HRIS for HRP

HRIS stands for Human Resources Information System. The HRIS is a system that is used to collect and store data on an organization’s employees.

An HRIS is also known as HRIS software. This is a bit confusing as it implies that different systems can have different software running on them. However, this is not the case. The HRIS is, in essence, a software package.

The HRIS can either run on the company’s own technical infrastructure, or, what’s more common nowadays, be cloud-based. This means that the software is running outside of the company’s premises, making it much easier to update.

As technology evolves, so does its impact on strategic human resource planning. Human resource information systems are electronic systems that compile information in databases to be easily accessed and analyzed. Some information systems allow automation of processes, such as payroll tax calculations, while others streamline processes by minimizing the need for manual data entry and paper records, thus increasing accuracy and efficiency.

Workforce Planning

Human resource information systems keep track of critical employee data such as demographic information, job titles and Equal Employment Opportunity Commission identification codes. Storing this information in an electronic database allows you to analyze it more easily when working on recruitment strategies, progression planning and affirmative action programs. HR reps can quickly run reports to determine items such as how many employees were hired last year, average length of tenure and a breakdown of the employee population.

Total Rewards

One HR function that can benefit from the use of human resource information systems is total rewards, which refers to all components of the overall compensation model, including salary and benefits. Your company’s HR department can more effectively track and plan for changes to employees’ salary, insurance, retirement and other benefits options using an HRIS. Electronic records keep track of current expenses, and many systems offer projection models and calculators that can help you analyze the impact of various changes. This is especially useful when preparing for annual increases or benefits open enrollment.

Risk Management

Human resource information systems also minimize risks and potential liabilities. This is accomplished by keeping electronic records of items such as employee discipline notices, safety training employees have received, accident logs and workers’ compensation claims. This data is analyzed by the HR department to identify ways to improve workplace conditions, safety training classes and disciplinary processes to ensure compliance with all federal and state labor laws.

Training and Development

Small businesses also may look to an HRIS to assist with training and development initiatives. Depending on the needs of your company, you can use an HRIS to facilitate the annual performance review process, to allow employees to sign up for company-sponsored training classes or to build a talent inventory of what education, experience and training each employee has. Having this information readily accessible by managers and human resources representatives is an asset when developing new training programs or when restructuring departments or positions.