There are only a few start-ups that help entrepreneurs taste real success. However, once a small scale starts to get massive, the Human Resource department is the one that initiates panic. Since the number of employees starts to rise, the safety concerns among the HR department also begin to rise. This is where HRIS comes to the rescue. Let us look at all the benefits of HRIS an organisation can have.
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What is HRIS?
Going by the acronym, HRIS stands for Human Resource Information System. It is a foundational system for managing a large-scale business. Specifically speaking, the HRIS system is used to collect and store data of the employees in an organisation. It assists the HR department in paying their employees. Although there are numerous benefits of HRIS, some companies are still hesitant on acquiring this system. Each employee’s profile contains key information like contacts, the number of worked hours and sick days, accrued vacation days, performance reviews and goals, etc. Besides, you can sort employees by several filters, and find the ones you need.
The reason for their hesitation could be the fear of purchasing costs and installing a new piece of software. The HRIS system is considered an investment because it has the potential to raise operating costs. Furthermore, this concept is highly misunderstood. The majority of companies fail to understand the benefits of HRIS. Not having a good quality HRIS may challenge the consistency of your employees. Which will directly impact recruitment costs as well as employee productivity. Let us now talk about the benefits of HRIS.
Benefits Of HRIS That An Organisation Can Obtain:
Before getting into the benefits of HRIS, we would like to clarify the difference between HRMS, HCM, and HRIS. People tend to confuse all three of the terms, however, there are some minor differences between these.
When it comes to HRIS and HRMS, they help employers manage several aspects of HRD that includes payroll, compliance, and benefits administration. Whereas, talent and performance management is something that is exclusive to HRMS (Human Resource Management System). Meanwhile, HCM (Human Capital Management), refers to the comprehensive set of management practices that can be successfully achieved with HRMS and HRIS.
As we all know, the HR department is constantly busy. Going through all the work schedules, employee absences, vacation requests, and recruitments, while doing every other work, is no cakewalk. The whole purpose of the benefits of HRIS is to decrease the burden of HRD. It makes their work more efficient and consistent. Now, whether the department is 20 people strong or 200 people strong, HRIS helps in structuring the framework perfectly.
Some Key Benefits Of HRIS include:
- Data-driven decisions
One of the very first benefits of HRIS is that it helps in efficient decision-making. The information that the HR department requires is usually stored in a centralised database. This data can be easily modified, shared, or accessed through HRIS. Thus, HR now does not have to juggle multiple documents and spreadsheets and can easily make data-driven decisions.
- Enhanced User-Experience
One of the major benefits of HRIS is that it comes with user-friendly interfaces. Thus, it makes it easier to fulfil all the job applications, as well as perform other important HRD tasks. HRIS helps collect the data, all in one place. That too in an organised manner that helps in keeping it safe and secured.
- Less time-intensive labour
HRIS further makes Human Resource Department tasks less laborious. The benefits of HRIS such as automation, artificial intelligence, and analytics successfully help cut labour costs. Especially the ones that are related to time, attendance, payroll, and other administrative manual work.
- Accommodation of business growth
The HRIS is successfully capable of handling an increased number of employees. Therefore, the data volume and transactions are well-maintained by the HR department. It also allows the department to expand its business growth and acts as an extremely helpful tool if the company moves to a new location.
- Maintaining Compliance
Compliance is known as abiding by the set of rules that is there in the company. The benefits of HRIS come along with the perks of monitoring capabilities. Furthermore, this helps in staying current and regular with the ever-changing regulations. As well as the data security measures that would help in preventing incidents.
Recently, a study found that companies or organisations that combine appropriate HR technology such as HRIS, with effective techniques of HR management will be gaining more profit and productivity as compared to the ones that don’t.
The benefits of HRIS include increased productivity which easily makes it one of the best HR technologies. It has the potential to benefit all types of companies and organisations. It is extremely important for all the company sectors. We all know that an organisation includes automation in order to get tasks done quickly. Therefore, HRIS not only benefits the HR department, but the overall business to reach its goals. The HRIS help the company, employees, as well as the whole organisation.