Human Resource Information System is one of the widely used software packages in the HR scenario. It has streamlined the entire HR procedure and brought varied aspects of HR under one roof. Needless to say, HRIS is the present and future of human resource management.
Here we will cover a few aspects of HRIS ranging from its meaning, its importance, its types, and its use in organizations. This will be a comprehensive guide to all the basic know-how of HRIS and how organizations can implement it for higher productivity.
What is an HRIS? – Human Resource Information System
Human Resource Information System is defined as a software package or an online solution that is used to manage employee and organizational data. It is used to store the data, track the data as well as manage the data. HRIS is used to store sets of data and retrieve them as and when necessary.
HRIS is an HR automation software that applies to all functions of human resource management. It is a database for storing employee data. This contains information such as the contact details, the address details, the work permit, the social security numbers, etc. HRIS pertains to functions such as recruitment, applicant tracking procedure, employee management, compensation management, leave management, so on and so forth.
In short, HRIS can be considered as an intelligent database that stores all employee information makes it easily accessible, thereby automating the HR functions.
TYPES OF HRIS
As already mentioned the HRIS software does not only pertain to one kind of task. It applies to people functions, procedure functions as well as policy functions. This gives rise to four major types or varieties of HRIS with their respective subsets. Read on to find out.
Operational HRIS primarily deals with recurring and regular HR functions. At the operational level, the primary work of HRIS is to collect various employee data and store it. The systems under operational HRIS are as follows:
● Employee Information System is a database for all employee information ranging from their age, sex, religion to background history, work experience, social security number, etc.
● A position control system that gives detailed information about the current positions in an organization, with the employees assigned to it, the job title, and also the positions that need to be filled.
● The applicant selection system helps the HR personnel in the evaluation, screening, and onboarding functions of candidates post recruitment.
● Government Reporting and Compliance Information Systems keeps track of all government regulations and compliances about the organization and its employees.
Tactical HRIS is primarily used at the managerial level and not at the operational level. It aids upper-level managers in the organization in facilitating the decision-making process. The subset functions under tactical-HRIS are as follows-
● Job analysis and design information system– It cumulates all the internal and external organizational information to create job descriptions and job specifications. The internal information includes those from supervisors, workers, etc. The external information includes those from labor unions, competitors, market research, etc.
● Recruitment Information System- Every recruitment procedure requires a plan. This plan includes information about the organizational needs, the positions that need to be filled as well as the skill required. Recruitment Information system aids in these functions as well as streamlines information regarding employee transfers, pensions, job preferences, etc.
● The compensation Management system deals with the benefits and compensations meted to the employees. This function is also tactical as it can help in increasing productivity through various incentive plans.
● The training and development system aims to streamline the training process to meet the needs of the specific job roles that are previously determined by operational HRIS.
The subset functions under strategic HRIS are described below :
● Information system supporting workforce planning- This is used in long-term strategic decisions of the organization such as market expansion, construction in new locations, diversifying the product line, etc. These need comprehensive data about the workforce which is exactly what the system facilitates.
● Information system supporting labor negotiations – The human resource team completing the negotiating needs to be able to obtain numerous ad hoc reports that analyze the organization’s and union’s positions within the framework of both the industry and the current economic situation.
The other HR functions produce several files like employee files, information files, position files, skills inventory files, etc. It gets a difficult task to skim through all of them to find out the desired results. Comprehensive HRIS, therefore, cumulates all these files to create a comprehensive database that can be accessed for retrieving information required in HR planning.
IMPORTANCE OF HRIS
HR automation is the future that we are currently looking at. The automation of HR by HRIS has proved beneficial to modern-day organizations in more ways than one. It has multi-dimensional benefits starting from cost-effectiveness to increased productivity. The implementation of HRIS has changed the scenario of HR operations and hence is of utmost importance to any organization. The reasons are as stated below :
- Clear Definition of The Goal
The analytical approach of HRIS makes the definition of organizational goals very clear. Both the long term and short term goals are not just merely planned by the strategic level, it is planned by an analytical algorithm.
The human resource of any organization is a huge field. Hence, data has to be stored in the account of employee data, position data, compensation data, etc. It does not only require a lot of paperwork but also incurs a huge deal of cost to the organization. HRIS streamlines this operation thereby economizing on the cost.
When any information is required, scrolling through huge tons of information is time-consuming work. It also results in diminished accuracy and delays the retrieval of such data. HRIS being a systematic and comprehensive database makes retrieval of data easy and timely.
Hence HRIS induces analytics in the decision-making process, it makes the decision-making process more accurate and data-oriented. It leaves no room for bias and human error and the analytical approach also speeds up the decision-making process.
- Appropriate Training Programs
Training programs are detrimental to the long-term and short-term productivity of the organization. Operational HRIS facilitates laying down the exact needs of the organization in terms of skill-sets and workforce planning. That allows tailor-made training programs for the organizational needs and hence further paving way for better productivity.
HRIS doesn’t seem to be a luxury for organizations anymore. It seems to be a need. With the proper utilization of this software, organizations can effectively streamline all of their processes to attain greater productivity at lower costs. However, complete dependence on HRIS will take away the human element from HRIS which it so direly needs. But, with a proper balance of the human effort as well as the analytical HRIS, organizations can see heights of productivity that have been long unknown.