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HRIS

What is HRIS? The complete guide to human resource information system

16 June 2021

6 min read

Lynette Teo
Lynette Teo

Covid-19 has placed significant demands on HR departments. It has changed the way we work and the way we manage our employees. For example, many companies have been forced to adapt to remote working models by digitalizing their processes. And all this has had a huge impact on South East Asia’s developing HR tech market. As a result, organizations are now seeing the benefits of modernizing their HR processes with Human Resources Information Systems (HRIS). In fact, organizations that are failing to embrace automation and cloud technology are already falling behind.

Is your company up to speed in terms of digitalization and automated processes? Are you ready for the new way of working? Or are you still struggling with manual filing systems and time-consuming reporting methods?

In this post, we will take a look at HRIS software to help you understand what it is and how HR process automation can benefit your business. We will also take a look at some of the features you should be looking for when you implement a solution in your organization.

Table of Contents

What Is a HRIS Software?

Let’s start with a basic definition:

An HRIS is a Human Resources Information System, also known as HRIS software. 

Put simply, HRIS software makes it easier for you to manage your HR processes and data. For example, you can use HRIS software to collect, store, manage and process data at every level of the employee lifecycle, from recruitment and onboarding right through to an employee’s exit from your company. The tool makes it easier for you to maintain accurate records, streamline your processes, generate reports, and ensure regulatory compliance. 

What Does a HRIS Software Do?

A formal definition is all good and well, but what does HRIS software actually do? How will it make your life easier?

Well, for one thing, you can use HRIS to manage all your end-to-end human resources functions. For example, you can collect and store basic employee data such as names, addresses, salaries, work permits, and benefits information. 

You can also use an HRIS system to manage your HR processes. This includes recruitment, onboarding, applicant tracking, employee time and attendance, learning and development, performance reviews, analytics and reporting. Plus, aside from streamlining your processes, you also get a wealth of valuable input that can help you make more effective data-driven decisions. 

Finally, by using digital software to manage your employee records, you can remove the need for paper-based filing systems which take up space and are vulnerable to human error. Instead, HRIS automates your human resources processes so that your HR team can focus on more strategic and high-value work.

What Are the Benefits of Using a HRIS Software?

Ultimately, this is what matters most. How can HRIS software benefit your HR department?

A human resource information system, such as Omni’s HRIS software solution, offers a number of benefits to companies. This explains why companies of all sizes are now implementing HRIS systems to support and manage their people operations. 

Let’s take a look at some of these benefits:

  • Data collection. Whether it’s collecting data from new employees, or processing payroll, an HRIS system improves data collection throughout the entire employee lifecycle, from onboarding right through to offboarding. 
  • Automation. You can use HRIS software to automate and streamline all your HR workflows, reducing time, cost and effort.
  • Digitalization. An HRIS enables you to digitalize all your paper-based employee records and manual spreadsheets. This dramatically reduces vulnerability to human error and because data can be cross-referenced against multiple HR functions, it also standardizes and speeds up your HR management processes.
  • Compliance. An HRIS system provides you with a platform to store all your confidential employee data safely and securely. This improves regulatory compliance.
  • Efficiency. Storing all your employee data in one place helps save time and increases efficiency. No more searching through endless paper files for the information you need. 
  • Strategy. By automating and streamlining all your HR processes, your HR team can spend more time working on HR and business strategy. Plus, access to regular reporting and analytical features provides you with valuable data for tracking HR metrics and improving decision-making. 
  • Self-Service. Many HRIS software solutions also include features for employee self-service. This enables employees to manage a degree of their own data, such as updating personal details or accessing payslips, freeing up more valuable time for your HR staff. This helps to improve the employee experience.

What Should a HRIS Software Solution Include?

There are a number of HRIS systems on the market. So many, in fact, that you may be wondering what you should be looking for. 

Which solution would benefit your company the most? What features would help your HR company run more smoothly?

Here are some of the key features you should be looking for:

  • Applicant Tracking System (ATS): This tool enables you to collect, organize, and track your candidates through each stage of your hiring and recruitment process. You can use it to track candidate information and resumes, and organize, filter and prioritize candidates based on experience and skill set.
  • Onboarding: This feature helps you automate your onboarding workflow so that you can improve the onboarding experience. For example, you can digitalize your offer letters, create smarter document management systems, and customize onboarding tasks and templates. 
  • Employee database: With this feature, you can create and maintain a digital record system that is organized, up-to-date, and accessible at any time and from any place.
  • Time off management: You can use this tool to manage, approve and track your team’s time off requests through a simple and user-friendly interface. You can also use it to create and share all your time-off policies and procedures.
  • Document management: A handy feature for organizing and securely storing all your employee documents through a centralized and encrypted document library. 
  • Employee portal: A dedicated space for your team members to manage requests and access important information whenever needed. This enhances the employee experience, which increases employee satisfaction and engagement levels. 

When Should You Invest in a HRIS?

So, when is the best time to invest in HRIS software?

Generally speaking, an HRIS software solution is worth considering once your company reaches 25 employees, otherwise, you may find that you struggle to grow as an organization. When you choose your solution, you need to make sure it includes all the features you need to manage the full range of HR workflows in your business.

There is no perfect time to invest in a human resource information system. The right time will depend on the size of your company, your business needs, and your budget. However, generally speaking, implementing an HRIS system is a worthwhile investment that can streamline and automate your HR processes, making your workflows more efficient and reducing the time you spend on administrative tasks. This means that the sooner you invest in HRIS, the sooner you can start growing your business.

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