Key takeaways
Why you can trust my advice
For eight years, I worked as an HR specialist and manager with small businesses, where I was often tasked with identifying the best and most effective software for the company. This hands-on experience taught me that not all software is the same – what works for one company may not be the best fit for another.
What is an HRIS?
An HR information system (HRIS) manages and simplifies essential HR functions, acting as a central hub for collecting, storing, and managing employee data. At its core, an HRIS offers features like:
It ensures compliance with labor laws by maintaining accurate records and generating reports. By consolidating these functions into a single platform, an HRIS reduces the administrative load on HR, allowing your team to focus on more strategic initiatives.
Beyond enhanced efficiency, many HRIS systems include employee self-service portals, which empower employees to manage their information, request time off, and access benefits.
Learn about the versatility of HRIS: Types of Human Resource Information Systems (HRIS)
The difference between HRIS, HRMS, and HCM
Human resource management systems (HRMS) and human capital management (HCM) systems are often viewed the same as HRIS. However, they represent different levels of HR technology, each with distinct capabilities.
An HRIS provides the tools necessary for HR administration to run smoothly. In contrast, an HRMS builds upon this foundation by offering features that enhance talent management, such as performance tracking and recruitment tools.
HCM systems offer a more holistic option and typically allow employers to pick and choose the functionalities they want, creating a more customized platform that can also integrate with their business strategy.
Functionality | HRIS | HRMS | HCM |
---|---|---|---|
Employee data management | ✔️ | ✔️ | ✔️ |
Payroll management | ✔️ | ✔️ | ✔️ |
Benefits administration | ✔️ | ✔️ | ✔️ |
Time and attendance tracking | ✔️ | ✔️ | ✔️ |
Document management | ✔️ | ✔️ | ✔️ |
Reporting and analytics | ✔️ | ✔️ | ✔️ |
Performance management | ✔️ | ✔️ | |
Talent management | ✔️ | ✔️ | |
Workforce planning | ✔️ | ||
Succession planning | ✔️ | ||
Advanced analytics | ✔️ | ||
Business intelligence | ✔️ |
Read our full breakdown of core HR systems: HRIS vs HRMS vs HCM: What Is the Difference?
HRIS features and uses
HRIS systems help companies become more effective and efficient in HR administration. Here are the core features of an HRIS and how they’re used:
Employee data management
Centralizing and organizing employee information is a fundamental aspect of effective HR management. Software like BambooHR Core excels in this area. Its employee data management feature allows companies to handle personal information, employment history, job roles, and other essential details.
By consolidating this information into a single, accessible platform, companies can consistently keep their employee data up-to-date and easily accessible. Quickly retrieving employee records helps with decision-making, compliance, and overall organizational efficiency.
The accuracy and accessibility provided by BambooHR’s HRIS also prevent errors stemming from fragmented or outdated data.
Payroll processing
A key feature of an HRIS is its ability to automate the payroll process, ensuring that wages, taxes, and deductions are accurately calculated while maintaining compliance with local regulations. This automation significantly reduces the risk of errors and saves time.
For example, Gusto is an HRIS particularly known for its robust payroll processing capabilities. The software simplifies payroll and integrates time and attendance tracking.
Time and attendance tracking
Managing time and attendance can become particularly complex when factoring in holidays, PTO, and overtime. An HRIS with time and attendance tracking can record employee work hours, manage leave requests, and track attendance patterns to further ensure the accuracy of payroll and compliance.
HRIS tools like Toggl and FunctionFox offer time-tracking capabilities. Toggl allows users to track time manually and automatically, and offers scheduling and project tracking. FunctionFox offers similar features and efficiently manages employee timesheets.
Benefits administration
Administering employee benefits like healthcare, retirement plans, life insurance, and dental/vision insurance is a vital HR responsibility. An HRIS that offers benefits administration simplifies this process by streamlining enrollment, tracking employee eligibility, and offering self-service options for employees to manage their benefits.
TriNet is an HRIS that offers benefits administration and takes it a step further. It allows businesses to see which benefits are being utilized and which aren’t, which is necessary to determine which benefits matter most to employees. Furthermore, with access to TriNet’s marketplace, companies can compare benefits and select the ones that resonate the most with their employees.
Document management
Document management is essential for maintaining organization and ensuring compliance. HR information systems play a crucial role in securely storing and easily retrieving key documents, such as contracts, performance reviews, and compliance forms. Some HRIS software offers e-signature capabilities and customizable templates.
Rippling is a powerful HRIS that excels in document management and compliance and can handle documents across 150 countries. This global functionality ensures organizations remain compliant with local regulations no matter where they operate.
Reporting and analytics
One of the most valuable functions of an HRIS is its ability to generate detailed reports on key HR metrics such as compliance, attendance, job roles, and turnover rates. These reports offer actionable insights that empower company leadership to make informed decisions and enhance strategic planning.
Rippling offers comprehensive reporting and analytics features, but UKG Ready is particularly renowned for its powerful and customizable analytics platform. UKG Ready tailors its system to meet the specific needs of your business, providing analytics for HR metrics like employee burnout, retention, unfair scheduling, and more. Users can compare these reports across specific points in time to identify trends and patterns and get a better view of what’s going on within the organization.