What Are the Benefits of HRIS?

November 09, 2022

Explore the advantages a Human Resource Information System can have for both employees and the overall organization.

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One technology in particular can be thanked for dramatically altering the human resources profession: the human resources information system (HRIS)

This technological staple of modern companies greatly automated the mundane tasks traditionally associated with HR, elevating the profession from paper-pushers to culture-makers.

So, what does it do exactly?

Basically, an HRIS is a type of HR software that functions as a database for housing critical employee information and assists with key HR functions, such as payroll, benefits administration, and workflow management. The earliest platforms focused on automating manual HR tasks, such as maintaining personnel information or payroll processing, but more recent HRIS software offerings have expanded to include talent management features and more.

Regardless of a vendor’s unique offerings, a HRIS can have a significant impact on an organization’s success. Studies have shown how organizations that integrate this technology with effective HR management processes are likelier to be more productive and profitable than organizations that don’t.

Here are four benefits of a HRIS that demonstrate how and why that is the case.

1. Streamlined HR and Data Processing

The most obvious benefit of a HRIS is how it revolutionizes the collection, storage, maintenance, and analysis of employee data. HR professionals used to complete these tasks manually, often in fields of filing cabinets that could take hours to navigate. Employees needing to update their files would have to contact HR and possibly set up a meeting or complete a request form to begin the process.

HRIS software greatly simplifies this process. It allows HR professionals to perform these actions in a fraction of the time, freeing up their time to focus on larger, strategic goals for the organization, such as identifying other HR efficiency challenges and/or building company culture. Employees’ time is also saved, as they can search for and modify their own information without assistance.

An additional benefit is the improvement of data accuracy by reducing the number of manual tasks – and thus chance for human error – involved in common HR processes.

2. Improved Compliance

Compliance with government regulations is a major concern for organizations of all sizes. Violating such requirements can result in steep fines or penalties. However, a well-organized HRIS provides a unified system for tracking and storing compliance items, such as training course completion, submitted governmental forms, and employment agreements, in case of an audit.

Employees also see the benefits of HRIS in this context. For example, open enrollment can be a very stressful time for employees, and complicated governmental requirements only magnify it. Again, a robust HRIS can alleviate these concerns by integrating those regulations into its features, ensuring that employees can only enroll in benefits based on preset criteria that is compliant with current laws.

Learn More: HR Compliance 101: Fundmentals for HR Professionals

3. Strategic Partnerships with HR

Above all, the benefit of an HRIS is raising HR professionals above the menial to the strategic. HR professionals with an elite HRIS are empowered to develop strong, strategic partnerships with the entire organization.

Rather than grinding on manual data entry, they can analyze efficiency reports. Rather than filing paperwork, they can work on revolutionizing the recruiting and onboarding process.

A contemporary HRIS also enables HR leaders to tackle issues with employee retention and workplace connections. Premier systems will include specific tools for not only finding and retaining talent, but also analyzing relevant workforce data, such as benefits administration information or employee sentiment.

4. Improved Corporate Culture

The events of the past few years have made building corporate culture with hybrid or remote workforces crucial for today’s organizations. The motivations of those workforces are shifting too, as more and more job applicants look for organizational cultures that share similar values and workplace flexibility.

Having a simple way for employees to access and update their own HR data can be an important part of that flexibility. Indeed, one of the biggest changes in HR management history has been to make HR data far more accessible, which is why it’s so important for an HRIS to have an efficient employee self-service (ESS) feature. ESS portals not only make finding and updating information easier, but they also give employees a way to access their information anytime, anywhere via the HRIS’ mobile app.

This ease of access and personal ownership of data improves the quality of an employee’s work life and allows HR professionals to spend more time fostering active engagement with the rest of the organization’s culture.

Finally, connecting employees to both leadership and each other can be invaluable in supporting and defining an organization’s culture. A top-tier HRIS contains employee recognition features that make it easy for leadership and peers to contact and publicly recognize employees, thus improving overall camaraderie and workforce engagement.

Why Your Organization Needs a Modern HRIS

To succeed and thrive in a modern organization HR teams need to be efficient, strategic, and involved. They need to balance agility with insightful analytics and effectively communicate their long-term solutions to any workforce challenges the organization faces.

The best HRIS software can provide all of these and more by streamlining and automating tasks, freeing up time for HR professionals to work on larger initiatives, and fostering a workplace culture that employees want to be a part of.

Schedule a demo to learn more about how Paylocity’s all-in-one HRIS suite can elevate your organization.

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