HRIS

What is HRIS?

What Is an HRIS?

Human Resource Information Systems Help You:

  • Streamline Workflows
  • Secure Data
  • Gather Valuable Insights
  • Simplify Payroll
  • Maintain Compliance
  • Manage Employee Benefits Better

Streamline Workflows

Proper HRIS software acts as your virtual assistant, automating and streamlining employee onboarding, attendance tracking and leave management processes, reducing manual paperwork and saving valuable time.

An HRIS also helps with onboarding, serving up the necessary forms, welcome emails and checklists new employees need.
Whether it’s replacing manual paperwork with cloud-based tools and automation, seamlessly integrating payroll with other HR services or efficiently tracking vital workplace metrics, an HRIS saves time and resources while ensuring human capital management accuracy.

Secure Data

The right HRIS software grants you and your employees peace of mind, locking down important and sensitive user data with advanced security features like encryption and access controls.

Whether it’s restricting and controlling access via built-in HRIS security protocols or training employees and enforcing company-specific policies surrounding data management, an HRIS ensures your sensitive data stays where it belongs.

Gather Valuable Insights

The data available in an HRIS provides your HR team with vital insights on current company trends, like salaries, retention rate, employee satisfaction and the success of internal employee-driven initiatives.

With a clear view of workforce trends, performance metrics and overall engagement levels, company decision-makers can make better-informed choices that drive growth.

Automation features also remove the guesswork often associated with essential HR decisions as companies grow.

Simplify Payroll

There are very few more vital business aspects than payroll. After all, paying your employees on time, every time — and accurately — keeps your well-oiled machine running smoothly.
A good HRIS streamlines, simplifies and automates the payroll process from start to finish, helping generate pay stubs, calculate wages and hours worked, and automatically deduct tax and benefits payments. You can keep everything payroll-related organized and accurate, avoiding costly errors and saving valuable time.

Maintain Compliance

HRIS software acts as your personal compliance guru, automatically generating essential tax forms, tracking and applying labor rules and regulations, and keeping you on the right side of the law to avoid legal headaches and costly penalties.

By centralizing important and sensitive employee data in one place, an HRIS promotes efficient storage, access to and smarter management of that data. On top of that, HRIS systems automatically and seamlessly update information as laws change, keeping everything current amid ever-changing rules and regulations.

Manage Employee Benefits Better

Serving as the one-stop-shop for all things employee benefits related, an HRIS solution simplifies the management of core benefits like health insurance, retirement plans and other important perks via employee self-service portals.
The software can help with benefits administration and tracking, and it makes updating benefits simple, enhancing overall employee engagement and satisfaction.

Whether it’s employees checking their compensation, internal company policies, performance evals and hard-earned time off or reducing the chance of costly, morale-killing administrative errors, an HRIS is a go-to option for better handling benefits.

FAQs: The Scoop on HRIS

What does HRIS mean?

HRIS stands for human resources information system. HRIS software stores and manages employee organizational data from sources like applicant tracking systems (ATS), payroll and time and attendance. It often includes capabilities that support benefits management, training, employee self-service and performance management.

What factors should be considered when choosing an HRIS?

Choosing the right HRIS system can be tricky, especially if you’re unsure what to look for. Here are some factors to keep in mind when choosing the right software solution for your business:

  • Costs: Costs should factor into any of your company’s decisions. Keep in mind both the system’s initial price and any extra installation and training costs.
  • Ease of Implementation: Ideally, an HRIS should simplify things and make everyone’s life easier. That includes initial implementation. The right system should be a breeze to deploy, and the software’s manufacturer should be able to provide lots of training and support without costing too much extra.
  • Scalability: Choosing an HRIS solution capable of growing with your company is an underrated and often overlooked factor.

If you’re looking for a few more hard-hitting questions to ask yourself and your teams before opting for new software, check out our free breakdown here.

Is HRIS cloud-based or on-premises?

Both. HRIS solutions can be both cloud-based — fully hosted on external, offsite servers — or on-premise via locally installed server networks. While cloud-based HRIS is more popular, flexible and accessible, on-premise options are more secure.

Is HRIS suitable for small businesses?

The right HRIS system can benefit businesses of any size. Plenty of scaled-down versions of popular software have features tailor-made for small businesses. Whatever our specific business needs are, you can find a suitable HRIS system fit for your unique requirements.

Can HRIS help with recruiting?

Yes. HRIS systems often have tools that can help you manage recruiting activities like posting to job boards, automatically handling applicant tracking, analyzing applicant responses and running candidate background checks. You can also get insights into important metrics like time-to-hire and cost-per-hire. Some systems even offer compensation package benchmarking, which helps businesses of all sizes compete for talent.

Can HRIS handle performance management?

Yes. HRIS systems often include performance management modules, allowing users to conduct sweeping employee reviews, performance evaluations and assessment planning. This gives you a full 360-degree picture of overall employee performance that encompasses more than just attendance and on-the-job tasks.

What’s the difference between HRIS, HRMS and HCM?

