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What is Human Resource Management Information System (HRIS)?

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28th Feb, 2023
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What is Human Resource Management Information System (HRIS)?

Imagine you’re an HR manager at a large company, responsible for managing the data of thousands of employees. From recruitment to payroll and benefits, the HR department is responsible for a vast array of processes that keep the company running smoothly. But with so much data to manage, it can be a daunting task to keep everything organised and up-to-date. 

This is where Human Resource Management Information System (HRIS) comes in. HRIS is a software solution that centralises and automates various HR processes, making it easier for organisations to manage their human capital efficiently and effectively. With the HRIS market expected to reach over USD 33.57 billion by 2030, it is essential to comprehend its significance and implementation within organisations. 

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In this article, we will explore the history, technologies, benefits, features, and future of HRIS in the field of human resource management.

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A History of Human Resource Management Information Systems

HRIS has come a long way since its inception. In the early days, HR departments had to rely on physical files and manual processes to manage employee data. However, as technology advanced, so did the capabilities of HRIS systems. In the 1960s, IBM introduced the first computerised HR system, primarily used for payroll and benefits administration. But it wasn’t until the 1990s, with the advent of the internet and cloud computing, that HRIS systems truly began to take off. Today, according to a study by Deloitte, 70% of organisations use some form of HRIS.

The rise of HRIS has also led to an increase in HR analytics. By centralising employee data, HRIS systems make it easier for organisations to analyse and track key metrics such as employee engagement, retention, and turnover. This has led to a growing field of HR analytics, which enables organisations to make more informed decisions about their workforce.

Technologies that have fueled the growth of HRIS in HRM

The growth of HRIS in the field of human resource management is a direct result of advancements in technology. The following technologies have played a major role in the growth of HRIS:

Cloud Computing

The ability to store and access data from anywhere with an internet connection has enabled organisations to access their HRIS systems from anywhere. This has also made it easier for organisations to share data and collaborate with other departments.

Mobile Technology

The rise of mobile technology has allowed organisations to access HRIS systems from their mobile devices. This has made it easier for employees to access their data and complete HR-related tasks while on the go.

Artificial Intelligence and Machine Learning

The use of artificial intelligence and machine learning in HRIS systems has simplified the automation of repetitive tasks for organisations to gain valuable insights into their workforce.

Big Data

By centralising employee data, HRIS systems assist organisations in collecting and analysing large amounts of data. This has led to a growing field of HR analytics, which enables organisations to make more informed decisions about their workforce.

These four major technological advancements, along with other continuous technological improvements, led to HRIS in HRM being in the shape and form it is today! 

Benefits of Human Resource Information System in HRM (HRIS in HRM)

HRIS offers a number of benefits for HRM teams around the globe. Here are some of the most cited and most important benefits of using HRIS in HRM: 

  1. Increased Efficiency: By centralising and automating various HR processes, HRIS systems make it easier for organisations to manage their human capital efficiently and effectively.
  2. Improved Data Management: HRIS systems enable organisations to manage and store employee data in a centralised location, which improves data accuracy and makes it easier to access and update information.
  3. Better Compliance: HRIS systems help organisations comply with various laws and regulations by providing automated compliance checks and alerts.
  4. Better Decision-Making: With access to real-time data and analytics, HRIS systems enable organisations to make more informed decisions about their workforce.
  5. Improved Employee Self-Service: With access to HRIS systems, employees can access their data and complete tasks such as updating their contact information or requesting time off without going through the HR department.

Functions of HRIS in HRM

HRIS systems play a critical role in modern Human Resource Management departments by automating and streamlining various HR processes and functions. Let us delve into some of the key functions of HRIS in more detail.

Applicant Tracking System

HRIS systems often include an applicant tracking system (ATS) that allows HR professionals to manage and track job applicants throughout the hiring process. This includes posting job openings, collecting resumes and applications, and conducting interviews. ATS also allows HR professionals to track the status of job applications and manage communication with applicants.

Payroll

One of the most important functions of HRIS is managing payroll. HR professionals use these systems to process employee paychecks, calculate taxes and deductions, and create reports on employee compensation. The system also allows employees to access their pay stubs and other payroll-related information.

