Unlocking the Benefits of HRIS: Data, Employee Experience, and AI

What are the benefits of HRIS in 2024? According to experts, HRIS software benefits you in these five ways, from data and employee experience to AI.
Daan van Rossum
Daan van Rossum
Founder & CEO, FlexOS
I founded FlexOS because I believe in a happier future of work. I write and host "Future Work," I'm a 2024 LinkedIn Top Voice, and was featured in the NYT, HBR, Economist, CNBC, Insider, and FastCo.
May 10, 2024
6 Minutes
min read

As Suzy Chief People Officer Anthony Onesto shared in our recent interview about workplace technology in 2024, these days, Human Resources is all about data:

"For me, the gold or the new oil is data, and most of these tech platforms know it." – Anthony Onesto, Chief People Officer, Suzy

Especially in the age of AI, your people data is more important than ever, so the question is: where does all that data sit?

Enter the HRIS.

The Human Resource Information System (HRIS) is essential in managing employee data and HR processes.

Understanding what an HRIS is and its integration into business operations can directly impact your organizational success and improve the employee experience.

What is an HRIS?

The HRIS is your core employee management software. As I share in my guide on HRIS meaning:

"The HRIS is an HR software designed to handle core HR necessities like payroll, benefits administration, and leave approvals."

But it's more than that:

"HRIS systems are key in maintaining, managing, and processing employee information alongside HR-related policies and procedures. They standardize HR tasks for more accurate record-keeping and reporting. Integrating HRIS software into daily operations eliminates outdated paper-based methods, fostering a more efficient and seamless interaction between employees and their companies."

And that's not even where the HRIS ends, as you can read from the benefits below.

Five Benefits of the HRIS

So, what are some of the HRIS benefits?

Based on what I've heard from experts in the field, the benefits of HRIS include:

Optimized HR Operations and Enhanced Efficiency

Rippling's HRIS deeply integrates with Finance and Payroll

HRIS is the central hub for all HR activities, significantly streamlining operations by automating routine tasks such as payroll, benefits administration, and compliance reporting.

This automation minimizes human error and allows HR professionals to concentrate on strategic tasks that positively affect the organization's profitability, showcasing the benefits of an HRIS system.

One of the HRIS advantages is that it integrates with other HR software like recruiting software, ATS software, employee surveys, performance review software, and desk booking software, creating more streamlined ways of working and an opportunity to centralize data.

Strategic Decision-Making Through Data Analytics

HiBob is structured for how modern companies run

A key advantage of HRIS is its capability to produce insightful analytics for strategic decision-making.

Offering detailed reports on workforce demographics, compensation, benefits, and employee turnover, HRIS empowers managers to make data-driven decisions that support the organization's strategic goals.

This approach enhances talent management and resource allocation, ensuring optimal personnel placement.

Cost Reduction and Improved Resource Management

The operational efficiencies offered by HRIS can lead to significant cost reductions.

By automating key HR functions, companies can lessen their dependence on manual processes and lower administrative costs.

Additionally, HRIS's precise control over employee benefits management, a major expense area, ensures efficient resource utilization, highlighting the financial benefits of HRIS software.

This, of course, does mean that appropriate HRIS training is necessary. No platform is without its quirks and flaws

Even the best HRIS Software has a learning curve to get the most out of it.

Ensuring Compliance and Reducing Risks

Deel added HRIS to bring global compliance for remote teams

Compliance with labor laws and regulations is a significant challenge for many organizations.

HRIS assists by keeping current with employment laws and ensuring company policies comply, reducing the risk of legal issues and enhancing the organization's compliance stance.

This is vital for protecting against potential legal challenges, especially so for global teams practicing remote work.

Employer of Record services like Deel have jumped on this opportunity and complemented their services with full-blown HRIS software.

This makes managing remote teams less of a legal and administrative nightmare for HR teams – who have better things to do with their time.

Enhanced Employee Experience and Engagement

Your HR Information System often features employee self-service portals, which enable employees to handle HR tasks like updating personal details, viewing payroll information, and managing benefits.

This improves HR data accuracy and boosts employee satisfaction by giving them control over their information and speeding up request processes.

Such improvements are crucial for retaining top talent and fostering a motivated workforce.

Some HRIS providers, including platforms like Lattice, built their solutions from the employee experience backward.

Employee engagement remains a key priority for HR, so starting off with the right HRIS makes a lot of sense.

Getting You Ready for the Age of AI

Anthony mentioned that data is so critical, especially in 2024,  because we are working in the age of AI.

As the top AI in HR platforms show us, servicing employee and improving their experience is a massive use case.

From newer players like Leena AI to legacy platforms like Service Now making major AI upgrades, everyone sees how speaking to an AI simplifies HR management and improves the employee experience.

This is why HRIS platforms are starting to embrace AI, even enterprise-level providers like Workday HRIS.

AI only works when you have properly structured data, making choosing an HRIS ready for an AI-driven world of work a critical investment to future-proof you as an HR team and organization.

The Bottom Line: Benefits of HRIS

Human Resource Information Systems transcend automation of HR tasks; it's a strategic asset transforming how you manage the data of your most valuable asset— people.

From boosting operational efficiency and cutting costs to improving employee satisfaction and ensuring compliance, the manifold benefits of HRIS clearly underscore its necessity.

For businesses aiming to excel in today's market, investing in a robust HRIS is imperative.

That's not to say that an HRIS is the only HR Software you'll need to buy – no matter how much we'd love for one system to do it all.

As HR Tech guru Josh Bersin shared in a recent interview with me:

"Anyone who thinks they're going to buy only one HR platform is very naive. It's never going to happen. Even small companies. We have five or six systems here, and we're not that big." – Josh Bersin

To see a full overview of the best HR Software, see my guide here.

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