What Are the Advantages of a Human Resource Information System?

A human resource information system (HRIS) is computer software employers use to manage the human resources functions of their organization. It has the capability to maintain employment records of all staff members, and employers can use it to collect metrics surrounding the firm’s staffing, performance management, compensation and benefits activities, according to BuyerZone. Although not all companies rely heavily on software, there are many benefits of human resource information systems including increased efficiency and faster access to important personnel data.

Faster Report Generation

Perhaps the biggest benefit of HRIS systems is the ability to quickly create reports and presentations. Because these figures are held in one database, a business owner possesses the capability of running a variety of detailed reports that encompass some or all of the human resource information held by the company. For example, when looking to hire additional staff, he can run a report of past candidates who possess a specific skill set. Alternatively, he can run a compensation report to obtain needed information when preparing the annual budget.

Centralized Employee Information

An HRIS system typically holds all information surrounding the firm’s human resources initiatives, including details regarding the group’s hiring practices, such as a comprehensive listing of all job applicants, an up-to-date index of job openings and electronic copies of each employee’s onboarding paperwork, such as I-9 and W2 forms. An HRIS system also holds data regarding the salary and incentive compensation of each staff member. Results of annual performance appraisals and any disciplinary actions that have been taken toward members of the team are included, as well. HRIS systems can be customized to meet the needs of all types and sizes of organizations, according to

Streamlined Recruitment

In support of a firm’s staffing efforts, many HRIS systems provide a sophisticated interface allowing its use by both internal employees, as well as external job applicants. The recruiting process is faster and more efficient with the help of an HRIS system, according to An HRIS system allows candidates for open positions to submit their resumes and contact information to a potential employer from a remote computer.

The system then collects the information and archives it so it is immediately accessible by the hiring manager. When seeking candidates, the manager is able to perform detailed searches of collected resumes, using a variety of queries, including location, level of education, years of professional experience and technical skill set. In addition, the software also allows current employees to electronically apply for new positions.

Enhanced Benefits Administration

Advantages of HRIS systems include more efficient administration of employee benefits. In many cases, employees and new hires may electronically enroll in benefit plans. They may also have the capability of logging onto the system to monitor and update their current coverage throughout the year, changing status, dependent information and contact data as required. A self-service system allows for benefits to be efficiently administered with as little manpower as possible, saving an organizations time and money.