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Designing and Managing a Human Resource Information System

Overview Business Case Determining Needs Planning Design Considerations Vendor Selection Implementation Evaluation Software Vendors

Technology has noticeably changed HR management; most organizations provide universal access to HR services through technology and web-based applications. These changes often result from the need to cut costs and expand or improve services. Research shows that organizations that successfully adopt sophisticated HR technology tools outperform those that do not. But the simple automation of HR processes can no longer guarantee a competitive advantage. Instead, organizations must determine how to use technology to transform their HR practices and market their HR brand. See  Small HR Functions Can Adopt Automation Technologies, Too .

Business Case

A formal business case is needed to gain support from the decision-makers who can authorize funds for a new or upgraded HRIS. The business case should closely align HR goals with the organization's business strategy and specify the anticipated impact on the organization's bottom line. Presenting a strong cost/benefit analysis to justify the costs of purchasing and implementing a new HRIS is necessary. See  How to Persuade Company Leaders to Invest in New HR Technology and How to Make the Case for Investing in HR Technology .

Because HR is not generally viewed as a profit center, the business case should focus on reducing administrative and processing costs, increasing efficiencies, and improving value-added knowledge from analytics while supporting the organization's principal business needs. To corroborate the value of a new HRIS, quantify the cost of providing the current level of services as well as future anticipated benefits against the new system's bottom-line impact.

When developing a business case, determine the quantity and quality of the department's services to enable an assessment of how a new HRIS will improve existing manual processes and deliver services more efficiently. Determine why the existing system is no longer sufficient and identify any weaknesses in the existing system processes and functions. Investments in integrated systems or cloud technology, while bringing HR to the technology table, must be well positioned to contribute to the organization's bottom line.

When developing a business case for a new HRIS, address the following:

• Outline precise business problems. For example, lack of integrated systems results in poor data integrity and time spent reconciling information from incompatible systems.
• Clearly state the objective and the anticipated results. For example, purchase, install and implement a state-of-the-art system that will upgrade HR's quality of service through efficiency and better information.
• Specify any current HRIS issues. For example, the department has outgrown the current HRIS, which does not run the latest software and is incompatible with other systems.
• List all other available options or alternatives. For example, remain with the current HRIS, upgrade individual systems, or outsource some or all HR services.
• Provide clear goals and objectives. For example, use assessments of delivery value analysis to determine necessary functions and results.
• Include a summary of the current cost for HR service delivery.
• Determine the expected rate of ROI upon implementation.

From the list of immediate needs, determine what will bring the most value to end users and the organization. In addition, assess which functions will be enhanced by improved automation and integration, information, and analytics and establish the tangible and intangible savings and costs.

A first step is to evaluate the value of the changes the new HRIS will enable. Employers should think in terms of cost reduction and automating and improving inefficient, superfluous and labor-intensive HR services. Examples include:

• Cost reduction via automation:
• Time entry and attendance tracking.
• Benefits administration.
• Recruiting.
• Performance management.
• Improvements through integration:
• Compensation management.
• Ability to track training, licenses, certifications and education.
• Report generation and processing.
• Centralization and efficiency of the flow, capture and use of HR data.
• Speed in delivery of services.
• New or updated delivery of services:
• Benefits confirmation statements.
• Electronic payroll advices.
• Companywide standardization of policies and procedures.
• Use of interactive voice response (IVR) and Internet.
• Employee self-service.
• Improved reporting and analytics such as:
• Turnover of high-potential employees.
• Refined compensation modeling.
• Standardized, automated and scheduled reporting
• Ability to accommodate remote users.

Organizations should carefully estimate the cost of providing the services today against the anticipated cost with the new HRIS. See  Kick-Start Your Digital HR Strategy: Information Systems .

Determining Needs

An HRIS can be as simple as a small, internally developed employee database or as complex as a fully integrated multimillion-dollar enterprise resource planning (ERP) system offering economies of scale to larger companies. Depending on the organization's business operations, consolidating workflows and capturing data in a single application may be more critical than implementing a global solution that would support multiple languages or provide all employees with remote access. See  How to Select an HRIS .

Employers must have a firm understanding of the organization's culture, its ability to accept large-scale changes—whether it is expanding its operations globally or undergoing mergers and acquisitions—and, most significantly, its short- and long-term goals. Employers must also understand how tech savvy its managers and employees are and be able to accommodate for mobile as well as traditional access models. See  Emphasis on Employee Experience Revolutionizes HR Technology .

Each HRIS user will have slightly different information needs and can be split into two groups—employees and nonemployees. The employee category includes:

• Managers who rely on the HRIS and its data for decision-making.
• Analysts and power users who evaluate potential choices and opportunities.
• Technicians who are responsible for providing a usable, up-to-date system for all users.
• Those who use the system on a self-service basis to access and/or update personal information.

The nonemployee group includes:

• Potential employees (applicants).
• Business partners.

The planning phase is crucial in the design of any software implementation project. A comprehensive planning process will provide both the necessary framework within which the implementation team can proceed and the decision-making parameters for unforeseen difficulties.