Benefits Administration

HRIS systems also manage the administration of employee benefits. This includes enrolling employees in benefits plans, tracking employee participation, and managing the distribution of benefits. The system also allows employees to view their benefit information and make changes to their coverage.

Time and Attendance

HRIS systems can also manage employee time and attendance. This includes tracking employee time-off requests, calculating overtime pay, and generating reports on employee attendance.

Training

HRIS systems also provide training management capabilities. This includes tracking employee training and development, creating training schedules, and tracking employee progress.

Performance Management

HRIS systems can help HR professionals manage employee performance evaluations. This includes setting performance goals, tracking employee progress, and providing feedback.

Succession Planning

HRIS systems can help organisations plan for the future by identifying and developing key employees ready to take on leadership roles.

Employee self-service

HRIS systems also allow employees to access their personal information, request time off, and view their pay stubs and benefits information.

Reporting and Analytics

HRIS systems also provide reporting and analytics capabilities that allow HR professionals to analyse employee data and make data-driven decisions. This includes creating reports on employee demographics, turnover, and performance metrics.

In essence, HRIS systems serve a wide range of functions in modern HRM departments. With the continued advancements in technology, the future of HRIS looks bright, and we can expect to see even more advanced features and capabilities.

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Forces Shaping the Future of Human Resource Management Information System in HRM 

The future of Human Resource Management Information Systems (HRMIS) is being shaped by a number of forces, including advances in technology, changing workforce demographics, and shifting business priorities. Here are some of the prominent forces to look out for: 

  • Increasing use of technology: According to a survey by the Society for Human Resource Management, nearly 70% of organisations currently use some form of HR technology, and this number is expected to continue to grow in the coming years. As technology continues to advance, HRMIS will become more sophisticated and able to handle a broader range of tasks.
  • Changing workforce demographics: As the population ages and more people stay in the workforce longer, HRMIS will need to be able to accommodate these changes by tracking employee data and managing benefits for older workers. 
  • Shifting business priorities: As organisations focus more on issues such as sustainability and social responsibility, HRMIS will need to be able to track and manage data related to these issues. Additionally, as the global economy becomes more interconnected, HRMIS will need to be able to manage and track data for employees in different countries and across different time zones.

Overall, the future of HRMIS is being shaped by a combination of technological advances, changing workforce demographics, and shifting business priorities. By staying informed about these forces, organisations can ensure that their HRMIS is well-positioned to meet the needs of the future workforce.

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Conclusion

HRIS systems have come a long way since their inception, and today they are an essential tool for organisations looking to manage their human capital efficiently and effectively. With the continued advancements in technology, the future of HRIS looks bright, and we can expect to see even more advanced features and capabilities. If you’re a fresher looking to build a career in Human Resource Management, understanding the ins and outs of HRIS is crucial. 

upGrad’s Executive Post-Graduate Programme in Human Resource Management from LIBA can help you gain the knowledge and skills needed to excel in this field. With a deep understanding of HRIS and its capabilities, you will be equipped to make a meaningful impact in any organisation you work for. 

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Frequently Asked Questions (FAQs)

1What is the difference between HRIS and HRMS?

HRIS (Human Resource Information System) and HRMS (Human Resource Management System) are often used interchangeably, but they do have some subtle differences. An HRIS stores and manages employee data, such as personal information, employment history, and benefits. An HRMS, on the other hand, is a more comprehensive system that includes HRIS functionality, as well as other HR-related functionality such as recruitment, performance management, and compliance. In short, an HRIS is a subset of an HRMS.

2What are the key benefits of using an HRIS?

An HRIS can provide several key benefits for organisations, including increased efficiency and automation of HR-related tasks, improved data accuracy and security, greater insights into employee performance and recruitment, and better compliance with legal and regulatory requirements.

3How can I learn more about HRIS and its implementation in organisations?

There are several ways to learn about HRIS and its implementation in organisations. One way is to pursue a course on human resource management, such as the one offered by upGrad. This course will provide students with a comprehensive understanding of HRIS, its functions, and its role in modern HRM. Additionally, reading industry publications, attending relevant conferences and webinars, and networking with HR professionals can also provide valuable insights into the field of HRIS.

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