Information systems in HR: What matters the most

(Last Updated On: November 10, 2022)

Introduction

Information Systems in HR are systems used to gather and maintain information on the employees of a business.

These systems often include all of the fundamental capabilities required for complete Human Resources Management.

It is also system for learning and development, performance management, and other things.

Human Resource has seen considerable changes in recent years. With the strong backing of information technologies development in this sector of knowledge, the emphasis has shifted away from administrative management chores and toward becoming a strategic partner of the whole organisation plan.

The widespread usage of information systems has had a significant impact on how HR is currently administered.

Information systems accelerated a significant change in organisational human resources processes and procedures.

Information Systems in HR are also known as HRIS. In essence, the HRIS is a collection of HR software.

The HR Information Systems can run either on the business’s own technological infrastructure or, increasingly frequently currently, on the cloud.

This suggests that the HR system is being utilised off-site, which makes upgrading it much easier.

This article will provide an overview of HR information systems, their key functions, and all the information necessary to have a fundamental understanding of the HRIS and its advantages.

 

The role of information systems in Human Resources

Training and Development

An HRIS may be used by firms to support programmes for training and development. Information Systems in HR can be used to streamline the annual performance review process or to compile a talent inventory of each employee’s qualifications for employment, depending on the needs of your business.

A benefit of creating new training programmes or restructuring departments or positions is having this information available to managers and human resources representatives.

 

Workforce Planning

Information Systems in HR can keep track of vital personnel data like identifying codes from the Equal Employment Opportunity Commission, job titles, and demographic data.

You can examine this data more quickly when working on recruitment tactics, career planning, and affirmative action initiatives if you store it in an electronic database.

The number of employees employed in the previous year, the average duration of employees, and a breakdown of the employee population according to certain EEOC criteria like gender and colour may all be swiftly determined by HR representatives by running reports.

 

Risk Management

HRIS also reduce risks and potential liabilities. This is done by maintaining computerised records of things like warnings for disciplinary action against employees, the safety training that employees have received, accident logs, and workers’ compensation claims.

In order to assure compliance with all federal and state labour laws, the HR department analyses this data to find methods to enhance workplace conditions, safety training programmes, and disciplinary procedures.

 

Cost of Information Systems in HR

Price is a significant consideration for many businesses when installing a new tool or software solution. After all, it’s a good idea to confirm that the advantages of utilising a novel solution—in this case, an HRIS—outweigh the associated expenditures.

The cost of a human resource information system often relies on the size and kind of your business.

For large companies, monthly rates, for instance, might range from a few dollars to several thousand per year.

Some of the costs of an Information System are as follows:

λ Software Cost: Since this cost is often charged per month and per employee, the number of employees directly affects how much is charged each month.

λ Setup Cost: Some HRIS demand a setup cost upfront. While some software has free setup and deployment, some systems can have annual setup and maintenance costs of up to thousands of dollars.

λ Support Costs: Users that pay for software support can take advantage of ongoing customer service as well as upgrades and new releases from the provider.

λ Consultation Costs: Similar to setup fees, consulting expenses can also occasionally be waived. Alternatively, they might be billed hourly.

If a company wants to deploy a variety of features, consultation may be required.

 

Types of Information Systems in HR

There are several platforms that cater to various facets of HR and data use cases in addition to

the various capabilities you might seek for in an HRIS.

 

Tactical

These systems are by definition employee-facing. A tactical HRIS supports procedures like hiring, onboarding, and job analysis because it was designed as from ground up to inform and assist the allocation of corporate resources.

 

Strategic

Instead of focusing only on employee-facing tasks, a strategic HR Information Systems addresses the entire workforce. Planning process, labor negotiations (if your staff are unionised), and other particular HR requirements are some applications for this type of HRIS.

 

Comprehensive

A thorough Information Systems in HR organises and scrutinises human resource files in great detail, as the term implies.

The platform functions as a centralized database to store all private employee information in one location.

The position of an employee inside the company, positive action records, skill inventories, and other HR tools are some of the data items included in this list.

 

Top HR Information Systems Providers

 

BambooHR

The software from BambooHR is perfect for small and medium-sized organisations.

Its sophisticated and modern user interface is essential for effectively managing the workforce.

Because of its user-friendly platform, firms may transfer data from simple spreadsheets to an advanced HRIS that meets their unique demands, freeing up HR professionals’ time to work on other crucial projects.

 

SAP SuccessFactors

Complex cloud-based software for large and small businesses alike, SAP SuccessFactors. With the help of the programme, customers may monitor recruiting information, project updates, and more while on the go.

It features great functionality and a user-friendly, simple-to-navigate interface.

 

Workday

The HRIS from Workday is appropriate for businesses of all sizes and sectors. The platform itself provides user and administrative features for payroll, analytics, planning, talent, human resources, and students all in one location.

 

Pros and Cons of Information Systems in HR

Pros

λ Great Organisation

By using an Information Systems, significant data is gathered, stored, and made easily searchable in one location. Personnel in HR are no longer need to manually sift through file cabinets and papers.

Instead, a quick search usually yields the information they need in a couple of seconds.

λ Easy Compliance

Organisations frequently need to adapt to different compliance standards established by regulatory bodies.

To ensure complete compliance with the laws and standards in the region or nation where your business works, the majority of HRIS are frequently updated by their designers.

λ Less Paperwork

Filling out paperwork and documentation is reduced because to the collection and storage of data in an HR Information Systems, where it is preserved digitally rather than physically.

λ Improved Efficiency

HR professionals that utilize an HRIS solution may focus on ways of improving the business rather than spending a lot of time on repetitive chores because procedures that used to take a long time can now be completed in a couple of seconds. For instance, they can now devote their working hours to figuring out how to enhance the corporate culture, increase productivity, or raise staff retention.

 

Cons

λ Security

In general, an HR Information System data storage is safe and secure. A data breach could still happen, leaking private company and employee data to unauthorised parties.

λ System Costs

Such software solutions can be expensive and difficult to set up and manage. For a small or medium-sized business, the costs of installation, educating HR staff on how to use it, and additional consultation on numerous issues can be a considerable financial burden.

Despite the potential lengthy advantages, maintaining an HRIS as a short-term venture might be difficult.

λ Over Reliance on Statistics

All employee-related data is normally tracked by HRIS, which can also produce insightful short-, medium-, and long-term statistics. However, due to the fact that some parts of an employee’s work may only be viewed through direct interaction, these metrics aren’t always the ideal approach to judge an employee.

Prior to the necessity for an HRIS, your organisation will probably see some growth.

Depending on the specifics of your business, you’ll need to encounter a certain amount of growth for an HR Information Systems to be worthwhile. However, a good sign is when the HR department finds it difficult to carry out their duties manually. You should think about using an Information System as soon as you identify an HR bottleneck.

 

Benjamin Nyakambangwe is a consultant at Industrial Psychology Consultants (Pvt) Ltd

Phone: +263 785 860 523

Email: bnyakambangwe@ipcconsultants.com

Website: www.ipcconsultants.com

 

 

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