The initial planning process should include discussions of the following:

• Project scope. Clearly defining which pieces of the system must be completely operational to satisfy various end users' needs is imperative to any successful implementation. Agreeing to requests for additional work, or scope creep, raises costs and could cause significant implementation delays.
• Management support. Sufficient management support is essential to identify initiatives and priorities, attain high-level support, allocate resources and funding, remove obstacles, gain consensus, and meet timelines. Depending on the organization's size, the executive sponsor may be an individual or a cross-sectional management group. The sponsor should remain involved through the project. The executive sponsor should be someone who can make decisions and commitments for the company, including vendor selection, final process confirmation and project sign-off.
• Project duration. The project's size and complexity and available resources will determine completion and go-live dates. Firm, realistic deadlines will help keep staff motivated and reduce scope creep.
• Project manager. Depending on the project's size, complexity and duration, the organization should select a person to oversee all aspects of the project. Selection options for this role include:
• Hiring an outside consultant, who many have a strong technical background but will have limited knowledge of the organization's mission, strategy processes and needs, which could increase costs.
• Hiring a full-time certified project manager, which could reduce costs if the organization has enough projects to justify a full-time position.
• Temporarily transferring someone involved in the project into a project management role.
• Steering committee and project charter. Project managers often receive assistance with the planning and implementation process from a steering committee comprising key stakeholders. Steering committees often include the following positions:
• Project manager.
• Project sponsor from senior management.
• Lead employee from each technical area (e.g., systems analyst, database administrator).
• HR functional experts.
• A charter outlines the overall goals of the project in one document. The project charter accomplishes the following:
• Builds the case for the implementation.
• Illustrates the project's connection to organizational goals and strategies.
• Identifies project scope.
• Outlines roles and responsibilities.
• Identifies additional available expertise.
• Describes the decision-making process.
• Identifies deliverables.
• Outlines a change enablement and communication plan.
• Implementation team. Functional team members often include HR professionals with some technological expertise. Technical team members include HRIS specialists, systems analysts, database administrators, and other software and hardware specialists. It is strongly recommended that a member of the IT department be involved because ultimately IT will be expected to offer front-line support.
• Outside consultants. Organizations that have never undergone a major software implementation or that lack the necessary in-house skill sets may consider hiring an outside consultant.
• Process mapping . The implementation team  should compile a list of HR processes, and then develop a model of each process. The model should incorporate a flow chart and a dataflow model (i.e., detailing data elements, processes and outputs to go with each step of the process). This map should also identify any integrations with other systems or dependencies on other systems or functions.
• Data migration and configuration. The implementation team should also determine which data should be migrated and how that migration will take place.
• Documentation . Throughout implementation, the project team should record each action and decision. Items to document include:
• A log of outstanding issues and risks.
• All decisions, who made them and when they made them.
• New or modified procedures or processes.
• System training manuals.
• Technical requirements.
• Business case presentations.
• Table set-ups.
• Change management. The implementation team conducts an impact assessment to identify affected stakeholders. Next, a communication, education and training plan addressing each affected audience should be developed to ease the transition to the new system and to facilitate acceptance among users.

Design Considerations

Once an organization has decided to implement technology in its overall HR strategy, it must determine whether to use a single platform, an integrated technology solution to support multiple HR functions or multiple smaller systems—sometimes known as best-of-breed (BoB) solutions, each supporting a different HR function.

Integrated solutions

With this strategy, a single vendor helps the organization develop one platform that incorporates multiple HR functions. Often these platforms are part of an enterprise-wide information system architecture that includes a variety of business functions such as a general ledger, customer relationship management and logistics.  See  Weighing the Decision to Unify HR, Finance and ERP Systems .

Best-of-breed solutions

Organizations that implement a BoB strategy pick the best applications for each HR functional area, working with one or more vendors. For example, the organization might use a recruiting solution from one vendor, a time-and-attendance program from a second, and a payroll system from a third. Smaller businesses with limited resources or those that want to use technology selectively as part of the overall HR strategy, might prefer this approach.

The organization must also consider how the technology will be delivered. Options include:

• On-premise or purchase and install. The organization will purchase and install hardware and software on internal machines that internal IT staff support.
• Hosted or application service provider. The organization purchases applications that are located at the vendor's site and supported by external IT staff.
• Software as a service (SaaS). The organization subscribes to software that is developed and deployed remotely and accessed via a Web browser. Vendors offer many organizations access to the same package (known as multitenancy) and maintain the software for each organization.

Both hosted and SaaS approaches can be effective for organizations that lack the resources or technical expertise to implement a large, integrated system. Many vendors are beginning to market SaaS applications to small and midsize businesses that want to expand their HR services.

One of the most significant changes in the practice of HR management has been the "democratization" of HR data, expanding access to employees, managers, health insurers, workers' compensation carriers, senior executives, job applicants and regulatory agencies. These diverse users have unique needs that various solutions are designed to meet.

An HR portal provides a single, targeted and often customized access point for each employee (and increasingly, each job applicant). The HR portal allows an individual to access the necessary resources and data for his or her circumstances and position, enabling each to design an interface that displays the most relevant data. Most HR portals are also Web-enabled, so employees can access HR services anywhere and anytime on a variety of mobile devices.

