Benefits of a human resources information system include reducing the amount of time human resources personnel spend completing tasks, increasing the organization of company documents and policies, empowering employees to self-manage benefits and connecting various departments through a single interface. The system also helps manage recruitment and training processes.
A human resources information system is a program that allows the HR department of a company to manage all the aspects of the job in a single location while also increasing productivity and transparency between departments. These systems typically contain tools to manage data such as employee personal information, company records, benefits options and payroll files, offering unique access portals for managers and administrators in the appropriate sectors of the company. As such, HR personnel can quickly access information and transfer it to the appropriate documents rather than checking multiple systems or having to fill out paperwork by hand.
Many companies use these systems to create employee self-service sites that allow for individual management of pay stubs and elections for benefits such as health insurance, retirement plans and commuter expenses. Human resource departments are also able to create centralized copies of documents such as employee handbooks or specific policies to share amongst employees, ensuring that everyone has access to the most recent version of the documents. Another use of the systems is to track applicants for new positions, assign tasks for recruiters and manage training documents for new employees.
Human resource information systems also allow employees and managers to find organizational and task information without consulting human resource representatives. These self-service features reduce unnecessary interactions and free up time to work on more relevant projects. Some limitations of human resource information systems include the high costs incurred in acquiring and maintaining the systems, human error during information input, and technical malfunctions that may undermine the accrued benefits.