While working with many employees at the workplace, HR has to manage information about all of them for accurate decision-making skillfully.
Such a daunting task demands a lot and leaves less time for other HR responsibilities.
An HRIS can potentially be an excellent investment for managing information about the employees and maximizing efficiency.
In this article, you will discover what HRIS software is, its types, and eight HRIS software to take care of HR-related activities.
So let’s take it from the top.
What is an HRIS Software?
A Human Resource Information System, aka HRIS, is a system that digitizes human resource activities and processes.
You can also say that an HRIS is a software that takes care of human resource activities like employee information management, accounting, payroll, etc.
As the HRIS takes care of all those tasks, it becomes easier for HR to make better decisions by focusing more on analyzing the data than trying to collect and compile it. In addition to that, the entire organization can work more efficiently and smoothly.
Most HRIS software usually have features needed for end-to-end human resource management.
Benefits of HRIS Software
Automated Processes for Faster Completion of Tasks
Regular HR duties like tracking leave days, attendance, payroll, etc., are all automated by an HRIS. This helps you save time if you have gigantic teams to handle.
Easy Recruitments, Candidate Assessment, and Onboarding
An HRIS can collect and scan many resumes at a time to find the best candidate for a position. These features make HR’s job easy by eliminating the need to check all resumes themselves.
Even after a candidate is finalized, the HRIS can take care of a lot of onboarding tasks.
Increases Collaboration and Internal Communication
An HRIS is also meant for all the employees to stay connected with the HR team. They can find out their attendance data, payslips, performance analysis, and request leaves or promotions through the HRIS.
Employee Reports and Analysis
An HRIS can track all performance metrics set for the employees and create weekly, monthly, quarterly, and yearly reports for detailed analysis.
Faster and Accurate Decision Making
Any decisions about managing the employees can be taken effectively by analyzing all the reports and reading the employee information from the HRIS database.
Integration with other Tools
An HRIS can be integrated with any other tools your company uses for various tasks. One of the most common practices for integration is integrating a project management system with an HRIS.
This enables HR to see which employees have done what kind of work and helps them generate ratings for every employee.
Now that you know what HRIS software is, here are the things to look for when investing in HRIS software.
How to Choose the Right HRIS Software?
Understanding Your Needs
The first and the most important thing before you pull the trigger is understanding what exactly you want from the HRIS.
There are different types of HRIS software (more on this later). Start with narrowing down your choice depending on those types.
Then, list the tasks you want to automate and manage using an HRIS and see the total workforce you’ll be expected to manage.
Consulting Other Departments
Another factor to consider before getting an HRIS is consulting all department managers, IT support, and the entire HR team.
This will give you an insight into what all things need to be taken care of.
Additionally, consulting others in your company may open you up to a few suggestions that can be used when buying an HRIS.
Set a Budget
Different types of HRIS and vendors will have solutions that offer different packages based on their features.
If you set a budget according to your needs and expected return on investment, you can narrow your list down to just a few software.
You should also consider getting software that is either a one-time purchase or has longer-duration packages that provide certain discounts.
Talk with the Vendors and Understand the Software
Once you’ve made a list of HRIS software you think are good enough for your needs, connect with the vendor.
Set up a meeting to discuss how the system works and thoroughly understand all the features.
This will give you an idea about the actual workings of on-paper functionality that the vendors promise. Also, you can compare these software with each other to make the right decisions.
Participate in Demo Sessions
If there are free demos for the HRIS of your choice, do not miss out on them. A demo can be amazing to actually get a hands-on feeling of the functionality and intricacies of the software.
If you keep these factors in mind, you can identify a great HRIS software.
Here’s a list of some of the best HRIS software we’ve found. Take a look and see which is an excellent fit for you and your organization.
Freshteam HRIS is a great software for employee management tasks like onboarding, offboarding, managing employee information, and attendance tracking.