Employee self-service (ESS)—often provided through the HR portal—enables employees to access and maintain their personal HR information and to directly conduct many HR transactions. A well-designed ESS allows employees to make informed decisions and become much more self-sufficient. See  Leveraging the Value of Employee Self-Service Portals .

Another tool accessible via the HR portal is a manager self-service (MSS) application, which enables supervisors to conduct many HR transactions online and generate real-time reports. Organizations can determine the number and complexity of HR tasks in the MSS. For example, managers could authorize merit increases, promotions and transfers; approve leave requests; change an employee's classification; and conduct performance management, succession planning and onboarding.

Most software packages are robust and flexible. However, if customization is necessary, organizations must ensure that the ROI justifies any additional costs. A customized package may match the organization's processes more closely, but extreme customization may cause problems when the vendor upgrades software affecting compatibility or support issues.

Installing the appropriate security features in the HRIS should be one of the top priorities to properly handle:

• Disclosure of sensitive electronically stored information such as payroll and benefits data among employees.
• Loss of sensitive personnel data outside the organization (such as Social Security numbers), resulting in data breaches or identity theft.
• Unauthorized updates of key data such as salaries and stock options (quantity and dates).
• Sharing of personnel or applicant review—comments to unauthorized employees.
• Sharing of data with external organizations and service providers.

Employers should have protocols developed to respond to security breaches or the unintended exposure of sensitive information. In addition, as identity theft becomes more prevalent, management should be prepared to assist employees who report identity theft to ensure their information is updated and secured.

The implementation team should work with the IT department to ensure proper information security protocols are in place to provide the right access to authorized users while ensuring data security. Common security measures could include encryption, data classification models to highlight restricted information and authentication procedures. See  Employees Are Key to Curbing Data-Breach Risks .

Vendor Selection

Although developing technology in-house is possible, using external vendors is generally more cost-effective and often provides a more comprehensive HR solution. However, the wide selection of vendors and variety of products can be daunting.

When an organization purchases a new HRIS system, it is entering a new business partnership, so choosing the right vendor is as important as choosing the necessary software.

HRIS software packages vary greatly in scope and functionality; therefore, organizations should select a vendor that will take time to gain a better understanding of the organization's processes and functional needs.

The HRIS market includes software providers that sell systems directly and resellers that provide consulting and installation services for third-party applications. When working with a reseller, employers should look at the vendor's software update and new release history to gain insight into its commitment to its offerings.

Any reputable developer or reseller should provide references from current clients of similar size with comparable business processes. Employers should ask vendors' references questions such as:

• How has the system improved HR functions?
• What modules are you using?
• Has the system met your expectations? If not, what is it missing?
• Are end users satisfied with the system?
• Has the system been expanded or upgraded since the original purchase? If so, how did the upgrade affect customizations and other features?
• How has the vendor responded to any problems?
• What do you like best about the system? What do you like least?
• Has the system provided the expected ROI? Why or why not?
• What was the implementation experience like? Did the vendor deliver on budget and on schedule?

The purchase agreement should include not only the system deliverables but also anticipated long-term support, service levels expected, and training for all users, including the basics of entering data, running reports and troubleshooting typical problems.

Before contacting potential vendors, management should set internal ground rules, such as whether to share its budget and a list of other vendors under consideration and how to handle communications with the vendor.

In addition, the organization should determine how to compare competing bids and decide which functional and technical requirements and costs are most important. Employers should gain consensus from senior management on the selection weighting.

After identifying potential vendors, the organization should develop a concise, detailed request for proposal (RFP) to gather information about what each vendor would offer. The RFP should provide an objective measure of the organization's requirements and budget to induce vendors to respond. At a minimum, an RFP should include:

• Information on the company, users, objectives, technology infrastructure and any other background information necessary for the vendor to understand the organization and its needs.
• A way to objectively compare software functionalities and technicalities, such as a list of mandatory requirements in a questionnaire for the vendor. Generally, it is a good idea to identify "must have" requirements as well as "nice to have" functionalities that would enhance the experience but not be deal breakers in the vendor selection process. Some organizations choose to narrow their lists of mandatory requirements to approximately 50 key requirements that are likely to differentiate vendors. They can evaluate other solutions during demonstrations and one-on-one discussions.
• A request for pricing based on specified terms (e.g., by module or number of named users).
• The software selection process, due dates, contact names and other essential project details.

After reviewing the proposals, the organization should select two or three of the most suitable vendors—based on proposed solutions and pricing—for demonstrations. Employers should prepare for each demonstration, ensuring that key individuals are in the audience, giving vendors a demo "script" that outlines which functions are required and a "score card" that enables attendees to note their likes and dislikes about each demo. Demonstrations of small systems could take only a few hours, whereas large systems could require a few days. Employers must make sure to strike a balance between getting enough details and keeping the process manageable for vendors and the selection team. See  Making the Most of HR Tech Demos .

Organizations should take time to confirm the vendor's claims and perform reference checks. Once this due diligence is complete and HR has settled on a vendor, obtain senior executive approval and negotiate the pricing, terms and conditions in a well-vetted contract. If organizations are implementing a complex, expensive system, they are advised to have a contracts attorney review the document prior to signing. See  How to Negotiate Contracts with HR Technology Vendors .

