Choosing the Perfect HRIS System: Streamlining Processes, Empowering HR | HRMorning (2024)

If you’re not already familiar with what a Human Resource Information System (HRIS) is, it’s a powerful solution for managing your organization’s employee data.

In addition to serving as the central hub for employee data, an HRIS can seamlessly manage your payroll, benefits administration, onboarding, performance management and other complex core HR workflows.

What Else Can an HRIS Do for You?

HRIS software applications make the HR function smoother by storing and organizing employee information, automating tasks and even improving communication. Here are some specific benefits:

• Boosted efficiency. Automating repetitive tasks like payroll processing and benefits enrollment frees up valuable time for HR teams. Automated workflows also reduce human errors from manual data entry, improving accuracy.
• Centralized information. Besides improving access to employee data, an HRIS becomes the go-to place to find company policies, announcements and contact details. This eliminates sending unnecessary emails, outdated documents and confusion about where to find important information.
• Company-wide announcements and targeted communication. HRIS systems can be used to broadcast company-wide announcements or targeted communications to specific departments or teams. This ensures everyone receives important updates and information in a timely and consistent manner.
• Improved compliance. An HRIS helps ensure adherence to labor laws and regulations by automating compliance tasks, such as tracking training completion, and providing audit trails. Enhanced data management capabilities can also streamline your reporting tasks.
• Data-driven decisions. HRIS reporting tools provide valuable insights into workforce trends, such as turnover rates, skills gaps and compensation analysis. This enables data-driven decision-making for talent management and strategic planning.

How Do I Know Which One to Choose?

With a multitude of options available, selecting the HRIS that’s right for you can feel overwhelming. Here are some key considerations for picking a system with confidence:

• Company size and needs. Scalability — or a platform’s ability to align with future needs as your business grows — and features tailored to your specific needs are crucial.
• Core functionalities. It’s important to identify all the HR processes you want to automate. For instance, do you want a system that offers applicant tracking, in addition to payroll, benefits administration and performance management?
• Integration capabilities. If an HRIS won’t integrate with your existing payroll or accounting software, it’s best to cross that vendor off the list because those are counterproductive data silos.
• Employee self-service. A system with a user-friendly portal for employees to access pay stubs, update personal information and request time off will significantly reduce the burden on your HR team. This is one of your must-haves.
• Data security. Verify the system’s security protocols and compliance with relevant data privacy regulations, such as the California Privacy Rights Act, Colorado Privacy Act and Utah Consumer Privacy Act.
• Implementation and support. A reliable vendor ensures a smooth transition and provides timely assistance with technical issues. Choose a vendor with a track record of excellent implementation assistance and ongoing customer support.
• Mobile accessibility. An HRIS with a mobile app enabling employees to access the system on the go is a must-have in today’s smartphone-oriented world.
• AI. Some advanced HRIS options leverage AI for functionalities such as automated resume screening, chatbot-powered employee support or predictive analytics. Ask your contending vendors if any of these are part of their platform because they can really make your life easier.

In an episode of the HRMorning podcast “Voices of HR,” Patrick Sayers, the president of Newcastle Research, said shopping for an HR software vendor should be approached like shopping for a car. This includes making informed decisions that align with your budget.

Your search might reveal that you need a more comprehensive solution, such as a Human Resource Management System, which leverages the data stored in an HRIS to provide additional features like recruitment tools and employee engagement modules.

An HRIS is an investment in your HR team’s efficiency and your organization’s future. By carefully evaluating your needs, you can select the perfect HRIS to empower your HR team and drive strategic talent management.