Before databases and computers, many workers were able to lie their way into a job. It was much simpler to embellish a resume, make up a college degree, or use a fraudulent reference.
Without an HRIS human management system in place to confirm records, overworked and underpaid organizations often took the word of their new prospects. Unfortunately, this often led to less suited individuals placed in jobs they could not perform.
Furthermore, tracking employee time and ensuring compliance was a tedious, manual process that required calculating overtime hours and converting hours to minutes. It was easy to make mistakes, and many organizations paid the price for it.
Thankfully, modern software allows companies to streamline and automate nearly all of the HR duties and verify the accuracy of employee and new hire information. Here is an overview of HRIS software and the unique advantages it provides to businesses.
Outdated HR Practices:
- Timesheets - Utilizing a spreadsheet or pen and paper to track employee hours
- Phone Interviews - First step interviews were primarily conducted over the phone
- New Hire Physical Paperwork - Many organizations still continue to use employee new hire paperwork, which takes up space and can easily get lost
- No Employee Handbook - Not too long ago, many organizations didn't use an employee handbook to dictate policies and procedures. This led to several problems, including lawsuits and attendance issues
The Benefits of Human Resource Information Systems
A human resource information system is software that gathers and handles data related to employees, such as social security or salary information. A human capital management system also integrates with time tracking systems to accurately manage employee time and attendance so HR clerks can perform payroll.
Human resources management systems can be cloud-based or it may run on an organization's own IT infrastructure.
Most organizations use a cloud-based solution with high storage capacity because users can easily make quick updates when needed. An HRIS generates reports that help management answer important questions and assess employee performance.
An HR information system streamlines repetitive HR tasks, allowing HR staffers to focus on more important aspects of their jobs. It also ensures accuracy and reliability, which is essential for compliance and payroll purposes. There are many other benefits of an HRIS system, including-
A management employee system collects and maintains all data related to new hire paperwork, hiring policies, job applicants, openings, and important tax forms. It can use this information to generate reports and presentations that assess various problems or successes in hiring practices, attendance, and performance reviews.
Because the data is stored in one centralized capital management HCM system, owners can run numerous types of reports that summarize and analyze any part of this data.
For example, if the owner is looking to hire new sales team members, he may use a report to assess the strengths of past sales team prospects. He could then determine which of the past candidates displayed the qualities he is now looking for and then interviews them.
In short, reports allow users to view and analyze valuable data in an understandable way so they can make better HR-related decisions that contribute to the success of the company.
A human resource management system offers an interactive interface that allows both HR members and potential applicants to upload and view recruiting information. Candidates can upload resumes and input personal data, which notifies the HR department.
When it is time for the HR team to begin hiring, they can easily access all of the candidate data. This helps to streamline the entire hiring process and ensure every piece of relevant data is available.
When looking for potential new hires, managers can conduct meticulous searches of aggregated resumes and seek out the best candidate depending on qualifiers (education level, experience, etc.)
This systemizes and optimizes the entire recruiting and workforce management process from start to finish, freeing up time for HR staffers and ensuring the best candidates are interviewed and hired.
3. Managing Benefits
Changes in employee benefits and evolving regulations can make managing all benefit-related data difficult. An HRIS helps HR staffers streamline the administering of benefits to ensure compliance.
A resources information system typically allows workers to self-enroll in benefit plans, which saves the HR team both time and resources. Employees can also log into the HRIS system to monitor their coverage, change plans, view resources information, or adjust contact information as needed. Utilizing a self-service solution puts much of the responsibility on the employee, rather than HR.
While this minimizes tedious work and saves money, it also protects the organization in case an employee claims a mistake was made on a benefit enrollment plan. An HRIS system requires workers to initial and sign each document, ensuring that everyone is responsible for their inputs.
How Automating Benefits Administration Saves Time:
- Lower cost to the organization for each self-enrollment in a benefits package
- Reduce open enrollment from 8 weeks to 4
- 15% in time savings for the HR staff
- Integrating benefits, payroll, and HR into one system minimizes data entries
- Save time on ensuring compliance
In conclusion, here are the key takeaways to remember about the benefits of human resource information systems-
- A human resource information system is software that collects, stores, and manages all human resource-related data, including employee information, payroll, and new hire information.
- Reporting capabilities provide users an overview of valuable HR data in an understandable way. An information system HRIS empower decision-makers to make the correct choices in regards to hiring practices, administering benefits, or choosing salaries.
- An human capital management system allows HR staffers to streamline the entire recruiting process and ensure the best candidates are chosen based on a particular set of qualifiers.
- A human resource administration system optimizes the benefits administration of an organization by ensuring compliance and providing self-service options. This saves time, money, and frees up resources so the HR team can focus on other aspects of their job.