Implementation

Once the organization has selected a vendor and finalized the contract, it should conduct more due diligence to ensure a successful implementation. Understanding the HRIS end users' needs, technical possibilities, software parameters, and the implementation process will increase the probability of rolling out a system that meets HR and organizational needs.

First, identify and document the underlying objective for the new HRIS. This involves determining which pieces must be implemented versus which would be nice to have. Keep in mind the organization's size, number of employees and overall scope of deliverables.

No matter how thoroughly an organization prepares for an HRIS implementation, things could go wrong. Some of the most common problems encountered when implementing technology projects include scope creep of the deliverables, poorly defined requirements resulting in rejected deliverables, late delivery or poor communication between stakeholders, project management and vendors. A strong project implementation team will identify problems early on to keep the project on track.

After implementation, the organization and vendor should conduct system testing, often concurrently with data migration and configuration, to verify data integrity. Are the data stored in the correct location? Can users query the data? Are the data available to individuals with appropriate security clearance? Technical software team members should test each module for proper functionality, and functional HR team members should verify that the module is working properly and maintaining data integrity.

Some organizations opt to change over to the new system immediately, turning off the old system. Adjustments are made as needed when problems are identified during testing and initial use. The potential downside to this approach is the organization-wide learning curve as users adjust to the new software.

Another option is to run both systems concurrently, waiting a defined period of time (e.g., a month or quarter) before turning off the old software, and incorporating any final system testing into the changeover process. A parallel change allows for significant testing before the old software disappears.

See  How to Boost Lagging Adoption Rates of New HR Technology and How to Introduce New-School HR Tech to an Old-School Team .

To help support and validate the new system's value, organizations should identify the lessons learned from the implementation and share them with management. What worked? What did not work? Which areas need improvement? Finally, create and adhere to a schedule of measurement or identification of milestones and related reporting during the planning process and assign a dollar value to each critical step to evaluate budgets.

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What is HRIS?

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HRIS, or human resources information system, is software  designed to help businesses meet core HR needs  and improve the productivity of both managers and employees. This is in large part possible because of automation and synchronized data, which may reduce costly redundancies and provide a trusted source of decision-making, respectively.

What does HRIS stand for?

HRIS stands for human resources information system . It’s related to human resources management system (HRMS) and human capital management (HCM), but there are some subtle differences  among the three.

HRIS vs. HRMS vs. HCM

Both HRIS and HRMS can help employers manage various aspects of HR, such as payroll, benefits administration and compliance. Where they may differ is talent and performance management, which is sometimes exclusive to HRMS. HCM, meanwhile, refers to the broad set of people management practices that can be accomplished with HRIS and HRMS.

What does an HRIS do?

HRIS helps businesses use technology  to enhance their people processes and make both HR and their organization as a whole more efficient. As a result, they may be better able to keep pace with evolving workplace trends.

What are the benefits of HRIS?

In addition to improved workforce productivity, employers may find that HRIS helps them:

Make data-driven decisions

Some systems have predictive analytics, including forecasting and modeling, which can help HR professionals make more informed decisions.

Enhance user experiences

HRIS with user-friendly interfaces and mobile apps may make it easier to complete job applications, enroll in benefits and perform other HR tasks.

Reduce time-intensive labor

Common HRIS features – such as automation, analytics and artificial intelligence – may help cut the labor costs associated with payroll, time and attendance, and other manual administrative work.

Accommodate business growth

Cloud-based technology is often capable of handling increasing numbers of employees, transactions and data volume, as well as expansions to new locations.

Maintain compliance

Some HRIS providers have monitoring capabilities to stay current with changing regulations and data security measures to help prevent incidents.

What are the features of HRIS software?

HRIS software offers personalized HR tools and scalable solutions that can help businesses tackle challenges as they grow. Some of the more common HRIS features include:

Recruitment and onboarding

HRIS helps recruiters scan resumes, perform preliminary candidate screenings and conduct background checks .

In many cases, an HRIS will automatically deduct taxes and benefits from employee wages, which saves time and helps reduce the risk of error. Some systems also offer flexible pay options .

Time, attendance and scheduling

Time tracking in an HRIS often supports  many types of workers and communicates directly with payroll to help improve accuracy.

Benefits administration

HRIS typically has broad capabilities to manage employer-offered benefits, such as health insurance  and retirement savings plans, as well as voluntary benefits.

Some HRIS have the ability to stay current with changes in tax laws and employment regulations as they occur.

Reports and analytics

A centralized data set for all HR metrics is sometimes available with HRIS. More sophisticated providers make data accessible on-demand and proactively push reports, alerts or actions to stakeholders.

Integrations

HRIS may integrate payroll, benefits and time tracking into a unified system. Some can also sync with other enterprise systems or allow end users to create custom integrations.

What are some examples of HRIS systems?

There are many examples of HRIS software available to organizations today. ADP, for instance, offers the following options based on business size:

• ADP Workforce Now® Designed for mid-sized businesses, ADP Workforce Now provides an all-in-one platform to manage payroll, talent, benefits, time, people, analytics and more.
• ADP Vantage HCM® Large, multinational companies based in the United States can manage their workforces and make strategic decisions on key growth drivers, like labor costs and turnover, with the aid of ADP Vantage HCM®.
• ADP Next Gen HCM Businesses that are expanding can rely on ADP Next Gen HCM to help them adapt to rapidly changing environments and people requirements.

