14 Key Benefits of HRIS Software in 2024
Companies are increasingly turning to HR technology. The market value of HR software is expected to grow to $33.57 billion by 2028. One of the biggest drivers for this adoption is the demand to collect company statistics. In a survey of companies using new tech, 57% of organizations explained they adopted new HR software to generate workplace analytics.
However, analytics is only one of the benefits of adopting HRIS (Human Resources Information Systems). Besides getting raw data, HRIS software can make it work in a company’s favor.
To expand on that, we’ll explain HRIS software, why it’s important for businesses of all sizes, and its benefits. We’ll also give you advice on choosing the right software for your business so you can get the most out of HRIS. Read on to learn about the benefits of HRIS software in 2024.
What does HRIS stand for?
A Human Resource Information System (HRIS) acts as a centralized hub for all your employee and organizational data. This includes essential details like names, contact information, job titles, and benefits selections. However, Human Resource Information Systems go beyond a simple employee database. They optimize HR functions by automating processes and offering functionalities like:
- Payroll processing and benefits administration
- Recruiting and onboarding processes
- Time and attendance tracking
- Leave management
- Employee self-service portals
HRIS vs. HRMS vs. HCM: A Few Clarifications
The terms HRIS (Human Resource Information System), HRMS (Human Resource Management System), and HCM (Human Capital Management) are often used interchangeably. There can be some overlap in functionality, but here’s a basic breakdown:
HRIS
The foundation software, providing a central repository for employee information and automating core human resources processes.
HRMS
Builds upon HRIS functionality, often including features like employee performance management and career development.
HCM
The broadest term, encompassing all aspects of managing an organization’s workforce, including talent acquisition, training, and compensation.
In essence, as your organization’s needs evolve, you may opt for HRMS or HCM solutions that offer a more comprehensive suite of tools built upon the most fundamental functionalities of HRIS.
Why Are HRIS Tools Important?
These tools are crucial for businesses of all sizes, from new startups to large enterprises, due to the benefits of HRIS and its ability to efficiently track, organize, and manage employees’ personal information.
Why Implement HRIS Early On? New Businesses and Startups
For new businesses and startups, where resources might be limited, and every decision counts, the benefits of HRIS tools include a solid solution for managing essential team data. Here’s why even companies in their early stages can take advantage of the benefits of HRIS:
1. Establishing a solid foundation
Setting up an HRIS from the beginning creates a well-organized system for managing employee data as the company grows. This does away with the tickling possibility of having to migrate down the line.
2. Scalability for future growth
Many HRIS providers design their platform to scale with your company. This means you can choose a system that meets your current needs while offering the flexibility to accommodate future expansion.
3. Attracting and retaining talent
A well-organized HR system demonstrates professionalism and can be an advantage when attracting top talent, even for startups. Additionally, efficient human resources processes contribute to a positive employee experience and to sound retention metrics. A strong onboarding experience, for example, can make an employee stay for three years, but a negative recruiting process can make the prospective employee walk away.
Small and Medium-Sized Businesses
Small and medium-sized businesses (SMBs) face similar challenges but on a larger scale. As SMBs grow, the volume of employee data management and HR tasks also expands. Without an efficient system in place, managing this data manually can become a real headache and prone to errors. The benefits of HRIS tools are there to help SMBs manage their growing workforce effectively, giving them the scalability they need to keep up with their business’s growth.
Big Companies
Large enterprises with established HR departments also have much to reap from strategically picked HRIS software. The complexity of managing a vast and diverse workforce calls for robust systems that can centralize employee information and simplify HR processes. HRIS tools provide large enterprises with the agility to adapt to changing organizational needs and regulatory requirements, even as they adapt to new markets.
14 Key Benefits of HRIS Software for Business Owners & HR Professionals
As we have been saying, HRIS software is a great choice for companies of all sizes. These are the most significant benefits of Human Resources Management Systems:
Enhanced Efficiency and Accuracy
- Optimized processes: HRIS automates repetitive tasks like tracking time off, running job ads, collecting employee reviews, administrating benefits, and unblocking HR processes for more strategic initiatives.
- Centralized data management: An HRIS creates a single source of truth for people data, minimizing errors and inconsistencies often found in paper-based systems. This helps keep accurate records and makes it easier to follow labor laws.
Improved Employee Experience
- Self-service portals: Among the benefits of HRIS, this tool supplies employees with self-service tools for tasks like requesting leave or updating personal information.
- Smoother onboarding: Another of the benefits of HRIS is that it can automate onboarding workflows, saving time for both HR and new hires.
- Improved company culture: HR data from the HRIS can inform strategic decisions related to company culture. For example, analyzing retention rates or employee engagement surveys can help identify areas for improvement and guide efforts to create a healthier work environment.
Stronger Decision-Making
- Data-driven insights: To bring together valuable data and reporting functionalities is another one of the benefits of HRIS. HR teams can pick up workforce trends, identify areas for improvement, and make informed decisions regarding talent management and employee engagement strategies.
- Predictive analytics: Some advanced HRIS solutions offer predictive analytics capabilities. This allows HR teams to anticipate future workforce needs, identify potential skill gaps, and proactively develop strategies to address them.
