Does Your Organization Need A Human Resources Information System (HRIS)?

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Do you need HRIS software? While it’s a bit of a loaded question, it depends heavily on exactly where you want to take your HR department. That’s because a proper HRIS or HRISS can take your business to the next level.

Here’s how: In this article, we dive into detail on what an HRIS software is, what it actually does, why it matters for business, and what features and functions it needs to include to work well.

Download our complete guide to digitally transforming your HR department today.

What Is An HRIS Software?

An HRIS software, or Human Resources Information System software, is your HR department’s (and your business’) single source of truth when it comes to employee data, people processes, and more. Essentially, it can store data, change it or update it, trigger actions based on it, or generate reports on it, in a single tool.

An HRIS software is a tool designed to make it easier to manage your HR processes and data.

An HRIS will typically combine many (if not all) HR processes, including but not limited to:

  • Recruitment
  • Onboarding
  • HR management
  • Payment
  • Performance
  • Employee development

Generally, an HRIS combines multiple sources of data so that it’s easy to store and find information related to employees from the moment that their future job is advertised until they retire or leave the business.

In a survey of 100 UK-based decision-makers, 65% of people admitted that their HR information is still managed using paper documents, paper-based processes, and stored in filing cabinets. An HRIS is designed to solve this.

What Does An HRIS Software Do?

An HRIS software connects human resources with the data that helps power it. It does this by using information technology to connect or do everything electronically or seamlessly — often at the click of the button.

Prior to an HRIS, an HR professional might write, type, or print a document. Then, they would decide where it was stored, walk over to a filing cabinet, file the document in a logical place, and then lock it up with a key.

When they needed to access this same information, they had to remember where it was filed, go to the location, unlock it, access the document, get the information it contained, and use it. Then, they would return the file, close the filing system, and secure it again.

An HRIS software does the opposite. It is a way to house information digitally, and in one place, so that documents and other important information can be accessed with all those steps (literally and figuratively).

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Digital Employee Files on Different Devices

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What Are Some HRIS Software Benefits?

hris software top 7 benefits

How can an HRIS help your HR department, and why should you consider investing in one? Whether you have never heard of one, had one, or even if you have one that isn’t simply cutting it. Here’s what a great HRIS should be able to do…

1. Saving HR’s Time

An HR Information System is designed to make core HR activities as easy as possible by digitizing them: Whether that is calculating absence entitlements, tracking attendance, making payroll, or any of the dozens of other time-consuming processes that absorb HR employees’ attention every day.

With an HRIS that connects data seamlessly between systems, you:

    • Don’t have to re-enter information.
    • Get consistent and repeatable processes.
    • Have an easier time sharing information across the business.
    • Can capture signatures from people quickly and easily.
  • Save time so you get more time for what you love doing.

2. Streamlining Information For Easy Access

An HRIS system helps HR teams get organized. This, in turn, can improve an entire company’s responsiveness to people’s work-based needs.

Instead of searching through filing cabinets, an HRIS lets you have employee data right at your fingertips. With a central data repository, you get better data management with less effort that is stored securely in one place.

In addition, anyone who has relevant access can find the information whenever they need it, and easily. That means without having to rely on someone in HR to unlock a filing cabinet.

3. Remaining GDPR Compliant

In our data-driven world, it’s important for HR to trust that their people-related data is safe and secure.

Therefore, it’s not enough to know that only the right people can access the right level of information about employees or candidates. It’s just as important to comply with other legislation – like the requirement to be able to delete information about candidates when it’s relevant, too.

An HRIS that is built on solid data protection and compliance foundations should allow you to operate in a complex or regulated business market with the utmost confidence.

4. Improving Candidate & Employee Experiences

A 2018 report by the iCIMS says that 95% of respondents believe “that the way a potential employer treats them as a candidate is a reflection of how they would treat them as an employee.”

So, if you want to start off on the right foot, it’s worth creating a great experience with your potential employees from the moment they interact with your business.

Some HRIS solutions with expertise in applicant sourcing can help employers publish job adverts from the same platform, edit them easily, and even help them manage everything in one platform.

5. Saving Time For More Strategy

We recently conducted research with HR managers about what they would want to change about their jobs if they could. 80% of them said they would like to be more involved in strategic decision-making.

Unfortunately, it’s only possible to be truly strategic once HR operations are running smoothly. That’s why implementing a good HRIS can actually be a highly strategic move.

By automating and simplifying HR tasks people outside of the HR team are enabled to manage their own data and processes, within a stable, well-thought-out framework. When data and processes are seamlessly integrated with each other HR leaders have more time for strategic HR initiatives.

This could even include overdue things like change management processes (click here to read more about them). Basically, when you have an HRIS, strategy can become a primary function of HR.

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What Should A Good HRIS Software Include?

A strong HRIS software solution should include a certain level of basic functionality. This would mean allowing those using it to manage all employee information and all relevant company-related documents – from employee handbooks to safety guidelines. Check out this HRIS software checklist to start:

HRIS Must-HaveWhy?
Document StorageTo keep all your company documents and policies in one place.
TemplatesTo streamline offer letters, travel policies, and more.
Self-ServiceTo ensure data is up-to-date -- employees make changes and HR approves them.
ATSTo source, interview, provide feedback on, and hire the best candidates.
Performance FunctionalityTo schedule performance cycles, house feedback, and create goals.

But, this is just the beginning. Of course, it should help HR teams (and employees themselves) manage and access the relevant benefits information, ideally using a self-service approach. A good HRIS should integrate with payroll. It should also help with applicant sourcing, for example, by tracking job applicants and managing their CVs.

In sum, it should provide the backbone of an employee management system – including being able to record, track, and provide relevant employees and managers with access to training records, performance reviews, performance development plans, disciplinary-related processes, or documentation.

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When Should You Invest In An HRIS?

At what point should you invest in an HRIS software? Here are some of the most common warning signs and why it might be high time to make the switch…

Warning SignThe Consequence
You're struggling with HR paperwork.You spend more time on admin and not on your people.
You can't see the bigger picture of your people.You might miss out on an essential element of people strategy: people.
Reports take forever to collect and create.Less reliable data, slower reporting times, less confidence from management.
Onboarding processes aren't set.New employees struggle to catch up and performance dwindles.
Your performance review process is done manually.Your employees will feel frustrated, processes will lag, and engagement will suffer.
You manage absences over email.Data gets lost, projects get dropped, business suffers.
Employee data is spread out across spreadsheets.Not only not organized, but a major security risk and a lack of compliance.

In essence, if there’s anything related to HR documentation that you could plan, store, save, access, or retrieve in a digital way, you should get an HRIS software.

Personio: An HRIS Software Designed To Help

At Personio, we produce software that helps HR professionals manage their information.

For us, it’s about more than just data or information storage and accessibility. In fact, our goal is to make HR professionals real heroes by giving them more time to focus on what matters most: Their employees.

Sure, our software digitizes and simplifies time-consuming HR processes – but what it really does is give HR leaders and their teams more time to focus on strategic topics like talent development or employer branding.

Until now, we’ve freed some 2,500 customers from administrative chaos. That’s only the beginning, though. We believe there can never be too many HR heroes. Unleash your inner HR hero. We’ll help you take the lead today.

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