How do I choose an HRIS?

Choosing an HRIS is an important decision that may influence if certain business goals are met. Although the buying process isn’t entirely linear, the general steps are:

• Identify problems or challenges with current HR processes
• Explore how an HRIS can help overcome those obstacles
• Build an HRIS requirements checklist
• Evaluate HRIS vendors against the checklist

Should I get an HRIS for my business?

Every business has different needs, but some may want to consider getting an HRIS if they struggle to:

• Keep pace with evolving workforce demographics
• Hire independent contractors and freelancers
• Stay current with changing regulations
• Recruit workers with specialized skills
• Analyze workforce data effectively
• Make the most of team-based work structures

What should an HRIS have?

An HRIS should have the ability to meet not just the challenges of today, but also those that arise in the future. Afterall, most businesses wouldn’t want to have to purchase a new system every few years.

HRIS providers who are capable of growing with their clients tend to:

• Have service plans that extend beyond implementation
• Invest in innovation and regularly enhance their products
• Use internal and external benchmarks to measure performance
• Provide consultative services and define best practices

How to get started

Organizations looking to purchase an HRIS typically start by convincing stakeholders  that a new approach to HR is needed. Business case proposals  might explain how existing processes are holding the organization back and outline the functional requirements necessary to move forward. During this presentation, project leaders should be prepared to answer questions and gather feedback. Businesses that address stakeholder needs from the beginning are more likely to find the right HRIS vendor and ensure a smooth transition.

See what other employers are asking about HRIS:

How do HRIS systems work?

HRIS systems work by integrating various HR functions into a unified system that shares data and outputs reports across the entire platform. In a typical example, information about an employee is entered during onboarding  and then disseminated to payroll, benefits and time and attendance. Later, that data may be updated and shared again, as is often the case when employees receive a performance-based raise or bonus.

Why is an HRIS important?

HRIS is important because it connects people and workflows in ways that may support daily operations and improve productivity. It also aids in the collection and management of data necessary for regulatory compliance .

How can HRIS help a company?

HRIS helps businesses create innovative workforce strategies and deploy them effectively. This may be beneficial for organizations interested in adapting to new generations of employees with different workplace expectations.

How does HRIS help recruitment?

Recruiters can use HRIS to create job posts, track candidate sources, run background checks and more. Some systems also offer compensation package benchmarking, which can help businesses compete for talent.

Does HRIS include payroll?

Because they are designed to alleviate administrative burdens, HRIS usually includes automated payroll , which can help save time and minimize mistakes.

Who uses an HRIS?

Businesses who need assistance managing the complexity of an evolving workforce tend to use an HRIS. This is especially true of enterprises that are seeking to grow, expand geographically or pursue mergers and acquisitions.

Is ADP an HRIS?

ADP is a global provider  of cloud-based HRIS and HCM solutions that unify payroll , time tracking, HR services , talent management, and tax and benefits administration. Our cutting-edge technology helps businesses transform HR  from an administrative function into a strategic business advantage.

What are the advantages and disadvantages of HRIS?

HRIS advantages include automated workflows, integrations between payroll and core HR services, and centralized data sets. Without the proper safety measures, however, these features could pose a security risk. Another potential drawback to HRIS is the cost, although, an effectively implemented and deployed solution should result in a positive return-on-investment (ROI) for an organization.

This article provides practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.

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Types of human resource information systems (hris).

Key takeaways

• There are five main types of HRIS systems: operational, strategic, tactical, comprehensive, and limited-function.
• Each type of HRIS system is designed to address specific human resource management needs, and different companies will benefit from different types of HRIS software.

We reorganized the article to make it easier to read, added infographics to help compare the different types of HRIS, and added some screenshots to provide real-world examples. We also revised the copy for clarity and length.

In this article...

What is an HRIS?

Human resources information systems (HRIS) are centralized repositories for employee data. They are designed to help HR teams streamline and automate a variety of functions ranging from basic HR tasks like payroll to more nuanced processes like performance management .

In some cases, an HRIS consists of multiple subsystems that work together to create a holistic view of an organization’s workforce. In other cases, an HRIS is a specialized, standalone tool that drills into one or two subsystems.

Learn more in our video overview:

In either instance, an HR consultant can help you determine which type of HRIS is best for your business based on your HR needs, goals, and priorities.

Also read: HRIS vs HRMS vs HCM: What Is the Difference in 2023?

5 types of HRIS and their use cases

All HR information systems fall into five main types based on function or scope:

• Operational HRIS
• Strategic HRIS
• Tactical HRIS
• Comprehensive HRIS
• Limited-function/specialized HRIS

Both limited-function and comprehensive HRIS solutions may house different quantities and types of data that fall across the three different functional types of information systems.

1. Operational HRIS

The operational HRIS category includes tools that assist HR staff and people managers with hiring, promotions, transfers, and other talent management needs. Operational HRIS solutions focus on improving existing systems by making them more efficient and impactful.