- Configure the system for onboarding and efficiently collect and store employee documents on the platform
- Analytical data representation and easy reports for candidate pipelines and changes in the workforce
- A self-service portal allows employees to add in and out times, leaves, etc.
The Freshteam HRIS is an excellent tool for employee information and workforce management. You can try the software for free with a 21-day trial to see if it’s the right fit.
Rippling is a comprehensive HRIS that offers a wide range of features that can take care of pretty much everything for an HR.
- Integrates with the likes of Slack, Zoom, Google Workspace, etc.
- Manage employee changes, onboarding, and offboarding tasks easily
- Handles compensation tasks like managing the payroll, automatic tax deduction, etc.
- Manages other employee benefits like health insurance
- Employee Time and Attendance management and tracking
- Built-in Learning Management System for product training, code-of-conduct training, etc.
Rippling is probably one of the best solutions for HR management but comes on a pricier side.
Zoho People is an employee data and performance tracking HRIS with functions like LMS, Analytics, and customization features, along with core HR features.
- Employee management features like personnel information collection and storage, classifying workforce, etc.
- Attendance tracking features and time-off management
- Manages documentation when onboarding a new employee
- Corporate LMS with all types of training systems
- Customizable workflows and self-service system for all employees
- Easy integration with Zoho Payroll for managing compensation and benefits for your employees
The standard Zoho People HRIS is only great for employee management and a few other HR tasks. If you’re looking for payroll functionality, you’ll have to get Zoho Payroll along with this HRIS, which will also add up to the cost.
ADP is an HRIS that offers functionality like employee time management, payroll, benefits and insurance, compliance services, and HR outsourcing.
- Great payroll processing with faster deposits and integration with business software
- Efficient and automated workforce management with time tracking and attendance solutions
- Easy recruitment and onboarding with screening services for proper hiring
- Access to HR outsourcing for all major HR tasks
- Compliance services like taxes and employee verification
ADP is a great HRIS for small businesses that don’t have a large HR team to manage all the tasks. The HR outsourcing service is also pretty handy for startups who want to get the business running as fast as possible.
Bamboo HR is an HRIS for streamlining the human resource information system and organizing all data securely. It also offers reports and analysis, view customizations, and more.
- Does data collection and management for real-time viewing and modifications
- The collected data can also be represented in the form of expressive reports for analyzing in-depth.
- Customize your information system to access documentation with ease and incredible flexibility
Bamboo HR is a limited function HRIS that specifically targets data documentation, reporting, analysis, and safe storage. This makes it an incredible solution for small companies that need HR data management.
Zenefits is an HRIS designed for easy onboarding, managing employees, PTO tracking, and performance reviews.
- Simplified process of curating and providing employee benefits like health care and commute compensations
- Fast and easy payroll processing for all employees with a lot of advanced features
- Efficient self-onboarding of new recruits with easy documentation and other activities which they can do themselves
- Compliance compatible and easy tracking of important deadlines for a great scheduling
The Zenefits HRIS is available in three different packages, which you can buy depending upon your organizational needs.
Natural HR is an all-in-one HRIS solution for mid-size organizations to streamline all HR tasks easily.
- Easy employee management with accurate data collection and storage
- Time tracking features include in and out, leaves, extra hours, etc.
- Great automated payroll management with timely salary deposits and changes
- Exhaustive performance analysis and reporting
- Insights into workflow management and changes
- Handling employee benefits with ease
Natural HR is a one-stop solution for all HR needs of a mid-size or enterprise-level organization.
Paycor is an HRIS for workforce management and employee information systems.
- Easy mobile punching system for employees to clock in and clock out the working hours
- Track and measure employee performance where HR can create performance reviews, manage transfers and promotions
- Employees can quickly request time off or leave.
- New recruits can upload their personal information before the onboarding process even starts.
- Get insights using total compensation trends, current workforce strength, department-wise differentiation, etc.
Paycor is another limited functionality HRIS designed explicitly for efficient workforce management and employee information tracking.