Data Protection and Security
- Secure data storage: HRIS software stores employee's personal information and sensitive employee data electronically, often with robust encryption measures. This reduces the risk of data breaches compared to paper-based systems.
- Access controls: Another one of the benefits of HRIS is that it allows for user access controls, ensuring that only authorized personnel can access specific employee data.
- Compliance support: HRIS solutions can help organizations comply with data privacy regulations like GDPR and CCPA (the latter also extends to employees, not just consumers).
Additional Benefits
- Scalability: Many HRIS solutions, especially those running on a SaaS model, are designed to scale with your company, both price-wise and capacity-wise.
- Ad writing: Some HRIS solutions can write job ads based on a title alone.
- Cost savings: By automating tasks, reducing errors, and improving efficiency, HRIS can contribute to overall cost savings for the company.
- Scheduling: Some HRIS solutions can help HR professionals schedule their interviews with prospective employees, who’ll appreciate being kept in the loop.
Choosing the Right HRIS Software for Your Needs
Selecting the ideal HRIS software can be complex and tedious. However, the task is even more of a headache if you don’t take the time to consider your specific business strategy and needs. Focusing on your specific requirements will lead you to the best solution and will let you make the most out of the benefits of HRIS.
Here are some key factors to consider:
Features and Functionality
Self-service: Look for an HRIS that offers a self-service portal for employees to access information, request leave, update personal details, and manage other HR tasks. This promotes employees’ autonomy and reduces the workload on HR personnel.
Pricing: Consider the upfront cost, ongoing subscription fees, and any additional implementation or training costs. Choose an HRIS that aligns with your budget and provides a good return on investment. If it’s on a SaaS model that lets you start for free, that’s even better.
User-friendliness: The HRIS should be intuitive and easy for both HR professionals and employees to navigate. A user-friendly interface simplifies adoption and minimizes training requirements.
Scalability: Select an HRIS that can grow with your organization. Look for solutions that offer flexible plans and features that can accommodate future increases in employee count and business complexity. You should never pay above your current wants and needs. But you should never need to migrate once your workforce starts off, either. A scalable solution works, for the right price, for any company stage.
Additional Features
Time-off tracking: A comprehensive HRIS should be able to automate time-off requests, approvals, and accrual tracking, optimizing the process for both employees and managers.
Applicant tracking system (ATS): An integrated ATS must simplify the recruitment process for you by managing applications, scheduling interviews, and facilitating communication with candidates.
Onboarding: HRIS systems should automate and simplify onboarding workflows, ensuring a smooth transition for new hires.
Asset management: Consider an HRIS software that can track and manage company assets like laptops, phones, and other equipment through the human resources information system.
Integrations: Choose an HRIS vendor that offers a solution that integrates with your existing software ecosystem, such as payroll, learning and development platforms, and accounting systems. This ensures a smooth data flow and avoids manual data entry.
Implementation Considerations
Accessibility and ease of navigation: Your human resources information system should be accessible to employees and the HR team alike. Besides a sound UI, a cloud-based solution makes deploying it easier. HRIS systems that can be browsed from mobile apps earn extra points.
Customizations: Consider the ability to customize the HRIS interface (branding) and language options to suit your company’s needs and employee demographics.
By taking a close look at these factors and matching them to what you need, you can make a smart choice when choosing an HRIS software that helps your HR team, makes employees happier, and helps your company grow. Basically, the best way to take advantage of the benefits of HRIS software is to get to know your own company’s needs.
Register for an Affordable, Easy To Use Tool and Get Started
It’s evident that HRIS software stands as a cornerstone for modern businesses, regardless of their scale. Companies are rapidly starting to recognize the value of the benefits of HRIS to optimize HR operations and promote organizational growth.
Here’s a quick recap of the most significant benefits of HRIS software:
- Greater efficiency and accuracy: Optimized processes and centralized data management.
- Improved employee experience: Self-service tools, smoother onboarding, and improved company culture.
- Improved decision-making: Gather data-driven information and predictive analytics.
- Data protection and security: Secure data storage, access controls, and compliance support.
- Additional benefits: Scalability, cost savings, improved scheduling, and more.
Whether you run a startup, an SMB, or a large company, implementing an HRIS system can significantly improve your HR operations and strengthen your organization. TalentHR is an intuitive, all-in-one HR solution designed to modernize people management and maximize overall business success.
TalentHR can offer you:
- Reduced costs and scalability: The freemium model has core functionalities free for up to 10 users, and affordable paid plans to accommodate growth.
- Simplified processes: Automation (onboarding, time-off management) saves valuable HR time and resources.
- Centralized data and easy access: It includes a cloud-based solution for storing and accessing HR data from anywhere (ideal for remote teams).
- Focus on building your team: The tool includes an applicant tracking system that simplifies recruitment, an onboarding tool to ensure a smooth new hire experience, a careers page with global reach to attract top talent, a tool for benefits administration, and multilingual support (over 14 languages) for international teams.
- AI-powered assistance: AI writer helps create compelling job descriptions.
- A mobile app: Take advantage of the benefits of HRIS from your mobile phone.
Register now for free.
To learn more about all-in-one people management solutions for business owners and HR teams, visit TalentHR.
