If you’re reading this article, you may have contemplated software that makes organizational data accessible and simplifies complex HR and payroll processes all while keeping your people at the forefront. That, essentially is what HRIS software does. Payroll and HR already work in tandem in your organization, so it’s only sensible to synchronize the two into one overarching, efficient solution. But before we dive into that, what exactly is HCM?
What does HRIS mean?
HCM stands for human capital management, a technology tool that combines administrative tasks of HR combining with payroll systems, recruiting, performance, learning management and much more. It’s main focus is to help a company increase productivity by providing competitive insights.
With only a few letters between them, it’s easy to confuse HRMS and HRM with HRIS, but there are a few differences it’s important to be aware of.
What’s the difference between HRIS and HRMS, HRM, and HCM?
While a human resources management system (HRMS) shares key characteristics with HRIS, the former is a broader software tool and offers more time, labor, and talent management services. Human capital management (HCM) in comparison refers specifically to the management of your employees, from onboarding to employee performance, that HRIS and HRMS provide the necessary tools for.
What do you use HRIS software for?
An HCM solution comprises many features, configurable to your organization’s size, the complexity of your HR and payroll systems, and particular needs. Here are a few essential functionalities an HCM system provides:
- Recruitment: Manage the recruitment process, from interviews to managing job descriptions, using an applicant tracking system (ATS)
- Workflows: Build workflows into your HRIS to reduce redundancy and heighten productivity
- Self-service: Give employees the capacity to manage, edit, and update their own information
- Training: Provide continuous training to your employees and encourage the development of new skills
- Benefits administration: Manage employee benefits
- Compensation management: Manage employee compensation, from salary to overtime pay
- Performance appraisals: Real-time employee performance assessment
- Absence and leave management: Effectively manage employee absences, whether planned or unplanned
The benefits of HRIS software
The benefits of an HCM software are experienced organizationally, from your payroll systems and HR departments to your singular employee.
For Payroll Systems
Ensure compliance: Stay up-to-date with changing Canadian payroll regulations through automated processes. With all your information stored in one centralized database, skip the hassle every payroll pro is well acquainted with and easily access important documents.
Save time: Payroll is time-consuming. An HRIS reduces the time spent on payroll-related tasks significantly – for example, with employee data secured in one system, managing employee compensation is simple and easy, and you don’t have to repeat the same task twice.
For HR Functionality
Insight: By collecting and analyzing organizational data, HR professionals can make data-driven and data-backed decisions to improve their workforce planning and HR strategy.
Increased productivity: When your redundant tasks automated, your HR department, like your payroll department, can save time and focus on strategic HR initiatives instead.
Onboarding made easy: Employees settling into a new role can feel at ease through a smooth, streamlined onboarding process that allows them to manage their own information through a self-service portal.
Accessibility: Whether it’s their self-service portal or accessing their training modules, the efficiency of doing it themselves in a timely manner is a win for employees and payroll and HR departments alike.
There you have it, now you know what an HRIS is, what it does, and how it can benefit your people. An effective HRIS will help to improve your whole organization – from streamlining redundant tasks and processes, to creating an efficient flow of information. You gain control and your employees reap the benefits of a well-oiled machine.