How Are HRIS Software Different from Other HR Software?
Differentiating from all of the different HR software is where we go in a confusing spot.
The HR software have become more complex and all-encompassing that they have become somewhat indistinguishable with very few differentiators.
There are 3 main kinds of HR software:
#1. HRIS – Human Resource Information System
HRIS is the most common of the three and is pretty much an entry-level HR software. You can define it by saying that it manages employees, includes policies, and aids different processes.
Some of the common features of an HRIS are recruiting, maintaining attendance systems, workflows, personnel tracking, administration, training, development, etc.
#2. HCM – Human Capital Management
HCM does everything that an HRIS can do and adds a few extra features along with it.
The more comprehensive software solution includes talent management capabilities like compensation, learning and development, succession planning, and career planning.
An HCM also has features like onboarding process management, performance tracking, position control, etc.
#3. HRMS – Human Resource Management System
HRMS is considered the most comprehensive system of all three and has all features offered by an HRIS and an HCM. Many features overlap between HRMS and HRIS, but the former adds a different layer to employee management.
An HRMS includes features like automatic tax calculation, processing, deduction, and deposition of salaries. It also has time and labor management, which is excellent for tracking project times to improve productivity and profits.
And that statement would be hard to argue with as most companies that offer these software are constantly adding more and more to these sophisticated tools.
This leads to using all HR tools interchangeably.
Back to HRIS, let’s discuss the types of HRIS software you can use.
Types of HRIS Software
At the core, all 5 types of HRISs have basic functionality that offers employee management, automation, self-service, and centralized databases.
These are some of the essential features, and beyond this, all different HRIS software have a set of unique functionality.
Here’s what these types are about:
#1. Operational HRIS
Operational HRISs are great for data and resource collection and reporting. It can maintain employee records, position details, and performance appraisal information.
HR managers can use an operational HRIS to manage performance, promotions, hiring, internal personnel changes, and appraisals.
These are all standard HR functions that can help the organization by eliminating the repetitiveness of these tasks and increasing efficiency.
#2. Tactical HRIS
Tactical HRISs focus primarily on bigger decision-making, which can potentially impact the organization in a big way.
Along with general functions like training, vacancies, recruitment, and compensation, it also helps in resource allocation, development, and job analysis.
A Tactical HRIS can deal with external data like reports from the competitor analysis, union information, notices and requirements by the government, etc.
#3. Strategic HRIS
Strategic HRISs help with company analysis for creating a strategy and making decisions accordingly.
These software assist in workforce planning and mapping out areas and departments which will have a lot of vacancies and requirements in the future. They also aid in workforce-related goal setting by analyzing the budget and market trends.
A Strategic HRIS is made for mid-size organizations that want to grow further and expand their workforce.
#4. Comprehensive HRIS
As the name suggests, a Comprehensive HRIS includes everything the above types have. Organizations that need the functionality of operational, tactical, and strategic HRIS can use this software to streamline their management.
A Comprehensive HRIS includes features like employee information management and vacancy calculations, aids recruitment, and helps performance tracking and analysis.
The Comprehensive HRISs are also more expensive and offer a standard platform for everything an HR executive needs.
#5. Limited Function HRIS
This type is the complete opposite of a comprehensive HRIS. A Limited Function HRIS is highly customized and targets very specific HR tasks. Usually, this HRIS has only one function and has an exhaustive system for just that.
A limited-function HRIS can be an amazing solution for smaller organizations that don’t have too many requirements or only need one thing to be done.
They’re extremely easy to learn and operate, have the ability to be handled by a single HR executive, and are very affordable.
An HRIS can change how an organization’s employees are managed.
With better tools and functions, HR can keep the employees satisfied while getting the best outcomes for the organization.
However, the important thing to remember is that an HRIS will only be useful if you know your requirements.
So, make sure you factor in everything you read in this article before making a big purchase decision.