Applicant tracking system (ATS)

An applicant tracking system (ATS) logs all open positions within an organization and optimizes workflows to fill them as quickly as possible. ATS functions include syndicating job postings to multiple job boards, screening applications to identify qualified candidates, and identifying bottlenecks within the hiring process.

Performance management system

A performance management system stores employee information regarding performance appraisals. It supports employee retention, promotion, transfer, job rotation, contract termination needs, and other talent management concerns. A performance management system helps managers take action if an employee is under-utilized or in need of extra support.

2. Strategic HRIS

Modules and functions within strategic HRIS systems help with analysis, decision-making, and goal-setting in relation to human capital management. Strategic HRIS solutions often help companies with specialized hiring needs find — and retain — the right talent.

Workforce planning

Workforce planning tools help HR teams identify the necessary background and skills, responsibilities, reporting structure, and salary for any given role. This functionality helps develop strategies for filling skills and role gaps in the current workforce, which has downstream implications for recruiting strategies as well as learning and development plans.

Learning management system

A learning management system (LMS) supports succession planning as operational decisions are made regarding job rotations or promotions. It tracks skill sets for employees across the company and identifies employees who are ready to pursue additional training or certifications based on recent changes to their roles or responsibilities.

3. Tactical HRIS

The tactical HRIS category targets efficiency and compliance for internal workforce management. The tools and functionalities that fall in this category help HR leaders make decisions on how to best use existing resources for functions such as compensation, recruiting, training, and benefits.

External data aggregation

Tactical human resource modules aggregate external data related to a business’s competitors, industry, and compliance requirements. For example, Deel tracks compensation data across international markets to help determine whether a proposed payment rate is higher, lower, or on-par with similar roles in a specific geographic region.

Also read: HRIS Integration: Everything You Need to Know

Benefits administration system

Compensation and benefits management impact employee experience and are two of the largest business expenses. Therefore, company leaders have a vested interest in regularly reviewing the organization’s benefits package as part of an employee’s total compensation. If an HRIS indicates a particular benefit is being underutilized among employees, HR leaders may need to remind employees about the benefit or decide to invest in a different benefit instead.

Also read: The Key Benefits of HRIS Software

4. Comprehensive HRIS

As the name implies, a comprehensive HR information system functions as a one-stop shop for storing any information needed to perform nearly all HR management functions. It serves as a central repository for a wider range of data that supports operational, strategic, and tactical HR functions combined.

These three functions don’t operate in a vacuum; rather, they influence each other in different ways. For example, information about where a role fits into the reporting structure and how it contributes to the company’s goals serves both operational and strategic angles of job analysis and design.

It makes sense for larger businesses to use a comprehensive HRIS since it consolidates data across all three types of functional systems. This information provides valuable insight so HR and business leaders can make informed decisions quickly. Conversely, a limited-scope information system may be a worthwhile investment if the business has specific tactical needs that can’t be addressed by any all-in-one solution.

Smaller businesses, on the other hand, may want a simpler HRIS platform that fulfills only core human resources management needs such as payroll. In this case, a comprehensive HRIS may be overwhelming to implement and maintain. The higher cost also puts all-in-one HR suites out of reach for many smaller businesses’ budgets.

5. Limited-scope or specialized HRIS

In contrast to a comprehensive HRIS, a limited-function HRIS focuses on one or a few core information systems. They typically support a narrow list of HR functions, such as payroll and benefits administration .

No matter what HR function(s) a company focuses on with a limited-function HRIS, an employee information system is essential to the HR software. This system collects, archives, and tracks personal and professional employee records, including name, address, minority status, citizenship, education, past professional experiences, and much more.

Limited-function HRIS platforms are often less expensive compared to comprehensive HRIS solutions, and solo HR professionals can manage this kind of software alone. For these reasons, small companies with lean HR teams may find limited-function HRIS platforms more manageable.

Also read: Best HR Software for Small Businesses

How to choose the right type of HRIS

There are many HRIS solutions available that fit a wide range of needs, so the quest to find the best fit comes down to two questions: What kind of HR management functions does the business need, and how will it use the data it collects from those processes?

Companies that only need one or two core HR functions should look into a limited-function or specialized HRIS. These functions only require basic employee information, such as name, address, and Social Security Number, and demographic information. Because these systems are relatively lean, they can often be managed by a small HR team or even a sole HR manager or HRIS analyst.

As a company and its data grow in terms of both quantity and type, however, it will require a more comprehensive HRIS platform to handle that information effectively and appropriately. Comprehensive HRIS solutions are typically a bigger financial investment, but the efficiency and strategic insight businesses gain by adopting a robust system usually make the cost worth it.

Aside from function, businesses must consider their HR priorities when evaluating HRIS platforms. Operational HRIS modules focus on developing a company’s current workforce. Strategic modules support a company’s growth and succession planning efforts. Tactical modules house data to help HR make informed decisions about how to best use its existing resources.

Ultimately, the right type of HRIS depends on the unique needs your company faces now and in the future. Keep these needs top of mind as you explore our comprehensive list of solutions in our HR Software Guide .

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Faculty Resources

Assignments.

