Are you a business owner or an HR manager?
If so, you’re likely familiar with the term Human Resource Information System (HRIS).
But if you’re yet to explore its benefits, you’re in the right place. HRIS is more than just software; it’s a game-changer for your business. Let’s delve into why it’s essential for your business.Â
Proper workforce management can be both rewarding and challenging.
Today, software such as HRIS plays an essential role in simplifying business human resource management.
If you are trying to figure out why you need HRIS for your business, you’ll need to stay till the end of this blog. This is because we will discover why HRIS is essential in this blog.
Table of contents
Implication of HRIS for Modern Businesses
Before the era of technological advancements, businesses were grappling with a multitude of HR tasks.
These tasks, from recording employee information to processing payroll and managing benefits, were all done manually. Imagine the time and effort it took to keep up with these processes!Â
However, the scenario has changed today due to technological advancements.
Today, user-friendly software designed especially for human capital management can carry out the majority of HR functions.
One such software is HRIS, which is designed for the management and automation of core HR processes and administrative tasks of a business.Â
HRIS is used by most businesses to carry out day-to-day HR tasks.
From employee information management to employee self-service, HRIS has several different uses. The use of HRIS has helped modern-day businesses easily carry out core HR functions and administrative tasks.
Importance of HRIS for Business
In the earlier section, we discussed how organisations are switching towards HRIS.
Now, it’s time for us to find the reason behind the switch. One way to determine the cause is to know why HRIS is essential. So, without any delay, let’s quickly jump into learning the importance of HRIS,
1. Centralised Data Management:
As the name suggests, a human resource information system is software that helps businesses store and manage employee information in one place. Now, you might be wondering why keeping employee information in one place is important.
For example, you store employee data in several systems separately.
The employee data is maintained separately for different departments, e.g., payroll, benefits administration, and others. This can lead to several difficulties, such as inconsistencies and difficulty accessing the data.Â
However, with an HRIS, all the data can be stored in a single unified system, reducing inconsistencies and providing easy access.
2. Enhancement of Efficiency and Accuracy:
If your business has not implemented HRIS software, you might have encountered inconsistencies while performing HR functions. While this can be due to several reasons, the most common is manual errors.
This is where the answer to why HRIS is essential for businesses lies.
HRIS software can liberate you from routine HR tasks such as payroll processing, benefit administration, and employee record keeping. Automating such tasks reduces the possibility of human errors, ultimately enhancing efficiency and accuracy.
3. Employee Satisfaction:Â
Suppose that in your business, each employee needs to ask HR personnel for employment-related information.
This can range from issues in payout to requesting time off. Does this sound practical, and would your employees be satisfied with it?
Today, HRIS software has employee self-service portals.
These portals are designed so that employees can access information related to their employment. This helps increase employee satisfaction, as they can have access to transparent information without the need to reach out to HR personnel.
4. Cost Reduction:Â
As we discussed earlier, HRIS can help to perform and automate several core HR functions.
It can efficiently perform tasks such as payroll processing and benefit administration. Such automation helps to improve accuracy and reduce errors caused by manual entries.Â
Reducing inconsistencies and errors helps save costs, as your business does not need to invest in resources to rectify them.
On the other hand, automation will reduce the burden on HR personnel to carry out such repetitive tasks. This will provide them with more time to focus on more strategic work.Â
5. Scalability:
Your business can grow over time, and with the growth of the business comes a growth in the number of employees.
One of the challenging tasks when a business grows is to manage employees properly.
If the number of employees grows, you will need to maintain proper records of new and existing employees.
A good record-keeping match can be costly. HRIS comes with scalability features so that you can easily manage and automate core HR functions without worrying about the growth in the number of employees.Â
6. Compliance and Security:
The compliance and security that HRIS software offers are another reason why it is essential.
Ensuring that your business meets all the rules and regulations concerning labour laws is crucial to preventing costly fines.Â
HRIS helps your business comply with various labour laws by maintaining accurate records and generating necessary reports.
Moreover, HRIS software includes robust security measures such as encryption and regular backups, ensuring the safety of your sensitive data.
Level Up Your Human Resource Management Game with Ensaantech
What’s equally important when implementing an HRIS system in your organisation is choosing the right HRIS software.
This is where Ensaan Technology comes in. As one of the leading and most trusted HR software providers in the GCC region, including UAE, Qatar, KSA, and Kuwait, Ensaan Technology has helped several organisations manage their workforce efficiently.
Having served and gained the trust of over 60+ organisations to manage their workforce, it’s your turn to try it. Find out what Ensaantech has to offer for your organisation.
Conclusion
Proper workforce management is crucial for business growth and continuity.
With the growth in the business and the number of employees, it can take time to manage employees properly. HRIS software is an effective tool for helping companies manage their workforce.
HRIS is essential for modern businesses as it helps manage and automate various core HR functions.
It works as a centralised data management platform, enhances the accuracy and efficiency of HR tasks, and uplifts employee satisfaction.
Similarly, HRIS can help reduce costs by eliminating manual HR-related functions that reduce errors and inconsistencies.
It also helps to keep sensitive employee data safe and saves you from costly fines related to labour laws, no matter the size of your business’s employees.Â