Benefits of Human Resource Information Systems for Modern Organizations

DOI : 10.17577/IJERTCONV3IS18034

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Benefits of Human Resource Information Systems for Modern Organizations

C Rani

Research Scholar,

Sri Padmavathi Mahila Viswavidyalayam, Tirupati

Prof J. Katyayani

Professor, Department of Management Studies, Sri Padmavathi Mahila Viswavidyalayam, Tirupati

Abstract – A human resource information system (HRIS) is computer software employers use to manage the human resources functions of their organization. The most obvious effects that human resource information systems in the HR department. Once organization successfully implemented human resource information systems you can expect your HR workers to be more motivated and less stressed, as well as able to focus their efforts on various tasks that they had little time for prior to the human resource information systems. HR productivity and efficiency will be greatly improved thanks to your addition of human resource information systems, and you can expect new strategies on employee retention and training to arise quickly thanks to the extra time that HR now has.

Keywords-HRIS, organization, retention and strategies


    The term "human resources information systems" (HRIS) often is used interchangeably with human resources management system (HRMS) and human resources information technology (HRIT). Any of these terms is used to describe the computer and information technology a company utilizes to automate human resources functions and employment actions. A HRIS, or Human Resource Information System, is a software solution for small to mid-sized businesses to help automate and manage their HR, payroll, management and accounting activities. 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. A HRIS offers HR, payroll, benefits, training, recruiting and compliance solutions

    Most are flexibly designed with integrated databases, a comprehensive array of features, and powerful reporting functions and analysis capabilities that you need to manage your workforce. This can give back hours of the HR administrators day previously spent attending to routine employee requests. A HRIS also facilitates communication processes and saves paper by providing an easily- accessible, centralized location for company policies, announcements, and links to external URLs. Employee activities such as time-off requests and W-4 form changes can be automated, resulting in faster approvals and less paperwork.

    An affordable Human Resource Information System (HRIS), for example Sage HRMSs e-capabilities, allows companies to manage their workforce through two powerful main components: HR & Payroll. In addition to these essential software solutions, HRIS offers other options to help companies understand and fully utilize their workforces collective skills, talents, and experiences.

    A human resource information system (HRIS) is computer software employers use to manage the human resources functions of their organization. It has the capability to maintain employment records of all staff members, and employers can use it to collect metrics surrounding the firms staffing, performance management, compensation and benefits activities. Although not all companies utilize an HRIS system, there are many benefits to doing so.


    The human resources department within an organization is highly critical to the organization as a whole. Its many functions serve as a supportive background for the company by providing everything from skilled and talented labor to management training services, employee enrichment opportunities and more. The fact is that this department is so critical and performs so many important functions for the organization that human resources professionals need access to the right tools and resources in order to perform their tasks more efficiently and effectively.

    A human resources information system, or HRIS, is a type of software program that can be utilized within the department to help human resources employees and managers improve their productivity and the results of their efforts. Upon a closer look at the benefits of HRIS, you may determine that this is a type of software program that you want to implement in your organization.


Perhaps the biggest benefit that the use of an HRIS system adds to a business is its ability to create reports and presentations. An HRIS system typically holds all information surrounding the firms human resources initiatives, including details regarding the group's hiring practices, such as a comprehensive listing of all job applicants, an up-to-date index of job openings and

electronic copies of each employees on boarding paperwork, such as I-9 and W2 forms. It also holds data regarding the salary and incentive compensation of each staff member. Results of annual performance appraisals and any disciplinary actions that have been taken toward members of the team are included, as well.

Because these figures are held in one database, a business owner possesses the capability of running a variety of detailed reports that encompass some or all of this information. For example, when looking to hire additional staff, he can run a report of past candidates who possess a specific skill set. Alternatively, he can run a compensation report to obtain needed information when preparing the annual budget.


In support of a firms staffing efforts, many HRIS systems provide a sophisticated interface allowing its use by both internal employees, as well as external job applicants. An HRIS system allows candidates for open positions to submit their resumes and contact information to a potential employer from a remote computer. The system then collects the information and archives it so it is easily accessible by the hiring manager. When seeking candidates, the manager is able to perform detailed searches of collected resumes, using a variety of queries, including location, level of education, years of professional experience and technical skill set. In addition, the software also allows current employees to electronically apply for new positions.


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

      Collaboration: Gives employees self-service access to update critical information and create richer profiles to engage with others in the organization to get work done more easily and efficiently. Discussion groups and group workspaces allow valuable business insights to be shared as they happen and enable co-workers to virtually gather around a project to collaborate, share documents and perform tasks together. Managers can utilize the corporate data and benchmarks to gather the crucial information necessary for making key strategic business decisions, such as identifying and evaluating employee potential for promotions or transfers.

