What exactly is a Human Resource Information System (HRIS)?

A women taking down the details of other employees.

An HRIS or Human Resource Information System is one of the most used software systems in modern HR. Let us help you unravel the core meaning of HRIS along with its main functionalities and benefits to any organization.

What is HRIS?

HRIS refers to Human Resources Information System. The HRIS is a dedicated system that is used for collecting and storing data on the employees of an organization.

In most cases, an HRIS features the core functionalities that are required for ensuring end-to-end HRM or Human Resources Management. It is a dedicated system for performance management, recruitment, learning & development, and so more.

The HRIS is capable of running on the technical infrastructure of the organization or could be cloud-based. The cloud-based infrastructure ensures that the application runs outside the premises of the company. therefore, it becomes easier to update the software and its functionalities. An HRIS also goes by the name as Human Resources Management System. It is typically the conjunction between information technology and human resources with the help of a reliable HR software solution. This enables HR professionals to processes a wide range of HR-related tasks seamlessly.

An HRIS can be viewed as a way in which businesses of all sizes and scales can take care of a specific number of activities -including those involved in sectors like payroll, finance, accounting, and so more. An HRIS allows an organization to plan the overall HR costs effectively. It also enables them to control as well as manage the costs without the requirement of allocating multiple resources towards them.

Top Benefits of HRIS

The utilization of HRIS systems can deliver a wide range of benefits to organizations of all sizes and scales. This is why modern businesses of varying objectives try incorporating this tool for supporting the respective people and their operations. Basically, the HRIS system is capable of storing employee information. Some of the additional benefits of this software solution for modern businesses include:

  • Compliance: The collection and storage of specific data take place due to compliance reasons. It would include materials for identifying employees in cases of frauds, thefts, or other misbehavior. It can also include details like first contact information in relation to accidents, identification information of citizens for taxation purposes, and expiration dates of important certifications. All such vital information can be stored effectively in HRIS. It is crucial that data is stored securely and safely to align properly with the respective GDPR regulations.
  • Record-keeping: An HRIS can be regarded as a dedicated record-keeping system that helps in keeping track of relevant changes related to the employees of the organization. The HRIS can be observed as the single source or point of information as far as collecting or identifying personnel data is concerned.
  • Efficiency: When all vital information is stored at a single location, it not only benefits the overall accuracy, but it also helps in saving ample time. Some organizations continue keeping all data about employees in the form of physical paperwork. Looking for the right information folder and locating the correct sheet can be indeed quite time-consuming and labor-intensive. This is wherein the automated system of HRIS solutions comes in.
  • Relevant HR Strategy; The HRIS allows the tracking of important data needed to take business strategy and HR forward. Depending on the organization’s priorities, different sets of data will be crucial to control and manage. This is wherein the role of HRIS shines throughout.
  • Self-service Human Resources: Another major benefit of using a dedicated HRIS system is to deliver self-service Human Resource capability to managers and employees. This allows employees of an organization to manage the respective affairs. When done properly, the HRIS ids capable of offering a seamless employee experience throughout.

Functions of HRIS

There are various types of HRIS systems as well as software solutions. As HRIS is known to encompass all the core functionalities of the Human Resources department, all individual functionalities are a single part of the entire system. Some of the important functionalities are:

  • ATS or Applicant Tracking System: The software is responsible for handling all recruiting needs of an organization. It is capable of tracking resumes and candidate-specific information while allowing recruiters to match relevant job openings to the right candidates from the application pool of the company. It also helps in guiding the hiring process. If you are in search of a reliable ATS for your HRIS, you can use FutureSolve’s AI-powered ATS to streamline the recruitment process on the go.
  • Payroll: It helps in automating the payment process of employees. Contract-based information and data on new hires is entered into the system. In some cases, this information is combined with attendance and time data as well. At the end of every month, payments for employees are generated automatically.
  • Benefit Administration: Another important functionality of the HRIS system is Benefits management and administration. Employee benefits are regarded as crucial aspects of compensation. This aspect is managed by the HRIS system. A number of advance systems deliver employee-centric self-service model for ensuring employee benefits. In the given case, employees can choose the benefits they want for themselves.
  • Time & Attendance: The module is responsible for gathering time & attendance data out of employees. These are particularly relevant for shift workers wherein employees are expected to clock in & out. Conventionally, employees had to write down the respective working hours manually. With the advent of HRIS technology, employees mostly check into the office space by using a dedicated card or fingerprint that remains synced to the system. This offers the value of exact time for ensuring arrival and departure. Any issues related to late arrivals or departures are analyzed automatically.


It is important to select the right HRIS system for your organization. An organization that takes time and effort to select the right system can ensure its overall success in the long run. It is also important to customize the HRIS system to the unique needs and objectives of your business.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.