The document discusses the advantages and disadvantages of human resource information systems (HRIS) for businesses. It outlines benefits like streamlining HR processes, ensuring compliance, and freeing up HR staff time. However, it also notes disadvantages like high costs, difficulty finding qualified specialists, and risks of human errors in data entry. In general, the document examines factors for businesses to consider when deciding whether and how to implement an HRIS.

1. Advantages & Disadvantages of Human Resource Information System
by Ruth Mayhew, Demand Media
Chosen wisely, a human resources information system can benefit your company.
Computer image by Altmann from <a href='http://www.fotolia.com'>Fotolia.com</a>
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When the decision to build a human resources information systems department is made, examine the options carefully and be
aware of technology and human resources trends for a small business. Small businesses have unique needs based on company
goals for growth, or a plan to remain small with access to technology without the hefty costs. The term &amp;quot;human
resources information systems&amp;quot; (HRIS) often is used interchangeably with human resources management system
(HRMS) and human resources information technology (HRIT). Any of these terms is used to describe the computer and
information technology a company utilizes to automate human resources functions and employment actions.
Background
Human resources information systems have evolved since the 1980s from relatively simple computer applications to virtual
vaults of sophisticated human resources information and processes. HRIS also is the name of the human resources discipline for
HRIS specialists and other human resources professionals involved in the technology for employment and personnel matters. An
HRIS is used for employment actions such as applicant tracking, performance management, attendance, compensation and
benefits management, work force analyses, and scheduling. You may hear about Enterprise Resource Planning (ERP) systems
into which your company&amp;#039;s HRIS can be integrated. An ERP is for all business matters, including profitability
analyses, inventory control and investor relations data. These sophisticated systems generally are for large employers with
complex technology needs. A very popular use of HRIS is employee self-service. Many employers are utilizing their HRIS to

2. supplement the human resources department staff by enabling employees for find answers to common questions they would have
asked a human resources representative. An employee self-service component can be used in a small business setting because it
can be configured to accommodate work places with a dozen employees to companies with 10,000 employees.
HRIS Advantages
The advantages of having a sophisticated HRIS or HRMS are many. An HRIS or HRMS monitored by qualified specialists who
know technology and HR functional and tactical processes can manage compliance with federal and state laws, streamline
processes for recruitment and selection, and produce analyses, data and reports for internal and external use. Other advantages of
an HRIS include the ease of use for qualification computer technology specialists, accuracy of information and the ability to
perform HR audits using any combination of parameters. The employee and manager self-service features are excellent ways to
free up the time of your human resources staff members for project work and other duties. Employees and managers can locate
answers and information quickly without the need to consult an HR representative every time.
HRIS Disadvantages
An HRIS also can be a problematic for small businesses in which some employees must wear many hats. If your company
isn&amp;#039;t big enough to have a dedicated human resources technology specialist, consider outsourcing. Some of the
disadvantages of an HRIS involve human error during information input, costly technology to update your system and
malfunctions or insufficient applications to support your human resources needs.There is a demand for computer and technology
specialists with general information technology knowledge, and finding a qualified specialist with human resources functional
area knowledge can be difficult. With such a demand, your cost to hire an HRIS specialist may be far above the average salary
for a computer technology specialist. The cost per-hire for another employee in a specialized field may be a stretch for some
small businesses.
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References (4)
Resources (4)
About the Author
Ruth Mayhew began writing in 1985. Her work appears in "The Multi-Generational Workforce in the Health Care Industry" and
"Human Resources Managers Appraisal Schemes." Mayhew earned senior professional human resources certification from the
Human Resources Certification Institute and holds a Master of Arts in sociology from the University of Missouri-Kansas City.
Photo Credits
Computer image by Altmann from Fotolia.com
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