Human resource information systems (HRIS) assist businesses in managing employee administration. Human resource managers utilise HRISs to manage payroll, training modules, and talent acquisition.
We went into the details of dozens of the top HRISs on the UK market and ranked them to determine the finest HRIS solutions for small businesses overall.
What is an HRIS?
HRIS software (also known as a human resources management system, or HRMS) organises all types of worker-related data points, such as sensitive identifying information such as an employee’s age, gender, and address; an employee’s workplace information such as their title, pay scale, and department; the benefits they’ve opted in to; and their timecard and time-off requests.
HRIS programmes, like other HR software platforms these days, are browser-based SaaS solutions that act as a one-stop shop for storing up-to-date information about a company’s staff.
Though most of this information can be acquired and recorded into the HRIS software during the hiring process, the system must also be easily editable in case any changes or additions to an employee’s file are required. An HRIS can also provide HR professionals with the capacity to generate detailed reports that management can use to identify and address persistent patterns in the workforce.
Benefits of an HRIS
Implementing an HRIS for your organisation becomes increasingly vital as your team grows and the requirement to organise sensitive personnel data becomes more obvious. The following are the primary advantages of using an HRIS:
#1. Keeping records
An HRIS is a record-keeping system that keeps track of any changes to employee-related information. When it comes to personnel data, the HRIS can be viewed as the one source of truth.
#2. Adherence
For compliance purposes, some data is gathered and retained. This contains material for identifying personnel in the event of theft, fraud, or other misbehaviour; first contact information in the event of an accident; citizen identification information for the tax office; and necessary certification expiration dates. All of this data can be saved in the HRIS. Data must be stored safely and securely in accordance with GDPR regulations.
#3. Effectiveness
Having all of this information in one location not only improves accuracy but also saves time. Some businesses still store a lot of information about their employees on paper. Finding the proper folder and the right document can consume a significant amount of staff work.
#4. Human resource strategy
The HRIS allows for the tracking of data needed to develop HR and company strategies. Depending on the organization’s priorities, different data will be required to be tracked. This is where the HRIS comes into its own.
#5. Self-Service HR
Another advantage is the possibility of providing self-service HR to employees and supervisors. Employees can now manage their own affairs. When done correctly, the HRIS can provide a positive employee experience. Keep in mind that not all HRIS systems provide this in an easy-to-use manner!
Using an HRIS provides numerous advantages for the organisation, HR, and the individual. When you have between 30 and 50 employees, using an HRIS becomes intriguing.
Managing this basic information in Excel has become difficult at this point, and simple procedures such as authorising staff holidays must be standardised.
Large organisations, which often utilise more advanced HRIS systems to handle many HR services, benefit the most from using an HRIS. Smaller businesses would benefit from a more basic HRIS.
What to Look For in HRIS Systems
The correct HRIS can significantly improve your company’s HR department. It’s not so much about the tools as it is about the purpose those tools will serve for your company. As a result, you should hunt for an HRIS that meets your company’s requirements.
When selecting an HRIS, examine your staff size, the reporting and monitoring features you require, how the system manages operations such as training and payroll, and how easy the system is for your employees.
As with other services you might add to your small business, you should look for a feature-rich option that will best meet the demands of your organisation. When looking for an HRIS, keep these qualities in mind.
#1. Employee database
A good HRIS offers you, your HR department, and your other employees access to everyone on the team’s contact information. An HRIS can foster communication between employees and departments by offering a database and directory for each employee, resulting in a more productive workplace.
#2. Tracking and onboarding of applicants
It takes time and effort to recruit, hire, and train new team members. Hiring managers at your organisation may see any candidates who apply, leave notes about interviews, and track where any candidate is in the application process with a decent HRIS. After being hired, the new employee can use the HRIS to complete company-approved training courses and complete the onboarding process.
#3. Administration and tracking of benefits
Your employees must maintain track of their registered benefits, and you must ensure that the benefits you provide are effective. With an HRIS in place, both parties have a centralised site to track 401(k) plans, manage healthcare insurance, and make required adjustments.
#4. Scheduling and payroll
There are numerous online payroll options available, some of which are integrated into an HRIS platform. Managers can track employees’ time and attendance using an HRIS, while individuals can use the system to clock in and out, request paid time off, and examine their paychecks.
#5. Customizable reports
With that much information at your disposal, you’ll want to do something with it all. You may use an HRIS to provide useful reports that illustrate where your firm is succeeding and where it needs to improve. You can ensure that your organisation performs at peak efficiency by quantifying the data.
Types of HRIS
Along with the various functionalities of an HRIS, there are other sorts of platforms that relate to various aspects of HR and data use cases.
#1. HRIS for operations
This system attempts to decrease, if not eliminate, repetition in personnel data filing and organisation. It can handle everything from employee needs to interpersonal aspects of your team to government law compliance.
#2. Tactical HRIS
By definition, this is an employee-facing system. A tactical HRIS is designed from the ground up to inform and support the allocation of corporate resources. It aids in processes such as recruitment, onboarding, and job analysis.
#3. All-inclusive HRIS
A complete HRIS, as the name implies, organises and examines HR files. The platform functions as an integrated database, storing all sensitive worker data in one location. These data elements contain an employee’s job title, affirmative action files, skill inventory, and other HR information.
#4. HRIS Strategy
A strategic HRIS addresses the complete workforce as opposed to merely employee-facing tasks. Workforce planning, labour negotiations (if your staff are unionised), and other specialised HR needs are some applications for this type of HRIS.
