What is HRIS Software and 7 Ways It Can Benefit your Business

What is HRIS
An HRIS can help them stay organized while streamlining their daily responsibilities like recruiting, onboarding, payroll, and more.

Key points:

  • An HRIS system automates HR and payroll processes, making it easier to gather, track, and manage employee data.
  • HR technology can help any organization save time, stay compliant, and engage employees.
  • An HRIS gives your employees the power to take action themselves in updating their personal information and enrolling in benefits plans.

Human Resources departments handle almost every aspect of a business. From recruiting and onboarding to payroll, analytics, and everything in between, HR professionals have a lot to manage. An HRIS can help them stay organized while streamlining their daily responsibilities. Whether you want to learn more about HR software, or you want to know if it is right for your business, this post tells you everything to know.

What Is HRIS? 

A Human Resources Information System is a software solution that combines human resources and information technology. It is a single source for all of your HR information, eliminating the need for separate systems. By unifying and automating HR and payroll processes, an HRIS makes it easier to stay organized, track employees, and otherwise manage employee information.

What Are 3 Different Types of HRIS?

HRIS, HRMS, and HCM are three types of HR software that, in practice, have become interchangeable terms. 

A Human Resources Information System is an online platform that helps businesses manage core HR operations by maintaining, managing, and processing detailed employee information and HR-related policies. 

Some providers refer to their software systems as a Human Resources Management System (HRMS) or Human Capital Management (HCM) system. Although they use different names, these programs are very similar to HRIS software. All three programs help HR professionals manage HR processes, employees, and data.

How Is an HRIS Different from Other HR Technology?

As an interactive system of information management, an HRIS helps store accurate and updated employee data while streamlining important HR tasks to help businesses enhance their processes. This software also offers more efficient interactions between employees and the companies they work for. 

What Features Does an HRIS Have? 

Like the HR professionals that use it, an HRIS impacts almost all areas of the employee lifecycle. The features and functions included vary, but most software solutions include:

What Are the Top 7 Advantages of HRIS? 

This software is designed to streamline your processes, simplify data management, and support your HR strategy. Because of this, it offers several benefits that make it worth the investment:

All-in-one capabilities 

An HRIS can handle almost every aspect of HR, so you only need one system, saving money and eliminating repetitive data entry.

Time savings 

An HRIS uses automated workflows to streamline manual processes. 58% of organizations say their onboarding program is focused on paperwork, but withian HRIS, the automated onboarding workflow gives you the time to focus on the new hire instead of the paperwork. 


If you rely on paper-based processes, an HRIS can help you reduce your paper consumption and create a more sustainable workplace. Digital document management lets you obtain compliant eSignatures and store records securely in the cloud.


HR professionals juggle a variety of tasks, which can make it hard for them to keep track of new legislation and ensure compliance. Most HRIS programs have built-in audit and compliance tools to catch any errors, as well as the most up-to-date forms and law changes. Send alerts when laws change, an employee approaches overtime, or other compliance issues arise. Some providers even offer services for things like ACA compliance to make this even easier.

Data security 

Whether you currently store your employee information in paper files or a digital format, keeping your data secure is a top priority. HR software has encryption, risk management, and other security standards in place to keep your information safe. HRIS providers also ensure high reliability and availability. This means that you have consistent access to your information and data losses are kept to a minimum.

Access to HR metrics 

If you rely on paper processes and spreadsheets, it can take time to gather and analyze your HR data. An HRIS makes it easier to assess important HR metrics like turnover, benefits participation, and absences. You can see your data in real-time, and the software helps you generate reports in just a few steps. You won’t have to re-enter information or perform calculations by hand.

Streamlined employee experience 

According to PwC, organizations with cloud-based HR technology increase efficiency and productivity by 44% and improve the employee experience by 40%. Organizations without cloud-based HR technology only see an increase of 18% and 19%, respectively. 

An HRIS gives your employees the power to take action themselves. They don’t need to ask you to change their contact information, add a new dependent, or enroll in a benefits plan. Instead, employees can self-service. You’ll still be able to manage approvals, but your employees will have a more engaging experience. In the long run, this can lead to higher productivity, employee satisfaction, and retention rates.

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How Do You Know If You Need an HRIS? Is It Right for Your Organization? 

Regardless of your organization’s size, industry, or HR needs, a Human Resources Information System can streamline your processes and relieve some of your HR burdens. Simply put, this software benefits almost every business.

However, certain circumstances may make this technology more attractive. It may be time to find a provider if you:

Have overworked HR professionals 

Your HR department handles a wide range of tasks and processes. If your HR professionals are overwhelmed or burnt out, an HRIS can automate the majority of their daily processes and reduce their stress.

Notice errors 

Frequent errors, especially human errors, can cost your business money and create extra work for your HR department. If you notice errors like incorrect pay stubs, noncompliant records, or something similar, you may want an HRIS to help you stay accurate and compliant. Audit tools and other automated workflows can help you check your work and catch any errors before you’re penalized.

Experience growth 

While any business can benefit from this software, growing companies often find them especially beneficial. The reason is simple: when a business has more employees, they have more data to gather, track, and manage. It can be harder to develop and connect with each employee, too. An HRIS can help you manage more data while ensuring no employee is neglected.

Think you need HR technology 

In truth, there is no specific set of criteria your business needs to meet in order to implement HR software. You know your organization best—if you think this software could help, you’re probably right.

Is an HRIS Worth the Investment? 

An HRIS can be a major investment, but it can also dramatically impact your HR department (and your business as a whole). Reduced costs and data entry, increased efficiency and productivity, streamlined workflows, increase employee engagement … the benefits of an HRIS make the investment well-worth it, especially when you see the ROI almost immediately after HRIS implementation

If you’re ready to learn more about how an HRIS can help your business specifically, schedule a demo today!


What Are the Advantages of HRIS? 

  • All-in-one capabilities
  • Time savings
  • Sustainability 
  • Compliance
  • Data security 
  • Access to HR metrics
  • Streamlined employee experience

What are the most popular applications of an HRIS?

The most popular application features of an HRIS include:

  • Employee self-service portal
  • Payroll
  • Benefits workforce management and administration
  • Recruitment and talent acquisition
  • Onboarding
  • Talent and performance management
  • Document management, and more.

Who uses HRIS and how is it used?

An HRIS is used by HR professionals to easily automate HR operations in their organizations. this software helps organize and streamline the daily responsibilities of HR managers by providing a single database for all HR information, eliminating the need for disparate systems. 

Who needs HRIS?

This software is suitable for companies with over 50 employees. Everyone including HR Managers and employers can benefit from HRIS in order to manage their data on their own and have a hold on their employees from anywhere. 

How is data collected for HRIS?

HRIS data can be collected in multiple different ways from information provided by an employee to information gathered through surveys. Data can be collected passively through employees from the moment they are recruited for a job just by using this software. 

What software is used for HRIS?

Selecting this software is a big decision and preparation is key to making the right choice for your business. SentricHR’s HRIS will give you a streamlined way to manage your teams from hiring and onboarding to each employee’s PTO. 

Find Out More about How SentricHR Can Benefit Your Business

An all-in-one HRIS software like SentricHR will simplify your HR department’s day-to-day tasks, streamline your business operations, improve retention and engagement, and so much more. In other words, it will deliver exceptional return on investment.

Contact us today to schedule a demo or learn more.


The Sentric Team

The Sentric Team

At Sentric, we help businesses make people management easier with industry-leading technology and standout support.

Sentric HR & Payroll Insights

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