How to Build a Human Resources Information System
by Anna K. on Nov 23, 2022
Human resources management systems are game changers in managing and tracking employee data. They are a better way to manage human resources, which helps to fast-track everything. What does HRIS mean in the context of human resources?
What Is an HRIS
HRIS stands for Human Resources Information System. It is a software package designed to meet the needs of employees that automates tasks that can be done manually, such as recruitment, leave administration, attendance tracking, productivity evaluation, and payroll management, and includes a variety of features like a training platform or the ability to submit requests. HRIS is the most commonly used software in HR to collect, store, and manage employee-related data within a company, as well as to complete financial management processes.
See why HRIS is dominating in human resources management.
Why to Create a Custom HRIS Solution
HRIS has a bunch of features that streamline HR work processes. It provides a cloud system with everything stored in a collection of databases to assist the department in managing people, policies, and procedures within a company.
The primary advantages of building HRIS applications are as follows.
- Improved productivity. By reducing the amount of manual work, HRIS simplifies employee data tracking and reporting. As a result, data processing speed increases, and information accuracy improves.
- Improved efficiency and internal company processes. Tasks that used to take hours to complete can now be done in a matter of minutes or seconds. You get better employee engagement and team coordination. And the procedures are better organized.
- Improved decision-making strategy. Human resources information systems produce reports that can be easily shared between different departments to allow other members of a team to make better and faster decisions with a far-reaching effect on a company.
- Employee-self management and boosted satisfaction. HRIS makes a difference not only for HR specialists but also for any other member of a team, including a new hire. It simplifies onboarding processes and talent acquisition, allowing every employee to request for time off or update their information through the system.
A visual platform like HRIS is a big investment decision for a company with a positive effect on cost efficiency. The system can be either a small database or a complex visual platform built from multiple modules. Here is how to get it done right.
Define Goals and Expectations of the Future HRIS
To successfully create a human resource information system, first, identify the goals and expectations of the future platform.
Set project goals
What is the main purpose of implementing a custom HR information system in your company? The model you choose depends on what you are expecting to get. It can be anything from a transparent hiring process to a simpler way of handling payroll and people management. Determine the necessary functions and expected results.
Research the market
Who are you going to create HRIS for? What audience is going to benefit from using it? Different HRIS users may need different types of information in the system. For example, managers use it mostly to improve their decision-making strategy. Applicants use it to view available job opportunities.
Identify key stakeholders
Always communicate with executives and those who are going to develop a new HRIS platform to eliminate the possibility of internal conflicts and create a product that equally elevates design and function.
Analyze your HR processes
Evaluate your critical HR processes. Where and how is your HR data stored? In what way is it part of a workflow? Where do problems and interruptions in the flow occur? You may need assistance from professional business analysts to get all the HR processes, and practices analyzed effectively.
Factors to Consider When Developing HRIS
- Objectives. The main goal is to enhance the ability of human resources management, which increases efficiency and reduces costs by providing access to a centralized database with up-to-date information. To create a more productive workplace and improve communication between departments, consider HRIS a hub for both HR staff and employees.
- Functionality. Every HR management system focuses first and foremost on talent pooling and recruitment by constantly keeping track of employee profiles. More comprehensive systems match profiles to the available positions and offer training where it is required or indicate where a replacement for a position is possible if the company needs it.
- Security. Security and privacy are critical factors to consider when deciding to create a custom HRIS software solution. Sensitive employee and corporate data stored in a system should be protected by passwords and usernames. Access to information must be limited to authorized parties only.
- Implementation. The implementation of a new system should not interfere with any operations inside a company. For a smooth changeover, create an implementation timeline and keep the old system functioning in case any historical data is required.
Here are a few tips on how to get started and build a human resource information system project from the ground up.
Steps to Build an HR Information System
The process of custom HRIS solution development is based on a comprehensive plan with a defined timeline and budget. The steps involved in developing and implementing are as follows.
- Choose the tech provider for an HRIS project
The results you get are determined by having a product from start to finish developed by professionals who have prior experience in HR systems. A comprehensive implementation plan requires an appropriate vendor. The overall team requirements vary depending on the HRIS project you have, but the core of the team is always the same: business analysts, developers, and testers. An outsourced development team is an option if you want to select a team model tailored specifically to your project.
- Develop a Minimum Viable Product for HRIS
It is better to create the smallest viable product, or MVP, with only a few critical features so that users can provide their early feedback and help validate a product before releasing a final version. A significant amount of money can be saved in this manner. The team gets direct insights into users’ expectations and experiences with HRIS. It is achieved without marketing hypotheses about how the product is going to be perceived when it is launched.
- Consider both mobile and web application
Consider mobile accessibility as an alternative to a web application for your future HR system because it is more convenient to use on the go. Typically, the decision to build HRIS software in the form of a mobile application results from MVP. It demonstrates that the majority of candidates prefer smartphones to computers.
- HRIS Product development
After collecting data and testing small pieces, full product development begins. All features are created and gathered. At this stage, the product is tested to see if there are any gaps between the requirements and the results.
- Keep on HRIS maintaining
It is not enough to create HRIS software to add value to your business. Once the system is built, it must be regularly maintained and monitored. Any software, especially one with numerous integrations and modifications, requires updates. Maintenance should never be overlooked if you want to get the most out of your system and address current needs. The best HR systems are live systems. They are adaptable and expand as the company grows. As a result, ongoing support is required.
For more effectiveness, find a software development team that can cover all the aspects altogether and build a fully functional HRIS application.
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