The process of digital transformation is revolutionizing the way companies are managed, and HRM is one area that is experiencing considerable change. According to the experts at Vertisource HR, based out of Utah, a critical catalyst for this transformation in HRM is the Human Resource Information System (HRIS), a software solution that combines human resource management (HRM) and information technology to help manage employee data and organizational processes.
What is HRIS?
An HRIS is an extensive system that has been developed to manage the people, policies, and procedures of a company in an efficient way. It is a digital solution, which means it’s hosted on computers, and facilitates processes such as recruitment, training, payroll, benefits, and performance analysis.
In essence, HRIS offers a streamlined, automated solution to traditional HR tasks, freeing up HR professionals to focus more on strategic and people-centric issues, which can significantly enhance organizational efficiency and performance.
Impact of HRIS on Organizational Efficiency
The success of an organization is determined by its capacity to achieve its objectives with the resources available. HRIS can contribute to increased organizational efficiency in several ways:
Streamlined Administrative Tasks
HRIS automates and streamlines HR tasks such as benefits administration, time and attendance tracking, and payroll processing. Automating this process not only offers the potential of significant time savings, but it also provides a reduction in possible errors that manual processes can cause. The HR team can take the time they have saved and put it towards more strategic functions, resulting in greater organizational efficiency.
Improved Data Management
Having a centralized location for all HR-related data allows for easier collection, storage, and analysis of HR data through the HRIS system. Accurate data and effective data management are crucial for making informed business decisions, and HRIS provides the necessary tools to achieve this.
HRIS also aids in compliance with various labor laws and regulations. The system can be programmed to notify HR professionals of any potential compliance issues, reducing the risk of penalties and litigation.
Impact of HRIS on Organizational Performance
The impact of HRIS is not limited to efficiency alone; it also has significant implications for overall organizational performance.
Better Decision Making
As mentioned earlier, HRIS improves data management, providing HR professionals with accurate and real-time data. Having access to these reports can provide HR and management with more accurate decision-making capabilities, enabling them to gain insight into employee performance, turnover, training and more.
Improved Employee Engagement
HRIS also has features that can improve employee engagement, such as self-service portals where employees can access their personal information, apply for leave, view their benefits, etc. Not only does this practice enable employees to feel empowered, but it also encourages transparency and trust, which can result in increased employee satisfaction and improved performance.
Perhaps the most significant impact of HRIS on organizational performance is the shift it facilitates from administrative to strategic HRM. With routine tasks automated, HR professionals can focus on strategic initiatives like talent management, succession planning, and organizational development. Focusing strategically on the long-term can have a significant and positive effect on organizational performance.
HRIS has emerged as a vital tool for improving organizational efficiency and performance. Automating routine tasks, improving data management, enhancing compliance, and facilitating strategic HRM allows HRIS to significantly contribute to the success of an organization.
Nevertheless, to successfully implement an HRIS, careful planning, training and change management are necessary. As with any digital transformation, the human element is crucial. At the center of HRIS is the fundamental goal of serving the people.