The Human Resources Management course includes a series of openly licensed written assignments and discussions aligned to specific learning outcomes and chapters. If you import this course into your learning management system (Blackboard, Canvas, etc.), all of the assignments and discussions (listed in the table, below,) will automatically be loaded into your LMS assignment and discussion-board tools. They can be used as is, modified, combined with your own assignments, or removed altogether.

The assignments in this course align with the following scenario:

You are a college senior who has been selected to participate in a hybrid internship/onboarding program with an elite HR research and advisory firm. Your training consists of a combination of formal education—specifically, enrollment in this Human Resource Management course—and a rotation in support of the principals of the firm. In your rotations, you will synthesize what you’ve learned in the relevant modules to address firm or client issues, conducting additional research as necessary and developing draft deliverables as instructed by the principal consultant. The quality of your deliverables – that is, your ability to convert learning into practical insight – will largely determine whether, at the end of the internship period, you are offered a position with the firm or simply thanked for your participation.

You can view them below or throughout the course.

Rubric for Assignments

There is also a sample rubric to assist you in grading. Instructors may modify these guidelines or use their own.

Discussions

The following discussion assignments will also be preloaded (into the discussion-board tool) in your learning management system if you import the course. They can be used as is, modified, or removed. You can view them below or throughout the course.

Rubric for Discussion Posts

Answer keys for the discussion posts are available to faculty who adopt Waymaker, OHM, or Candela courses with paid support from Lumen Learning. This approach helps us protect the academic integrity of these materials by ensuring they are shared only with authorized and institution-affiliated faculty and staff.

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Human Resources Management Inform ISM Group Assignment

With the increasing effect of globalization and technology, organizations have started to use information systems in various functions and departments in the last decades. Human resources management is one of the departments that mostly use management information systems. HR information systems support activities such as identifying potential employees, maintaining complete records on existing employees and creating programs to develop employees’ talents’ and skills. HR systems help senior management to identify the manpower requirements in order to meet the organization’s long term business plans and strategic goals. Middle management uses human resources systems to monitor and analyze the recruitment, allocation and compensation of employees. Operational management uses HR systems to track the recruitment and placement of the employees. HRIS can also support various HR practices such as workforce planning, staffing, compensation programs, salary forecasts, pay budgets and labour/employee relations. In this study, HRIS perception and HRIS interview were applied to HR employees in order to assess the effectiveness and use of HRIS in UNDP. The results of the research give valuable insights about the success and effectiveness of HRIS in the organization.

Related Papers

Scholars in many disciplines have considered the antecedents and consequences of various forms of trust. This paper generates 11 propositions exploring the relationship between Human Resource Information Systems (HRIS) and the trust an individual places in the inanimate technology (technology trust) and models the effect of those relationships on HRIS implementation success. Specifically, organizational, technological, and user factors are considered and modeled to generate a set of testable propositions that can subsequently be investigated in various organizational settings. Eleven propositions are offered suggesting that organizational trust, pooled interdependence, organizational community, organizational culture, technology adoption, technology utility, technology usability, socialization, sensitivity to privacy, and predisposition to trust influence an individual's level of trust in the HRIS technology (technology trust) and ultimately the success of an HRIS implementation process. A summary of the relationships between the key constructs in the model and recommendations for future research are provided.

Publisher ijmra.us UGC Approved

An integrated HRIS is a database shared by all HR functions that provide common language and integrates all HR services. A data base nuclear containing information about the competency is required of jobs and competencies of people by all HR functions. HRIS has increasingly transformed since it was first introduced at General Electric in the 1950s. HRIS has gone from a basic process to convert manual information-keeping systems into computerized systems. Because of the complexity and data intensiveness of the HRM function, it is one of the last management functions to be targeted for automation (Bussler & Davis, 2001/2002). This fact does not mean that HRIS is not important, it just indicates the difficulty of developing and implementing it compared with other business functions (e.g., billing and accounting system). Powered by information system and Internet, almost every process in the every function of HRM has been computerized today.

mosin sharief

A Computerised Human Resource Information System makes use of computer software to manage data about movement of human resources in the organisation. Management of human resource in an organization cannot work smoothly if the HRIS is not adopted properly. A HRIS generally should provide the capability to more effectively plan, control and manage HR costs; achieve improved efficiency and quality in HR decision making; and improve employee and managerial productivity and effectiveness The importance of HRIS system is multifaceted, ranging from operational assistance in collecting, storing and preparing data for reports, simplifying and accelerating the processes and controlling the available data, reducing labour costs for HR departments, and providing timely and diverse information to the management of the company, based on which it is possible to make quality strategic decisions related to human capital

Masters Degree

HRM (human resource management) is especially important in a knowledge-based economy, where ideas and expertise are greatly valued, and a creative and innovative workforce is necessary to meet the challenges of this new economy. Efficient and effective management of human capital is increasingly an imperative and complex process. As a result, there has been a considerable increase in the number of organizations gathering, storing, and analyzing information regarding their HRs through the use of a software which is HRIS (human resource information system). The growing importance of HRIS is due to the recognition of HR practitioners that IT (information technology) and IS (information system) should be a part of HR functions mainly to develop and use better HRM programmes. This adoption of HRIS by organizations combined with the increasing sophistication of this software, presents the HR function with new challenges which demands the HR professionals to participate and contribute fully to their companies, as true strategic business partners. This study attempts to identify the effectiveness and the importance of the use of HRIS on the HR functions of an organization. It includes the top management, managers, and executive of HR working in manufacturing, service and IT sectors. Results provide insights into HRIS practice, its effects, effectiveness and shows that HRIS is of direct significance verifies completeness of the HR function and also provides HR professionals with opportunities to enhance their contribution to the strategic direction of the firm.

