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How an HR Information System Boosts Business Productivity

Tamar Weiss
Setting up a Human Resources Information System, or HRIS, can be instrumental in paving the way for increased efficiency in any small business.

HRIS is a type of HR software that consists of a database system or many interrelated databases used for tracking different types of employee information. This tracking system enables the automation of many of the daily manual tasks of HR professionals. Streamlining HR activities and processes such as training, payroll, compliance and recruitment can be an immense boost to productivity. For businesses in fast growth stages, automating these processes can be a lifesaver.

In the event your business is on the fence in deciding whether or not to adopt an HRIS, here are just a few of the long-term benefits for your business:

Improved Employee Management

Tracking employee sick and vacation days, insurance, and paid time off (PTO) with spreadsheets and time charts can be a headache, especially in a business with many employees. HRIS software solutions typically have features that include automated time and attendance tracking that result in increased efficiency for human resources personnel.

Many HRIS software solutions also include options that link time and attendance tracking to automated payroll options. Employees will be assured of receiving their paychecks at the end of the month, and HR won't have to spend hours calculating deductions for sick or vacation days.

More Efficient Onboarding and Recruitment

Gathering and comparing resumes, scheduling interviews, and deciding between candidates is a huge cost in time and resources for any business, and HR personnel in particular. Streamlining this process automatically can save entire days of an HR manager's work week. These systems can also minimize paperwork in other departments as well, by being set up to contact department managers only when absolutely necessary – such as scheduling interviews with only a list of highly relevant applicants.

HRIS software can also analyze any skills gaps within the company, and ensure existing skills are being utilized efficiently. Many HRIS software systems include components for more efficient onboarding of new employees as well, such as training and reporting. Some even have automated alerts to HR and department managers that an employee is eligible for promotion after completion of online training through the system.

Reduction and Avoidance of Errors

Being able to automate many tasks, such as tracking employee work hours and completing a bulk of the recruitment process online greatly reduces errors. Another area where error is particularly dangerous in HR is in the area of compliance.  

Compliance with government regulations, such as the Fair Labor Standards Act (FLSA), sexual harassment and anti-discrimination issues is one of the top issues human resources personnel face. Don’t forget employee benefits and retirement programs as well. Subject to government regulation, compliance issues can change at a moment's notice, making the job of HR even more challenging. HRIS software solutions include features that automatically approve and administer benefits and retirement packages according to the latest standards, overcoming the hurdle of HR compliance.

Greater Business Productivity

Once many tasks are automated, such as administering benefits, payroll, and hiring,  HR employees can concentrate their efforts on greater goals. Improved collaboration through the organization, and analysis of current workforce productivity with the integration of organizational data, are just a few of these greater goals. More advanced HRIS software solutions enable HR teams and managers to make more informed decisions about hiring and staffing in real-time with analytics and insights from the software.

When HR managers are able to automate tasks of managers, they can allocate their time and resources more effectively as well. For example, managers don't like being bogged down by paperwork, and are happy to have it eliminated and be able to concentrate their efforts on managing their department. Being able to focus employee's skills on what is most necessary, and according to each person's individual strength, creates a happier and more productive work environment.

Increased Employee Engagement

Many businesses lack systems in place to have employee's suggestions heard or the ability to offer feedback to managers and department heads. HRIS software can put these systems in place, for example, by sending weekly surveys throughout departments to hear feedback from employees and evaluate managers. These types of systems are essential for tackling small issues within your workforce before they manifest themselves in workplace challenges that become much harder to overcome.

Automating employee rewards, such as those based on productivity or sales quotas, can also increase employee engagement within a business. Many businesses would like to implement more reward programs, but lack the HR resources or ability to manage the programs. The right programs can boost employee morale and create a healthy competitive environment. When employee morale rises, productivity rises as a result.

The Bottom Line

If your human resources team has suggested implementing HRIS, it's a good sign. They recognize the benefits of the software and have first-hand experience of how it contributes to a company's morale, productivity, image, and revenue. HRIS frees up a lot of time spent on manual tasks, which can be easily automated, making it a worthwhile investment for your business and HR team. After a short while, you'll wonder how your business ever lived without it.

Want to learn about the best HR services available? Check out our comparisons here.

Tamar Weiss
Tamar Weiss is an expert in the field of digital technology, with a focus on its evolution across various industries. With over a decade of experience in content creation and marketing, she shares her insights writing for as well as several other publications.