and financial operations within an organization.

We already stated what HRIS stands for, but what about HRMS and HCM? What are the differences?

 👉 Human Capital Management, or HCM, is a comprehensive strategy that focuses on optimizing employee performance and aligning HR strategies with business goals.

It includes:

• talent management,
• workforce planning,
• learning and development,
• compensation and benefits,
• and employee engagement.

HCM systems integrate these HR functions with strategic business planning.

 👉 On the other hand Human Resource Management System, or HRMS, is a broader system than HRIS, encompassing all aspects of HRIS while adding modules like:

• payroll,
• time and attendance,
• and labor management.

HRMS aims to provide a more holistic solution for managing the entire employee lifecycle, from hiring to retirement.

As you might have understood by now, while HRIS focuses on administrative tasks, HRMS includes additional functionalities, and HCM integrates all HR functions with strategic planning for comprehensive workforce management.

Before putting an HRIS in your shopping cart, you have to take into account certain factors.

To help you make your way through, here are some necessary elements to take into consideration when choosing. 👇

#1 Can You Centralize all of your Activities in the Same HRIS?

The HRIS must allow you to manage all the resources you need and offer you features to cover all of your responsibilities:

• administrative management of personnel,
• recruitment,
• skills,
• talent management,
• absence and leave management,
• payroll,
• expense reports, etc.

The more, the better! ☝️

Scalability and customization are the keys! The scalability aspect means that a module can be added along the way.

Your HR strategy is being refined, and the company is growing with many new recruits? 👉 A recruitment module is essential to facilitate and manage all the aspects of this mission.

Some HRIS software editors integrate automatic updates to make sure that you are always up-to-date with laws and regulations of different countries.

By using a cloud-based HRIS, you will be able to store and access data anytime and anywhere once you have an internet connection.

An HR portal is a key feature that promotes collaborative work. ☝️

You should choose an HRIS with this feature if your company plans to expand internationally. This will adapt the software to the languages and laws of each country!

Interoperability between information systems allows you to avoid re-entering data and to use it for your different uses.

Can your HRIS capture data from other software or communicate with another tool? 

You must be able to manage access rights to data according to users.

There should at least be an SSL (Secure Sockets Layer) security certificate for all communication on the Internet.

The software editor should help you set up your HRIS.

Their customer support should help you during the entire process, from identifying your needs to installing the solution.

 👉 The best editors will assist you even after the installation so that all your users understand how to use the tool.

You want to modernize your tools to be more competitive and efficient, yet you don't know where to start? 

Chilli can help you in the operational phase of your digital transition. 🚀

From dematerialization of invoices to electronic signatures, Chilli's coaches help SMEs grow by recommending the right software for their needs.

The innovation platform offers several services free of charge to SMEs, this includes :

• an audit: you fill in a small online form that gives your coach an idea of your business, your challenges and your competitors on the market,
• a diagnosis through a one-hour interview, to define your expectations, your needs and your digital potential,
• a quick start, in one week, with a presentation of several solutions adapted to your ecosystem and personalized advice.

BambooHR is a Human Resources Information System for small and medium-sized businesses.

With BambooHR, you can automate and optimize the daily operations of Human Resources.

Its performance management feature lets you create, track and grow performance with your employees. Together, you can set and track multiple goals, and create a constant feedback channel that modern employees crave while automated reminders and notifications keep them informed of new comments, goal progression, and goal completion.

Gusto is a cloud-based HRIS that helps small businesses manage their team members.

Gusto has an easy-to-use, simple interface that can be used by anyone. And, with this software, you can focus on more important tasks and projects, while it manages all of your company's HR processes.

One of the main benefits of this software is that it can help businesses find the best health insurance and employee benefits for every team member.

Zoho People is a cloud-based 360° HR management solution that helps businesses manage their HR processes.

With Zoho People, you will be able to search for employees, set preferences, view organizational trees, and analyze time and attendance records from a single dashboard.

Moreover, Zoho People's HR management tool is ideal for problem-solving. It creates categories for employees’ questions, assigns agents, organizes and discusses cases through comments.

HRIS encompasses many elements such as ERP, and understanding each one of them is necessary to conduct your HR processes smoothly and accurately.

As such, choosing the right tool is also quite necessary. And, we assure you that it worth it! 

 ⚒️ Looking for more? Take a look at all of our HR software!