Ra'ed Masa'deh

The study aims at investigating the extent of the applications of Human Resources Information Systems (HRIS) being practiced in Jordanian business organizations. The study is based on primary data collected through a structured questionnaire from the HR personnel of 236 out 275 of shareholdings companies. The results indicate that the extent of HRIS being practiced is considered to be moderate. This implies that there are some variations among business organisations in terms of their level of implementing of HRIS applications. The results also showed that the extent of HRIS applications being practiced were found varied among business organizations based on their type of business and length of time in business. However, there were not found varied due to their size of business.

Dr.KRISHNA C.Y.S

Mulyanyuma Aaron Ayeta

International Journal of Scientific Research in Science, Engineering and Technology IJSRSET

HRIS shape an integration between human resource management (HRM) and Information Technology. Even though these systems may rely on centralized hardware resources operationally, a small group of IS specialists residing within the personnel department increasingly manage, support, and maintain them. HRIS support planning, administration, decision-making, and control. The system supports applications such as employee selection and placement, payroll, pension and benefits management, intake and training projections, career-pathing, equity monitoring, and productivity evaluation. These information systems increase administrative efficiency and produce reports capable of improving decision-making.

pradeep kumar

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Finding a human resource information system (HRIS)

HRIS Comparison

• [WLOs: 1, 2, 3, 4] [CLOs: 1, 2, 3, 4, 5]

You are tasked with finding a human resource information system (HRIS) for an imaginary

organization of your choice with approximately 200 employees.

Prior to beginning work on this assignment,

• Review Chapter 13 and Chapter 17 of the textbook.

• Watch the following video, Table of Information.

Table of Information (Links to an external site.)

In your paper,

• Compare and contrast three human resource information systems. These systems can

be proprietary, open source, or a combination of both.

o For a list of proprietary systems please refer to the Table 4.3 Sample Vendors in

Chapter 13 of the textbook.

o For open source systems, consider reading 5 Best Free and Open Source HR

Software Systems (Links to an external site.) or the Best Open Source HRM and

ERP Solutions (Links to an external site.).

• Create a table of information to display the topics of the chosen HRIS systems

o For help creating the table of information, watch the Table of Information (Links

to an external site.) video.

• Select one of the three HRISs.

o Provide an analysis that addresses the topics from the human resources and

talent management list below:

▪ Talent management

▪ Recruiting

▪ Employee information

▪ Training and development

▪ Performance

▪ Termination and retention

▪ Payroll and taxes

▪ Holiday, sickness, vacation, and absenteeism

▪ Compensation

▪ Health insurance

▪ Direct deposit

▪ Job postings

▪ Employee assistance programs

▪ Job descriptions

• Provide three recommendations how you would modify the HRIS for use by the

organization.

o Support your recommendations with credible sources.

The HRIS Comparison final paper

• Must be eight to 10 double-spaced pages in length (not including title and references

pages) and formatted according to APA Style (Links to an external site.) as outlined in

the Writing Center’s APA Formatting for Microsoft Word (Links to an external site.)

• Must include a separate title page with the following:

o Title of paper in bold font

▪ Space should appear between the title and the rest of the information on

the title page.

o Student’s name

o Name of institution (The University of Arizona Global Campus)

o Course name and number

o Instructor’s name

• Must utilize academic voice. See the Academic Voice (Links to an external site.) resource

for additional guidance.

• Must include an introduction and conclusion paragraph. Your introduction paragraph

needs to end with a clear thesis statement that indicates the purpose of your paper.

o For assistance on writing Introductions & Conclusions (Links to an external site.)

and Writing a Thesis Statement (Links to an external site.), refer to the Writing

Center resources.

• Must use at least five credible sources in addition to the course text.

o The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external

site.) table offers additional guidance on appropriate source types. If you have

questions about whether a specific source is appropriate for this assignment,

please contact your instructor. Your instructor has the final say about the

appropriateness of a specific source.

o To assist you in completing the research required for this assignment, view Quick

and Easy Library Research (Links to an external site.) tutorial, which introduces

the University of Arizona Global Campus Library and the research process, and

provides some library search tips.

• Must document any information used from sources in APA Style as outlined in the

Writing Center’s APA: Citing Within Your Paper (Links to an external site.)

• Must include a separate references page that is formatted according to APA Style as

outlined in the Writing Center. See the APA: Formatting Your References List (Links to an

external site.) resource in the Writing Center for specifications.

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Human Resource for Health Information System

Any Human Resource for Health Information System also known inside health care segment as human resource information system is usually a system for accumulating, processing, managing and disseminating data and home elevators human resource for health. Depending on the quality of development of a country’s health care system and the business of its labourforce, an HRHIS can be computerized or paper-based, and including home elevators numbers and submission of health workers and track the career information.

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