Human Resources Information Systems: A Game Changer For Talent Management

Human Resources Information Systems is referred to as “HRIS.” It alludes to a group of applications businesses employ to control their internal HR operations. HRIS software assists HR professionals in managing the modern workforce, including payroll, recruitment, benefits, training, talent management, employee engagement, and attendance.

Human Resources Management System, often known as HRIS, provide access to the most important assets of a business to those who require them. Today’s cloud-based human capital management solutions have replaced the HR software development and HRIS systems of yesterday due to the varied benefits of HR software.

History Of HRIS

Payroll was the first HRIS function to be digitized in the 1970s as businesses sought to automate the administration of their workforce. However, mainframe technology was required to calculate a worker’s salary, withhold deductions, print a paper check, and keep track of payroll responsibilities. The payroll process did not become entirely electronic until early 2000 when direct deposit and employee self-service were widely used. In the late 1980s, PeopleSoft was one of the first to develop a more comprehensive HRIS system.

In addition to payroll, it provided features for managing employee records, hiring, tracking time and attendance, administering benefits, paying salaries, compiling compliance reports, and other aspects of the employee lifecycle to assist HR professionals in automating more of the hiring process and improving workforce decisions. Even more, HR tasks benefited from automation as the internet expanded in the late 1990s.

For instance, computerized job boards used paper-based help-wanted ads, offering recruiters and candidates additional channels for communication. By the 2010s, cloud computing had become widely used. HR teams at businesses of all sizes could now purchase applications without spending money on pricey computer hardware or hiring IT personnel to run and maintain the system. 

In the time to come, the benefits of the human resource management system are going to spike up because of its ease of use and accessibility. As a result, there will be even more HRIS innovation. Many current systems include machine learning and predictive analytics, and the development of real artificial intelligence will enable businesses to predict future skill requirements, identify workforce trends, and swiftly match best-fit individuals to open positions.

Related Read: How To Leverage The Benefits Of HR Software?

Why HRIS Is Important?

Given the change to a work-from-home paradigm, HR expenses, particularly office space, are in flux; nonetheless, businesses must still precisely estimate labor costs to maintain revenue per employee indicators. Studies show that base pay with the benefits offered, employment taxes, and base compensation often make up for 1.25 to 1.4 times the yearly salary.

Therefore, companies with overworked human resources departments should introduce self-service options. There is no need for an HR specialist to spend time aiding a manager with standard changes to hours worked or guiding staff toward documents. Fortunately, modern human resources information systems offer several advantages and functions beyond only secure self-service and reliable financial data reporting. 

Related Read: Evolving HR Technology Trends In 2023

Functions Of An HRIS

  • Engagement:

Connections with management and coworkers significantly impact an employee’s ability to generate higher-quality work, completely embrace the company’s values, and carry out the organization’s vision. In addition, the HRIS is frequently the way to finishing a training program, learning a new skill, developing a career path, getting recognized, or becoming a mentor.

  • Management: 

Employee management provides a central portal to enable analysis, reporting, and compliance processes, which is one of the reasons this function is frequently referred to as “core HR.” It is where you organize your personnel into organizational units, such as departments or locations, set up the manager-employee reporting structures, and synchronize payroll with accounting cost centers.

In addition, this function is the cornerstone of initiatives to give employees self-service, maximize reporting, and enhance HR service delivery because it is where personal information is recorded and maintained.

  • Optimization: 

A pivotal selling feature is using data from the HRIS to produce a picture of the future pool of employees. The usual HRIS’s least-used feature is likewise this one. The true significance of this role typically becomes apparent after mergers, acquisitions, dramatic economic swings, or when CEOs leave.

Businesses that optimize their workforce proactively are more adaptable to change, have advanced retention rates for top talent, and have greater levels of employee engagement.

  • Payroll: 

Calculating earnings from gross to the net or otherwise, withholding specific deductions, and transferring payments can be made as routinely as paying rent. This is another fundamental function of the HRIS. Benefit selections and both employee and employer charges are included in payroll functions.

Full-service payroll solutions also automate tax filing and depositing. Employees can access copies of income statements and make changes to tax withholding, direct deposit accounts, and elective deductions using self-service functions without involving HR. 

  • Workforce Management: 

HR teams keep tabs on worker advancement, management assessments, and disciplinary actions here. They also keep track of time and attendance and ensure the workplace is safe and healthy. The functions of performance management, learning, and incident recording are also located here.

Timesheet structures, overtime regulations, vacation policies, and approval processes can all be developed by HR in a way that maximizes automation, control, and effectiveness. This function also sets up the employee performance review procedure with goal management. 

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HRIS Security

In order to maintain a positive culture, defend privacy rights, and comply with legal requirements, personal employee information needs to be highly protected. No other piece of information, except personnel action details becoming public, may cause as much strife as an employee discovering what colleagues make in comparable employment.

Therefore, in order to prevent access to critical employee information, security features must be at the top of your list of needs for human resources information systems. While particular sectors, such as the financial or healthcare industries and multinational corporations, may have unique security needs, all HRIS customers should insist on the following: 

  • Role-based Access: For good reason, HR personnel need different privileges than the rest of the workforce. Some jobs that relate to their data should be performed by managers, some by specific employees, and others by others. The HRIS should support all of the jobs required to administer constituencies. 
  • System Segmentation: The HRIS must be set up, so that specific information is only accessible to specific users or roles. Some businesses have implemented security controls even within the HR department to provide HR professionals access to only the workforce segments they support. Executive payrolls are frequently divided into different accounting organizations to preserve that information. 
  • Two-factor Authentication: Mobile phone adoption is widely used, making it much simpler to implement two-factor authentication technology for an additional layer of security. 
  • Encryption Of Data: All personnel data must be encrypted both when it is in the HRIS at rest and when it is sent to the end user. 
  • Password Strength And Reset Policies: To prevent unauthorized access to HRIS data, IT should be able to set requirements for password length, complexity, and frequency of resets, up to once every 30 days.


The benefits of HR software are multifold and can help achieve economies of scale for all businesses and organizations irrespective of their size, functionality, working, and hierarchy. The future for HRIS is bright and shining! 

Content Team

This blog is from Mindbowser‘s content team – a group of individuals coming together to create pieces that you may like. If you have feedback, please drop us a message on

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