Human Resource Information System in HRM
Human
Resource Management was a conventional concept and known only for clerical
administration a decade ago
What
is Human Resource Information System
HRIS stands for Human Resources Information System, a technology based concept that stores and processes data related to employees of the organization.
A human resource information system (HRIS) is software that provides a
centralized repository of employee master data that the human resource
management (HRM) group needs for
completing core human resource (core HR) processes. An HRIS can
help HR and organizations become more efficient through the use of technology
Basic Elements of an HRIS tool in
the Current Context
An
HRIS tool includes several features based on the complexity, size and HR
policies of an organization. For the effective operation
of the HR unit, HR professionals need to have a considerable amount of
information for the implementation of various types of tasks and functions
within the organization.
An
appropriate, comprehensive, and continuous information system is necessary for
the organization for consistency in decisions
Here are some key elements of HRIS in detail
- Database - Human Resource Information System core offering includes a database to store employee information. HR professionals can input all personnel data into the system which can be accessed online. Types of data that HR professionals collect in the database include employee personal files, salary particulars, and performance appraisals.
- Attendance Management – Eliminates the traditional time in and time out sheets and helps the HR unit to maintain punctuality and track absenteeism. HRIS allows employees to record their in and out times and computes the hours worked on daily basis.
- Payroll Administration - The payroll administration and management is key element of a HRIS tool. Rooms for errors is majorly reduced and HR can be easily upload payroll files for processing and finance department can easily make payments to bank accounts. Computation of allowances, deductions, retroactive payments and so many other options are available.
- Benefits – HR will be able to establish and maintain medical schemes and pension benefits of employees through HRIS. Such applications allow employers to have all their human resources data management needs in one platform.
- Self-service - If can offer access to manage the own data of employees. Employees themselves can edit and update their information.
- Business Workflows: Workflows can be developed into the HRIS to decrease redundancy and increase productivity.
- Recruitment - from advertising, receiving applications, screening the applications and interviewing to managing job descriptions, the HRIS tool could support. It can also function as an applicant tracking system.
- Learning and Development - Organizations can integrate mandatory online trainings, e-learning materials for employee growth. It provides continuous training to employees and helps to acquire new skills.
- Performance Appraisal System - Helps to store performance data for the employees and system can be tailored based on the policy of the organization. Can be used as the base data for promotions, increments and succession planning.
(PeopleHum, 2023)
Necessity of an HRIS in Brief
HRIS brings
many positives to an organization and it leads to informed and strategic
decisions while eliminates risks and human errors. HRIS is able to supply various reports
regarding highly risky activities related to Human Resources which allow the
management to take the necessary precautions for minimizing such risks. In
light of this, following are few advantages of having a HRIS tool:
1. For large organizations that employ a very large number of
people, it becomes necessary to employ Human Resources Information System.
2. In a geographically dispersed company, every office requires
timely and accurate information about manpower. If information is stored in
multiple locations, costs and inaccuracy will increase.
3. Modern-day compensation package is complex consisting of many
allowances and deductions.
4. An employer has to comply with several labor laws. A
computerized information system would store and retrieve data quickly and
correctly enabling the employer to comply with statutory requirements.
5. With the help of a computerized personnel information system,
employee records and files can be integrated for fast retrieval,
cross-referencing, and forecasting.
6. Necessary flexibility for adaptation to changes in the
environment can be built into a mechanized information system.
HRIS systems are not always user friendly and it could create problems that solving problems in a practical context. Organizations may easily determine that an HRIS tool is extremely beneficial just by looking at a website or a vendor presentation. However, the real picture is seen through user experience. It is vital for organizations to be aware of the challenges that come along with HRIS implementation and address them to meet its objectivity.
Employee End-User &
Technical Trainings - The
value of training employees and managers to use a new
system should not be underestimated. Employees and managers
should be involved in the implementation and adaptation of the system as much
as possible and a fair amount of time should be set aside
for employees and managers to learn to use the new system.
Adaption
to Change - Managing change is different from training, but can be addressed
during HRIS training meetings. Additional support or an expert panel should be
available assist end users in adapting to the new system more often.
Configuring
HRIS for Optimal Function - HRIS tools are usually consist of
number of features end users become overwhelmed and they end up sticking only
to the basics without making the optimum use of it. It is ideal to have an
in-house software expert recruited after launching the HRIS tool.
Quality
and Accuracy of Data – Errors can be eliminated
only by feeding accurate information with right formulas. For new users, it can
be difficult to determine how to assess accuracy and quality of information. HRIS
analysts or vendor representatives may be invaluable for overcoming this
challenge.
