A Buyer’s Guide to HRIS: How to Find an HRIS Built for the Future

HRIS software (which stands for human resources information system software) is a digital platform designed to manage and streamline various human resources processes within an organization. It acts as a centralized system for storing and organizing employee data and automating tasks such as payroll processing, employee benefits management, and performance management.

An HRIS supports HR teams in making informed decisions by providing real-time insights into workforce metrics and trends. It often includes tools for employee self-service, enabling employees to access and update their personal information, view benefits, and track performance.

Designed to save time, improve efficiency, reduce administrative workloads, and ensure data security, HRIS software is an essential tool for workforce management and human capital management across businesses of all sizes.

An example of an HRIS feature is employee self-service, allowing employees to access and update their own information, such as contact details, benefits enrollment, and time-off requests, reducing the administrative workload for HR teams.

There are several types of HRIS systems tailored to different organizational needs:

1. Operational HRIS: Focused on daily tasks like attendance tracking and payroll processing
2. Tactical HRIS: Supports recruitment, talent management, and training programs
3. Strategic HRIS: Provides tools for long-term planning, such as succession planning and workforce analytics
4. Comprehensive HRIS: Combines all functionalities, offering a complete solution for human capital management and workforce management

An HRIS is a technology solution that centralizes and manages employee data, often automating functions like payroll, benefits, and timekeeping.

An HR system is a broader term that encompasses all HR functions, including both manual processes and technology tools, which may or may not include an HRIS.

A company should consider getting an HRIS when administrative HR tasks become burdensome or compliance management becomes complex, especially as the workforce grows or expands globally.

HRIS adoption is often recommended for companies with 50+ employees.

To select a future-proof HRIS:

1. Ensure scalability to support growth in medium-sized businesses or enterprises
2. Prioritize real-time data analytics for informed decisions on employee performance and workforce trends
3. Consider global compliance when hiring and managing different types of worker contracts, such as direct employees and contractors
4. Opt for systems with strong employee self-service features and integrations for payroll processing, talent management, and employee benefits
5. Look for robust data security to protect sensitive information
6. Assess vendor support and regular updates to ensure the system adapts to changing business needs and technological advancements

Check our complementary guide for additional insights and actionable advice: Choosing HRIS Software: Free Guide by HR Professionals

While many companies have adopted HRIS solutions, their use isn't universal. The decision to use an HRIS depends on various factors, such as the company's size, budget, specific needs, and industry requirements.

Small businesses might not find it necessary to invest in comprehensive HR solutions, often opting for manual processes. For teams of 20-50 employees, running payroll or updating employee information in a spreadsheet may not be too demanding. On the other hand, larger enterprises often leverage HRIS to efficiently manage dozens of HR functions, including payroll, benefits administration, time and attendance tracking, and more.

For remote teams and those with global operations, HRIS becomes increasingly beneficial, especially if the system is designed to address the complexities of international payroll and compliance.

Deel, the leading global payroll and HR platform, is an example of a specialized solution catering to the needs of global organizations and workforces.

Modern HRIS software is designed to be user-friendly for various users, including HR teams, managers, and employees.

Features like employee self-service simplify access to benefits and performance data. At the same time, intuitive dashboards allow HR professionals to efficiently manage payroll processing, compliance, and employee performance tracking.

However, ease of use can vary, so it's important to select software that fits the needs of medium-sized businesses or larger enterprises.