A human resources information system (HRIS) is a software solution that maintains, manages, and processes detailed employee information and human resources-related policies and procedures. As an interactive system of information management, the HRIS standardizes human resources (HR) tasks and processes while facilitating accurate record keeping and reporting.
Essentially, an HRIS is a “two-way street” in which information about employees is delivered into the organization and, conversely, back out to employees. By eliminating paper-based and manual HR-related processes, an HRIS offers more seamless, streamlined, and efficient interactions between employees and the companies they work for while freeing HR professionals to perform more strategic and high-value work.
The terms HRIS, human resources management system (HRMS), and human capital management (HCM) are often used interchangeably. However, there can be subtle differences between the three, depending on which features a company chooses to enable.
Originally referred to a basic system of keeping administrative employee records. As HR functions became more complex, HRIS incorporates processes such as talent acquisition, recruitment, and ongoing employee data management and processing.
Came into use as organizations began to use increasingly sophisticated software and automated tasks to perform their HR functions—though it is still used interchangeably with HRIS. Today’s HRIS may include payroll management and time and labor.
Refers to a broader or umbrella solution that covers every aspect of the HR function and workforce management. Additional functionality includes advanced talent management tasks such as performance management, succession planning, compensation planning, strategic workforce planning, and every other HR planning activity. HCM covers the range of HR functions whether they are data-based, transactional, or strategic.
An HRIS is built on two pillars that create the foundation for managing people and policies to support overall organizational effectiveness.
From a structural perspective, HRIS includes roles, functions, and reporting hierarchies. By defining the organizational structure, HRIS provides recognizable accountability and a pathway for operational functionality and consistency.
The right HRIS helps you address business challenges by helping you put the right talent in place. Through the consistent, automated management of acquisition and recruiting data, your HRIS can help you build a workforce that has the right people with the right skills, working in the right functions and under the right structure, to meet your strategic goals.
Learn more about Strategic Workforce Planning (PDF)
Similar to customer relationship management but within an employer/employee setting, the HRIS provides a comprehensive view of every employee including name, address, date of hire, compensation, benefit selections, and much more. With the right data, you’ll be better able to connect with your employees, help them develop career plans, find the right training, and take their performance to the next level.
The HRIS enables automated and standardized record keeping, reporting, and self-service functionality. This can lead to more accurate and up-to-date information management that drives greater efficiency while providing convenience and ease of use for employees.
Learn more about Talent Management
A typical HRIS will include basic features that assist with recruiting and talent acquisition, compensation, organizational management, and absence management (such as vacation, sick leave, and personal time off). Additional features can be layered on to meet business needs.
By automating HR-related tasks and providing self-service access to procedures and policies, the system creates standardization and consistency across the organization while increasing HR operational efficiency and providing a better employee experience.
Although everyone within the company is an HRIS user simply by being an employee, the power users of the HRIS are HR administrators, payroll specialists, talent management specialists, and recruiters. A significant portion of these employees’ jobs involves interacting with the HRIS on a regular basis.
Every business is unique and has its own set of challenges. Your HRIS should address those concerns. Here are some of the most common HRIS challenges.
Deploying an HRIS in the cloud has numerous benefits over an on-premise HRIS, including the following:
On-premise HRIS solutions simply cannot match the capabilities of the cloud. Here are ten reasons for making the move to the cloud.
To meet your company’s specific needs, you should customize your HRIS solution. However, there are two main areas of functionality that every company should ensure are available from the HRIS solution provider they choose.
As automated technologies advance, the workplace is changing dramatically. Increasingly, humans are working alongside technology in ever more sophisticated ways. While this creates many business advantages, one of the risks it poses is the dehumanization of the workplace. Ironically, in the HR arena, technology advancement is creating the opportunity to transform the HRIS from an impersonal people-data management system to a system that creates a more human experience in the workplace.
The HRIS of the future will be more helpful and intuitive, making it easier for employees to achieve their objectives more easily, faster, and with better results. These systems will use AI and machine learning (ML) to “sense” what employees are trying to accomplish and proactively offer solutions―from making an address change to enrolling in the best training option. From the back-end operational perspective, HRIS innovations will become more manageable. Installation of upgrades and new releases will be easier and tailored to customer needs.
Organizations that embrace new and emerging technologies in their HRIS will be part of the move to transform the workplace into an environment where technology and humans work together to create better outcomes for all. The HR function is at the heart of this transformation. Let us help you move your HRIS to the cloud so your workplace can become more human while you achieve higher levels of technology-driven performance.
Look for a solution that provides a complete view across your entire HR system, including the linkage between finance and HCM. Oracle built its HCM and ERP solutions on the same Oracle Cloud Platform, making Oracle Cloud HCM the only HCM solution that provides such capability.