Human resource management systems and human capital management, HRMS and HCM for short, are like cousins to HRIS. While all three are different types of HR software, core differences separate the three.

HRIS is the most popular and widely used of the three. HRMS builds on HRIS’s core functionality, serving as a complete system for managing employee info. HCM takes things up a notch, standing out as the most comprehensive of the three.

For a more in-depth breakdown of the functionality and differences between the three, check out our HCM vs. HRIS vs. HRMS piece.

What are the five types of HRIS?

HRIS software typically comes in five primary types: Operational HRIS, tactical HRIS, strategic HRIS, comprehensive HRIS and limited-function HRIS.

For a detailed breakdown of the differences between each type, check out our handy HRIS component piece.

How do I select an HRIS?

In the dynamic world of modern HR, the benefits of HRIS s
oftware are undeniable. It’s time to ditch the manual grind and embrace a streamlined, data-driven approach that empowers your HR team and elevates your entire organization.

To help get you started, we put together some free resources, including a comparison of HRIS. We also recommend checking out our HRIS requirements checklist and list of the top questions you should ask before implementing HRIS.

When you’re ready to start your selection process, you can access our user-friendly requirements platform to simplify your search and find the right solution for your business.

Have questions about which HR system is right for you? We’d love to help! Reach out to our team for personalized recommendations by emailing [email protected] or via phone at 855-850-3850.

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Your Guides

Our industry journalists proudly distill the helpful information you read on SelectHub, always on the mission to share what matters so you can make your best decisions independently.

HRIS articles are written and edited by:

Zachary Totah

Content Manager

As SelectHub’s Content Manager, Zachary Totah leads a team of more than 35 writers and editors in their quest to provide content that helps software buyers find the right system for their company.

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Ryan McElroy

Content Editor and Senior Market Analyst

Ryan McElroy is a Content Editor and Senior Market Analyst at SelectHub who writes content on EHR, EMR, home health, telemedicine and construction scheduling.

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Pooja Verma

Content Editor and Market Analyst

Pooja Verma is a Content Editor and Market Analyst at SelectHub, who writes content on Endpoint Security and Supply Chain Management.

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Ritika Dixit

Market Analyst and Technical Content Writer

As a Market Analyst at SelectHub, Ritika Dixit researches the market for multiple categories, and develops content primarily for the site’s HR Management category.

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Madhurima Dey

Technical Content Writer

Madhurima Dey is an India-based content creator specializing in Technical Content Witing. She currently produces content on the HR and workforce management spaces that builds knowledge

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Thought Leaders

SelectHub has sought out and invited thought leaders to contribute to our HRIS industry articles and resources. These thought leaders ensure we deliver quality content with the most accurate information, focusing on what matters most. No thought leader is compensated for their contributions, but shares our belief that information should be democratized so everyone can make the best decision.

Dave Ulrich

Dave Ulrich

University of Michigan, Ross School of Business Professor

Ranked as the #1 management guru by Business Week, profiled by Fast Company as one of the world’s top 10 creative people in business

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Matt Charney

Matt Charney

Chief Content Officer, Allegis Global Solutions

Matt Charney currently serves as the Chief Content Officer for Allegis Global Solutions, one of the biggest recruiting and staffing organizations in the world

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Dorothy Dalton

Dorothy Dalton

Global Talent Management Strategist

Dorothy works globally in talent management strategy, covering the whole spectrum of career challenges from “hire to retire” in the talent pipeline.

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Art Mazor

Art Mazor

Deloitte’s HR Transformation Global Practice Leader

Art is Deloitte’s HR Transformation Global Practice Leader, part of the Global Human Capital Executive

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Jason Lauritsen

Jason Lauritsen

Author and Consultant, Workplace Culture Expert

Jason Lauritsen is a keynote speaker, author, and consultant. He is an employee engagement and workplace

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Sabrina Baker

Sabrina Baker

Founder, Acacia HR Solutions

I am the founder of Acacia HR Solutions, a human resource consulting firm focused on the startup and small business niche.

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JD

James (J.D.) Conway

Head of Talent Acquisition at BambooHR

James (J.D.) Conway has over a decade of experience in talent acquisition acting as both a third-party recruiter

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Steven Cates

Steven Cates

Graduate Professor of Human Resources Management at Purdue University Global

Professor Steven Cates serves as a Graduate Professor of Human Resource Management in the School of Business and Information Technology at Purdue University Global

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David Millner

David Millner

Founder & Consulting Partner at HR Curator LTD.

Dave has a business background followed by 30 years of internal and external consulting experience in NatWest

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Perry Timms

Perry Timms

Founder and Chief Energy Officer, PTHR

Perry Timms is the founder and Chief Energy Officer of PTHR – an 8-person global consultancy, setting out to create

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Jon Forknell

Jon Forknell

Vice President and General Manager of Atlas Business Solutions, Inc.,

Jon Forknell is the Vice President and General Manager of Atlas Business Solutions, Inc., a software marketing company specializing

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