Ensuring Data Security – Along with the implementation of HRIS, organization often will have to initiate data security structures. It is significant for managements to know what security measures are in place in the HRIS tool and appropriate contractual agreements with the vendor should be in place before launching it. Password systems and access limitation are few practical measures to ensure security of sensitive information.
(Rietsema, 2015)
Conclusion
HRIS technology is a solution for many key HR areas, especially
the payroll and employee data management. Choosing the right tool and right
vendor is crucial to set you up a successful transition from offline to online.
Overall, an implementation of an HRIS is costly, time consuming and relied on
Internet but it brings several positives than the mentioned challenges. The
advantages of HRIS outlined above are strategically broader and it contribute
to effectively managing the human resources of the organization.
References
Head of Human Resources of a Leading UN Organization,
2023. HR Working Group Meeting. Colombo: UN.
Hi Rifak, your blog post provides a good introduction to the HRIS and its importance to broader HRM,
ReplyDeleteI'd like to get your thoughts on some of the potential drawbacks and limitations of using HRIS, for example are there privacy concerns? Also einovex.com (2022) talks about "vendor lock-in" whereby a particular company is dependent on a single software supplier, it is argued that this dependency can pose a number of risks, including increased costs, reduced competition, and reduced flexibility. What is your perspective?
Best regards, Nithila
Thanks for your logical comment dear Nithila. You have brought up some key risk factors of HRIS and I agree with you on those. To mitigate such privacy concerns, organizations follow access control mechanisms where only limited HR staff will have access to staff personal data and that too due to various benefits organization offers to it's staff such as child allowance, medical insurance for dependents, education grant and many more. On relying on one vendor, yes it is true but despite the negatives, organizations see the numerous positives brought in through HRIS and vendors are chosen based on organization's requirements knowing the limitations, reduced flexibility, cost and etc..
DeleteVery interesting topic & well-structured. Using an HRIS does have certain drawbacks, of course.
ReplyDeleteSecurity. One of the main concerns is security. Systems must be built to stop both the accidental release of sensitive and confidential material as well as illegal access to that data. This usually needed numerous "compartments" and degrees of access authorization, all of which had to be monitored and kept up with. Cost. The cost consideration follows. This can be problematic, especially for smaller businesses. There are installation and upkeep charges for every system. Since SaaS (software as a service) systems are cloud-based and don't require a large initial investment, they are a little bit simpler to manage financially. Staffing. The cost of engaging an IT expert will undoubtedly increase with larger installations. Bruce, S. (2014)
Thanks for your view and much appreciated. Despite these challenges, organizations see number of Positives and ease the HRIS platform bring in. That's why it is widely used all over the world. I totally agree with your points of concern and there are measures to overcome. I have indicated some of those in my article precisely.
DeleteWell written article, Rifak!
ReplyDeleteI completely agree with the points made about the benefits and challenges of HRIS implementation. According to a study by Deloitte, organizations that have implemented HRIS systems report improved efficiency in HR operations, better compliance with regulations, and improved employee experience (Deloitte, 2019).
In light of the potential benefits and challenges of HRIS implementation, I am curious about the impact of HRIS systems on employee engagement and retention. Have there been any studies conducted on this topic?
Thanks Thahani for additional inputs. An effective HRIS system if definitely a positive sign for employee engagement as it brings management and employees into the same page most of the time and reduces conflicting opinions. According to Michelle Woods, An HRIS provides a channel through which management and employees can discuss policies and procedures. Serving as a centralized portal, it can communicate clear directives, garner feedback from various personnel and departments, and reduce misinformation. A centralized platform enables top-down and bottom-up communications and gleans pertinent, real-time information to make better business decisions (Woods 2017).
Deletehttps://unicornhro.com/blog/4-ways-hris-can-improve-employee-engagement/
Interesting article! HRIS systems have become increasingly popular in Human Resource Management (HRM) because they can streamline many of the routine HR tasks, allowing HR professionals to focus on more strategic initiatives that add value to the organization. HRIS can also help to reduce errors, increase efficiency, and improve compliance with legal requirements.
ReplyDeleteThanks Chathura. Totally agreed with your view. Numerous benefits are there through HRIS for an organization and HR operations become more data driven since the entry of HRIS tools.
DeleteHRIS technology provides a solution for a variety of critical HR sectors, namely payroll and employee data administration. Choosing the correct technology and vendor is critical for a smooth shift from offline to online. In overall, you have highlighted key aspects and issues that are actively involved in modern HR convenience.
ReplyDeleteThanks Ashkar for sharing your thoughts.
DeleteThis is a good article to get an introduction to using an HRIS system for managing different types of HR related processes.
ReplyDeleteThank you. HRIS is a modernday factor for process improvement and work digitalization in HRM domain.
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