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Understanding HRIS and its Important Role in the Company

The Human Resources Information System (HRIS) has grown in popularity since 2021. As technology advances, more companies are undergoing digital transformation. If your company has not yet done so, it may miss out on numerous opportunities to increase earnings.

Human Resources Department (HRD), as many people know, is a department that has an important role in maintaining a company's employee productivity. By providing the right system, technology, or tools, the HRD team can work optimally in carrying out these tasks to help maintain the company's overall productivity. That's why this HRIS is needed.

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What is HRIS?

Human Resources Information System (HRIS) is a system used to collect and store employee data in a company. So, in general, the HRIS function is to manage employee data, such as names, IDs, addresses, social security, and others.

In addition, HRIS also provides various functionalities to improve the efficiency of human resources administration processes. Examples include recording attendance lists, assisting with recruitment, performance management, managing salaries, applying for leave, and much more. For this reason, HRIS is often referred to as an intelligent employee information database. 

To use this system, HRIS is available in the form of on-premise or cloud-based. When companies use on-premise HRIS, employee data will be stored in databases and servers managed by the company itself. However, if the company chooses to use the cloud-based HRIS, the data is stored in the data center of the HRIS application provider server.

However, most companies today prefer cloud-based HRIS because it is much more practical. Users can access the data in the HRIS application from anywhere and at any time as long as the device is connected to the internet. In addition, cloud-based HRIS is more efficient because companies do not need to spend a lot of money to install additional hardware and software within their company.

Functions of the HRIS in the Company

Currently, the HRIS can be in the form of a web-based or mobile application. Each HRIS application development vendor provides different features. To better understand what HRIS is, here are the functions of HRIS in general:

1. Assist in the recruitment process

The Applicant Tracking System (ATS) is one of the features available in the HRIS to simplify the recruitment process in the company. This feature allows companies to collect information, organize candidates based on their experience and expertise, and screen qualified candidates.

When job vacancies are posted, companies often get resumes from applicants that do not meet the required qualifications. That's why this ATS feature is used. The ATS can screen applications and delete a list of candidates who clearly do not meet the requirements. Thus, the HRD team will obtain relevant candidate data to be processed immediately to the interview stage or the next stage. 

2. Assist in the payroll process

Payroll is a feature provided in the HRIS to automate the employee payroll process. This feature will usually be integrated with other HRIS features such as leave and attendance tracking systems, employee self-service, etc., to track working hours, calculate salaries, calculate taxes and deductions, print payslips, etc. 

By using the HRIS system, the HRD team can save a lot of time in managing the payroll process or providing benefits to employees.

3. Employee time and attendance management

The next HRIS function is to manage employee time and attendance lists. The HRD team often feels overwhelmed when they have to take care of administrative tasks such as recording attendance lists, calculating total working hours, and managing employee leave. Fortunately, the HRIS application provides functionality that can manage these tasks easily.

The HRIS application generally provides an online attendance function that employees can use to perform digital attendance. This system will record the hours of absence and calculate the total daily working hours of employees. The data will then be sent to a central database to be checked by the HRD team. This data allows the HRD team to track who arrives early or late.

The HRIS application can also be used by employees to apply for leave digitally. In addition, the employee leave quota will also be updated automatically through the HRIS application. So, the HRD team will no longer manage leave using paper documents. 

4. Employee performance management

You need to know that HRIS is built with various features that allow a company to monitor its employees' performance. This system allows companies to track employee discipline levels, see employees' ability to manage working hours to complete tasks, and find out their work patterns and activities during working hours. These data will ultimately be useful in evaluating employee performance.

In addition, several HRIS applications also provide task management features that can facilitate the HRD team or team leader in the task delegation process. In this way, companies can manage tasks more effectively and efficiently.

5. Provide employee self-service (ESS)

Most HRIS provide the Employee Self Service feature, which is a feature that allows employees to handle the most basic HR tasks, such as accessing/modifying employee documents. So, through this ESS feature, employees can view their total daily working hours, view the remaining leave quota, find out shift schedules, request corrections related to attendance data, and so on. 

With the presence of independent services such as ESS, the HRD team can be further assisted in carrying out other, more crucial tasks in the company. On the other hand, employees will also feel that the company provides better transparency because the HRIS application allows them to view data related to their performance in the company.

Conclusion

In this digital era, many companies are starting to adapt the use of technology to manage their employees. One such technology is the Human Resources Information System. Its many features will greatly assist the company or HRD team in achieving a more effective and efficient employee management process. 

Harby Jay | Author

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