Every industry has its jargon. Such is the case with outsourced HR and payroll. We use terms that people outside the industry would not be expected to know or understand. For example, not everyone is clear on what an HRIS is. Some say it is just a system for keeping records. We say it’s a whole lot more.
‘HRIS’ is an acronym that stands for ‘human resource information system’. It is a system for compiling, storing, analyzing, and reporting any and all information related to HR function. These days, it is all computerized. Forty years ago, information was managed with paper documents.
It Starts With Recordkeeping
There is no arguing the fact that an HRIS starts with record keeping. In fact, the most basic entry-level HRIS systems do little more than provide a digital environment for HR records. But such solutions are the exception to the rule. Most HRIS platforms do so much more than make record keeping easier.
Before we go on to those other things, let us briefly talk about the types of information you would find stored in an HRIS. We are talking about all information pertaining to a company’s workforce. You have names, address, contact information, and the information necessary to run payroll. That is the bare minimum.
If an HRIS system offered more, you would be looking at additional information as well. We won’t speculate as to what that might be. We do not want to give you any false impressions of HRIS platforms we know nothing about. We can tell you everything our software includes when you contact us.
Payroll and Benefits Administration inside an HRIS
Move beyond entry-level record keeping and you can find HRIS systems that offer payroll functions. Some even offer benefits administration from within the same environment. You get all three of HR’s primary administrative functions together in one centralized location.
It is all made possible by the cloud. An HRIS payroll system is a cloud-based system rather than a platform installed on a local network only. This offers tremendous advantages that truly scale up what would otherwise be just another recordkeeping system.
Real Time Data and Reporting
Cloud-based applications are ideal for data-heavy needs because they allow for real time data access. Let’s say the CEO wants current numbers on the total workforce and payroll spend. There is no waiting a couple of days until the HR department runs a report. The information is available in real time, directly from the platform.
Real time data informs better decision making. It also improves compliance by giving those responsible access to whatever information they need at any given time. Real time data allows benefits administrators a clearer view of the current benefits space so that they can make better decisions for the future.
Reducing Errors Along the Way
Tying everything up in a neat little package is the idea of reducing errors. In a cloud based HRIS system, data is entered once and carried across the entire platform. HR personnel don’t have to enter the same data multiple times. With the use of individual accounts, employees can enter their own information rather than relying on HR to do it. What is the end result?
Reducing how frequently data needs to be entered reduces errors. Having employees enter and verify their own information reduces those errors further. And because data is populated across the entire system, accurate data will always be accurate no matter the module you happen to be working in.There is a lot more we could discuss regarding the HRIS concept. Needless to say that we are big believers in cloud based HRIS systems, especially our HR cloud.