Many managers agree that a company’s greatest asset is its workforce. A Human Resource Information System (HRIS) is a software or online solution designed to help organizations manage this valuable resource efficiently while providing actionable information for management decisions. Developing an effective HRIS requires careful consideration of multiple factors, including employee recruitment, compensation, promotions, retirement planning, and succession management.
Objectives
The primary goals of an HRIS are to streamline human resource administration, improve efficiency, and reduce costs. To achieve these objectives, the system automates routine HR tasks and makes service delivery more convenient for employees. Modern HRIS platforms collect and store far more data than traditional manual systems. However, their effectiveness depends on presenting this information in a format that managers can easily use for personnel decisions.
When selecting or developing an HRIS, ensure that it fulfills all functions of a traditional HR system while enhancing usability for both employees and HR staff. A good system not only manages data but also empowers decision-making and operational efficiency.
Also Read: Professional in Human Resources (PHR)
Functionality
An HRIS tracks employee profiles, manages benefits, and supports workforce planning. Advanced systems go further by:
- Creating detailed job descriptions and mapping employee skills to these roles.
- Recommending training programs when employee profiles do not fully match job requirements.
- Assisting managers in planning promotions along organizational career paths.
- Evaluating employee performance against position requirements.
- Supporting succession planning by identifying potential replacements for critical positions.
By integrating these functions, an HRIS ensures that employees are effectively aligned with organizational needs while helping managers make strategic decisions.
Security
Protecting employee data is a critical aspect of HRIS development. The system must safeguard privacy, ensure data accuracy, and allow access only to authorized personnel. Key security features should include:
- User authentication through usernames and passwords.
- Access logs to track who views or modifies data.
- Defined access levels for viewing, editing, and managing database structures.
- Procedures for controlling and logging changes to ensure that updates occur only when necessary.
By implementing robust security measures, organizations can maintain trust while ensuring compliance with privacy regulations.
Implementation
Successful HRIS development also depends on a well-planned implementation strategy. Key considerations include:
- Ensuring a smooth transition without disrupting ongoing operations or employee services.
- Providing comprehensive training for employees and HR staff on the new system.
- Running the old and new systems in parallel temporarily to ease the transition.
- Maintaining access to the old system for historical data if needed.
A carefully managed implementation ensures that the HRIS is adopted effectively, maximizing its benefits while minimizing operational disruption.