      Integration Platform: The "best-in-show" of these HRIS solutions provide a simple solution for integrating your Huan Resources Information System with Payroll, Benefits, Time Management and other applications,

      enabling you to complete integration projects in less time, with significant savings. This "Next Gen" of HRIS not only expedites the information gathering process, but more importantly, it frees up your HR department to focus on more strategic activities that affect your entire workforce. HR can use this up-to-date, centralized information to retain and develop your high-performing employees by linking compensation to performance, identifying, educating and expanding your talent pipeline, and developing specific HR strategies to communicate and support the organization's corporate goals and objectives. With its wide variety of uses for multiple audiences, the new HR Information System has been elevated to a valuable tool that can be used every day by your employees, managers and executives alike. It provides the strategic ability to hire the right people, identify and retain the highest-performing employees and manage them more effectively with performance-based compensation and incentives that will significantly increase business success.


      Before you make changes to your workforce, it helps to be able to see where you are today. Sage HRMS OrgPlus helps you visually diagram your current organizational structure and share it easily across your company. Publish charts directly to the Internet or intranet so employees and managers can better understand everyones role in achieving organizational objectives.

      Sage HRMS OrgPlus helps you produce what-if scenario analysis and strategize for different business scenarios with the ability to drag and drop employees, functions, or whole departments into new places in the hierarchy. See how workforce restructuring decisions will impact your business using built-in formulas to measure the impact of headcount and salary changes. You can even produce detailed change reports to help realize new organizational plans. By linking directly to your Sage HRMS database, this intuitive charting tool improves companywide communication, planning, and business decision support.


      One of the most important of all HRIS benefits relates to the ability of the software program to improve productivity of human resources employees. These systems are highly detailed, and they are designed to enhance and speed up the efforts of HR employees in a number of ways. For example, they can assist with the recruitment process by simplifying the efforts associated with collecting resumes, reviewing candidate information and more.

      HRIS systems can also be used to improve productivity related to financial management through payroll processing tasks and benefits administration. These and other related tasks may require numerous hours of manpower each week, but the time and effort required to complete them can be drastically reduced when some of the tasks are

      automated through an HRIS system. Tasks that may have required the support of numerous employees and that may have required many hours of labor may become tasks that can be completed quickly and easily with the software program.


      Many HR tasks are highly regulated, and because of this, even a minor error on the part of a human resources employee could result in considerable legal issues and even financial loss for the company. For example, when resumes are not reviewed in a fair and just manner during the hiring process, a lawsuit may ensue. Another example involves a seemingly small accounting error with payroll processingbut a small payroll error could yield considerable financial expense for the company.

      When considering HRIS benefits for your organization, the ability to reduce these and other related errors associated with human oversight or other factors can be considerable. Furthermore, additional HRIS benefits relate to compliance issues. Some software programs are designed to review compliance with specific rules and regulationsthis makes it easier to ensure that your company is in compliance with these laws and regulations.


      Additional HRIS benefits relate to performing analyses and reviewing metrics associated with various aspects of the organization. For example, the human resources department is responsible for analyzing hiring costs and for calculating the turnover rate in different departments. This information can be difficult to properly and accurately determine, but the accuracy of these calculations is imperative. The results of these calculations may be used to make important business decisions and to develop strategies to move the organization forward along a successful path.

      HRIS benefits associated with analytical tools give HR employees the ability to perform these calculations with speed by collecting the data needed within a short period of time and by analyzing all of the data in a concise and effective manner. Some software programs are designed to create professional reports on metrics and analysis as an additional benefit to the human resources professionals.

      There are many HRIS benefits that companies can begin using effectively once the human resources information system has been implemented in the organization. There are several different types of HRIS systems that can be purchased and implemented, and each may offer different features and functions. Companies should review the different options available carefully in order to find the right program for their needs and budget.


The advantages of having a sophisticated HRIS or HRMS are many. An HRIS or HRMS monitored by qualified specialists who know technology and HR functional and tactical processes can manage compliance with federal and state laws, streamline processes for recruitment and selection, and produce analyses, data and reports for internal and external use. Other advantages of an HRIS include the ease of use for qualification computer technology specialists, accuracy of information and the ability to perform HR audits using any combination of parameters. The employee and manager self-service features are excellent ways to free up the time of your human resources staff members for project work and other duties. Employees and managers can locate answers and information quickly without the need to consult an HR representative every time.


In conclusion, there are many types of human resources information systems and these systems have contribute success to many organizations in the world. Information systems can help the organization to save time, cost, and energy in their operations and managements. These systems have provided a large database inventory for the organizations to store and maintain all the information and to take decisions.


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