Corporate Newsroom

What is an HRIS and Why Do You Need One?

4 minutes read - July 22, 2022 - by Yondu Team
HR teams handle all matters concerning employees. Here’s how an HRIS for medium and large businesses can help your HR personnel stay focused and engage employees.
What is an HRIS and Why Do You Need One Yondu Blog featured image

As your company expands and grows its workforce, an HRIS for medium and large businesses is one of the most useful tools you can have. This is especially true for HR departments that rely on manual tools or systems in performing their functions only to face numerous challenges regarding workforce management.

Inefficient workflows that may leave your employees feeling disgruntled are not the only issue of concern. Without an HRIS, accurately monitoring staff performance may become difficult and downright impossible, as well. Ultimately, these areas can cause problems in retaining talent and improving the employee experience.

Since employees are an important part of any organization’s success, you must work with HR to keep your staff happy. This is where an HRIS can be of tremendous help.

What is an HRIS?

A human resources information system (HRIS) is a software package for collecting and storing essential data about a company’s employees. Common employee data may include birth dates, gender, educational background, contact information, and other job information like pay rates.

It also shows your employees’ benefits selections, as well as their time-off balances and requests.

From the HR’s perspective, this software provides essential functionalities for a seamless end-to-end Human Resources Management (HRM), including recruitment, performance monitoring, and continuous learning and development. Since all data is stored in a single location, the HRIS serves as the primary data source to make HR processes more streamlined and efficient.

Users can also manage, maintain, and automate other information, like policies and procedures concerning human resources. Using automation technologies, the HRIS standardizes HR tasks and procedures, ensuring consistency and timeliness in record-keeping and reporting.

How Do You Know If You Need an HRIS?

Here are specific scenarios that may give you compelling reasons to incorporate HRIS into your organization.

1. High Attrition Rate

Nowadays, job seekers and professionals put a premium on employee experience. They want a work environment where they feel heard and valued instead of simply being another number of the workforce.

Easy and transparent processing of day-to-day tasks like managing leaves, attendance, and payroll disputes are also a must for retaining employees.

However, inefficient practices and poor employee engagement may discourage your staff from staying in the company. When this happens, you may find yourself with an employee branding problem.

Eventually, this issue can lead to a high employee attrition rate, where you find it difficult to quickly fill the position with the best candidates.

2. Poor Collaboration

By nature, HR work concerns interacting with employees from all departments. For example, your HR department may work with the finance team on several tasks like payroll, equipment, training support, and the like.

Without the proper collaboration tools, your HR and finance teams may encounter miscommunication issues that can cause errors in payroll administration, tax reporting, and the like. If these errors escalated to employee dissatisfaction, they might be more likely to entertain thoughts of leaving the organization.

3. Inefficiencies

While it’s good that your company is growing, business expansion may overwhelm your HR team with paperwork and other administrative duties. These duties include benefits requests, payroll processing, filing requirements, and attendance monitoring.

With a growing talent pool, your HR team may have difficulty keeping pace with these requests or activities. Besides struggling with efficiency, HR could lose valuable time and energy in implementing meaningful programs like those for skill development.

4. Duplication of Tasks

Again, HR work is multifaceted. So, it’s common for HR teams to perform repetitive tasks within and outside their scope.

For instance, manually transferring employee data to other systems is already tedious. Scale that up by hundreds or even thousands of records, and your HR department may end up being overworked and unproductive. At this point, making mistakes and rectifying them is more likely to add to HR’s burden.

Benefits of HRIS for Medium and Large Businesses

What gains can you expect from your HRIS? Here’s an initial list.

Informed Decision-making

An HRIS for medium and large businesses has multiple uses. Apart from storing basic information about your employees, you can also use it to collect their performance assessment data. Both textual information and factual data like performance criteria scores can then help you determine their promotion potential, not to mention guide your company’s hiring or training approaches.

Can young talents compensate for the experience of more seasoned counterparts? Do your team members have the necessary certifications to help you dominate your industry? HRIS platforms offer valuable insights from existing data to help you make a more informed decision regarding your workforce.

HRIS can also be a helpful tool in workforce planning. You can pull up the required positions in your organization and even link the best candidates to them. This allows you to optimize your workforce, choose the best people for the job, and identify opportunities to improve your organizational structure.

Enhanced Operational Efficiency

On top of HR’s administrative duties, they also have to think about employee concerns and determine the best solutions to address them. HRIS for medium and large businesses provides a way to streamline the relevant processes, making your HR team’s lives easier.

Your HRIS can also leverage the benefits of the cloud, allowing you to store files and documents digitally so you could eliminate large piles of paperwork. Automation is also among the best features of an HRIS, as it frees up your staff from time-consuming HR tasks like calculating taxes and payroll and monitoring attendance.

Aside from these functionalities, an HRIS can also give you better visibility of your company’s workforce status or requirements. Being the single source of accurate and real-time data, you can easily create and share reports with key personnel for decision-making.

Improved Employee Satisfaction

In the same way that an HRIS can make your HR team’s lives easier, having an HRIS for medium and large businesses also allows for a better employee experience.

The HRIS’ self-service portals give them control over their personal information, leave requests, and benefits. With this, employees won’t have to wait long for approvals or worry about admin errors affecting their pay or leaves.

New hires can also benefit from a smooth onboarding process, as an HRIS gives them access to training materials and lets them keep track of their progress.

Empower Your HR Department

From workforce planning to leave requests, your HR department has its hands full with numerous tasks concerning the employees’ welfare. Adding a growing employee pool to the picture will only make it difficult for your HR team to cope.

Here, an HRIS enables you to do more for your employees. And in the current hybrid work landscape, automating your HR operations can allow for easier collaboration, increasing your company’s overall productivity.

Yondu offers HRIS services to help with all your HR needs. Contact us today to learn more.