What is a Human Resource Information System?
Human Resource Information System (HRIS) is basically a technological software system that manages an organization’s human resources activities.
By automating the process of creating employee-related records like salary, employment history, performance reviews, annual evaluations, and training records, these systems improve the efficiency of human resource management.
HRIS is most commonly used to manage employees in manufacturing industries. It helps the companies to maintain records and manage the employees. Thus it can be used in many ways, depending on the needs of the businesses. This software assists the HR managers in handling the recruitment process effectively, maintaining documents and managing payrolls.
Applications of HRIS
The efficiency of HRIS systems can produce more efficient and faster outcomes that can be done on paper. Some of the many applications of HRIS are Clerical applications, applicant search expenditures, risk management, training management, training experiences, financial planning, turnover analysis, succession planning, flexible-benefits administration, compliance with government regulations, attendance reporting and analysis, human resource planning, accident reporting and prevention and strategic planning. (Human Resource Information System)
With the many different applications of HRIS, it is difficult to understand how the programs benefit companies without looking at companies that have already benefited from such programs.
One such company is IBM. IBM has a paperless online enrollment plan for all of its employees. The online enrollment saved the company 1.2 million per year on printing and mailing costs, and the employees enjoy working with the online plan.
“Since we began offering online enrollment, we have learned that employees want web access,” Donnelly [Senior Communications Specialist] says, so they can log on at home rather than through the company intranet. So the company has been working to implement a web-based enrollment system that employees and retirees can access from anywhere. By utilizing the flexible benefits that HRIS offers, IBM was able to cut costs and give employees the freedom to discover their benefits on their own time and pace.
Another company that has taken advantage of HRIS applications is Shaw’s Supermarkets. For Shaw to better manage its workforce, the company decided it was time to centralise its HR operations. After looking at different options, Shaw’s decision to implement an Employee Self Service (ESS) system. The use of self-service applications creates a favourable situation for HR. ESS gives HR more time to focus on strategic issues, such as workforce management, succession planning, and compensation management, while at the same time improving service to employees and managers and ensuring that their data is accurate. With this solution, employees have online access to forms, training material, benefits, and other payroll-related information.
By giving employees access to their personal information and the ability to update or change their information as needed, HR was given more time to focus on other issues. Understanding the different applications of HRIS will allow companies to increase employee efficiency and reduce costs.
Measuring the Effectiveness of HRIS
Measuring the effectiveness of a Human Resources Information System (HRIS) is crucial for organizations to ensure that their HR functions are efficient and aligned with strategic goals. Here are some key metrics and methods to measure the effectiveness of an HRIS:
1. User Adoption Rate: This metric assesses how effectively employees are using the HRIS. It measures the percentage of employees who actively engage with the system, log in regularly and utilize its features.
2. Time Saved: The HRIS should streamline HR processes and reduce manual tasks, saving time for both HR professionals and employees. By comparing the time spent on tasks before and after implementing the system, organizations can quantify this improvement.
3. Accuracy and Data Integrity: An effective HRIS ensures accurate data maintenance, reducing errors in employee records such as personal information, benefits selections, performance evaluations, etc. Regularly auditing data accuracy can evaluate whether the system is performing well in maintaining reliable employee information.
4. Cost Savings: Assessing cost savings is essential to determine if investing in an HRIS has been financially beneficial. Compare expenses related to paper-based processes or outdated systems with costs associated with implementing and maintaining an efficient HRIS.
5. Self-Service Utilization: A good HRIS provides self-service functionalities that allow employees to update their information, submit leave requests, access pay stubs, etc., without requiring assistance from HR personnel. Monitoring self-service utilization rates indicates how effectively these features are being utilized.
6. Employee Satisfaction: Conducting surveys or gathering feedback from employees regarding their experience using the HRIS can provide insights into user satisfaction levels. Monitor whether employees find it user-friendly, and accessible, and if it meets their needs effectively.
7. Compliance and Reporting Capabilities: An effective HRIS should help organizations meet legal requirements by generating reports necessary for compliance purposes (e.g., Equal Employment Opportunity reporting). Assessing its ability to generate accurate reports can indicate its effectiveness in meeting regulatory obligations.
8. Training and Support: It is essential to ensure that HRIS users, including HR professionals and employees, are trained adequately to use the system effectively. Regularly assess training needs and evaluate the support provided by the HRIS vendor or internal IT team.
When measuring HRIS effectiveness, it is crucial to establish a baseline before implementing the system and track progress over time. Regular monitoring of these metrics can help identify areas for improvement, optimize system utilization, and justify ongoing investments in the HRIS to senior management.
Security of Human Resource Information System
The privacy of employee information has become a significant issue in recent years. With identity theft becoming a common problem, employees are becoming more sensitive about who sees their personal information and the security it is kept in. By ensuring employee information kept in the HRIS is relevant to the company and ensuring there is limited access (password protection) to such information, companies can make their employees more secure with the safety of their information.
Whether electronic or paper, employee files deserve to be treated with great care. Establishing security and end-user privileges calls for a balance of incorporating HR policy, system knowledge and day-to-day operations.
Conclusion
IBM, Terasen Pipeline, CS Stars LCC, and Toshiba America Medical Systems, Inc. are good examples of companies facing issues similar to human resources information technology and human resources information systems. All of these companies know the importance of new technology, human resources information systems, and data security.
The remainder of this paper provides synopses of more companies facing human resources issues, how the company responded to the issues, and the outcomes of the company’s responses.