The 4 Best HRIS Systems in the UK
There is a vast range of systems available to fulfil HRIS demands – so many, in fact, that attempting to dig through and review them all to decide the best picks can be intimidating. We’ve done some research for you and found some of the greatest HRIS systems on the market today.
#1. Oracle
Large corporations with several foreign offices and a sizable budget use Oracle for its powerful HRIS platform, which enables them to monitor and report on not only HR but also Supply Chain Management, Customer Relations, and Enterprise Performance Management. Its functions include the following:
- Employee data, workload management, and development tools are all integrated into one system.
- Provides complete statistics on business performance, allowing you to make sense of a large and dispersed team.
- The cloud software ensures strong security while mixing information from within and outside the company.
- Oracle’s AI solutions virtually eliminate human mistake while also delivering additional business intelligence.
#2. PeopleHR
PeopleHR provides a variety of HRIS software packages based on your company’s requirements. Their Enterprise bundle includes an effective Applicant Tracking System to streamline recruitment processes – this is great for large firms with various teams who wish to keep their hiring under control. The Enterprise package costs £6 per employee per month and includes all recruitment features. Other features include:
- Using a video interview tool, you can meet prospects face to face.
- Create and distribute compelling and thorough job advertisements to attract qualified candidates.
- Using PeopleHR’s score system, assess candidates on important abilities.
- With the mobile-optimized app, you can keep track of your employment pipeline on the go.
#3. ADP
ADP’s HRIS solution for businesses with more than 200 employees combines payroll software with HR activities. Your employee information is used to automate payroll and ensure that everyone is paid the correct amount. Other functions include:
- Depending on business requirements, you can opt for fully or partially handled payroll administration.
- Take comfort in knowing that you are always in compliance with HMRC requirements.
- Aside from payroll, ADP provides complete data for international corporations, ranging from team costs to headcount.
- You can also outsource your financial responsibilities for a fee.
#4. Zoho
Zoho is a great HRIS system for businesses with employees who work shifts, part-time, or irregular hours. You can create and amend your timesheets online to simply keep track of attendance and hours spent. Its functions include:
- Log your team’s working hours with the time tracker.
- Create your own approval process for line managers to sign off on working hours and overtime.
- Keep up to date with reports on personnel attendance and project time spent.
The Challenges of HRIS Systems
Every company is distinct and faces its own set of obstacles. These issues should be addressed by your HRIS. The following are some of the most common HRIS system issues.
#1. Data confidentiality and security
One of the most pressing issues in administering an HRIS is assuring employee data privacy and security. These systems include large volumes of sensitive and secret data, which must be safeguarded. A fundamental HRIS difficulty that organisations confront is implementing a complex enough solution that any user who enters the system can acquire exactly the information they need to execute a task without accessing information that they do not have authorization to read.
#2. Regulations and adherence
HRIS data access regulations must also be consistent with regulatory requirements. Every organisation must guarantee that its HRIS is in accordance with constantly changing rules. This is especially difficult for companies with a global presence. The usefulness and effectiveness of the system are dependent on each user’s ability to make transactions swiftly and conveniently without breaching confidentiality or breaking the law.
#3. Business disruption
Changes to HRIS features can also provide difficulties. Organisations sometimes struggle to keep up with HRIS upgrades and enhancements in an era of continuous disruptive innovation. Similarly, choosing the best HRIS for your company might be difficult. With so many options and features to pick from, it’s critical that you select a system that best matches with your business goals and avoid being distracted by components that may or may not be relevant.
When to Get an HRIS System
Before you require an HRIS, your firm will most likely see some growth. The amount of growth required for an HRIS to be worthwhile depends on your company’s conditions, but a decent indicator is when it becomes inconvenient for your HR employee or department to conduct their work manually. When you observe a bottleneck in HR, consider implementing an HRIS.
How Do I Implement an HRIS?
Work with your IT department to ensure that staff have appropriate access to the HRIS. HR departments and supervisors will have greater access to data than employees. Employees will have access to their own profiles.
Are HRIS Solutions Secure?
HRIS solutions are intended to safeguard the sensitive data included in HR records. Organisations can assist in maintaining data security by mandating that data be accessed exclusively through a virtual private network (VPN).
Is an HRIS Hard to Learn?
It will take some time to learn the ins and outs of an HRIS. Training and tutorials can help to shorten the learning curve and allow you to fully utilise the software solution’s potential.
What is an HRIS Analyst?
The HRIS analyst assists with the HRIS. This includes problem-solving research and acting as a liaison with other departments such as finance and payroll.
What is the Difference Between HRIS and HRMS?
HRMS is an abbreviation for Human Resource Management System. The two acronyms basically refer to the same sort of software, which combines several capabilities to assist you in managing all aspects of human resources. There is no real distinction between the two.
How Much Does HRIS Software Cost?
The cost of HRIS systems varies greatly based on the functionality included and the size of your firm. Some products will have the pricing readily displayed on their website, while others may only provide you with an estimate once you contact them.
Conclusion
Most businesses will agree that an HRIS can assist to streamline operations, increase employee service, and, ultimately, improve the employee experience. In an increasingly competitive hiring landscape and an employment environment where employees want more freedom, flexibility, and work-life balance, the appropriate HRIS may alleviate the strain on you, your HR employees, and your entire workforce.
We hope you found this blog post helpful in selecting the correct HRIS systems for your company and that you learned as much as you could from it.
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