A human resource information system (HRIS) is software that allows companies to manage human resources functions like employment records, performance reviews, compensation, and benefits. While not all companies use an HRIS, there are benefits to doing so like reporting capabilities and recruitment tools. An HRIS collects employee data that can then be used to generate detailed reports on topics such as hiring practices, salaries, or performance reviews. It also enables online job applications and resume searches. However, some disadvantages are that the system may be costly to implement and maintain, require training to use properly, and take time to set up, potentially going over deadlines.

1. A human resource information system (HRIS) is computer software employers use to manage the human resources functions of
their organization. It has the capability to maintain employment records of all staff members, and employers can use it to collect
metrics surrounding the firm’s staffing, performance management, compensation and benefits activities. Although not all
companies utilize an HRIS system, there are many benefits to doing so.
Reporting
Perhaps the biggest benefit that the use of an HRIS system adds to a business is its ability to create reports and presentations. An
HRIS system typically holds all information surrounding the firm’s human resources initiatives, including details regarding the
group's hiring practices, such as a comprehensive listing of all job applicants, an up-to-date index of job openings and electronic
copies of each employee’s onboarding paperwork, such as I-9 and W2 forms. It also holds data regarding the salary and incentive
compensation of each staff member. Results of annual performance appraisals and any disciplinary actions that have been taken
toward members of the team are included, as well.
Because these figures are held in one database, a business owner possesses the capability of running a variety of detailed reports
that encompass some or all of this information. For example, when looking to hire additional staff, he can run a report of past
candidates who possess a specific skill set. Alternatively, he can run a compensation report to obtain needed information when
preparing the annual budget.
Recruitment
In support of a firm’s staffing efforts, many HRIS systems provide a sophisticated interface allowing its use by both internal
employees, as well as external job applicants. An HRIS system allows candidates for open positions to submit their resumes and
contact information to a potential employer from a remote computer. The system then collects the information and archives it so
it is easily accessible by the hiring manager. When seeking candidates, the manager is able to perform detailed searches of
collected resumes, using a variety of queries, including location, level of education, years of professional experience and
technical skill set. In addition, the software also allows current employees to electronically apply for new positions.
Related Reading: The Organizational Structure of Human Resource Information Systems

2. The disadvantages of HRIS can be -
1. The individual is not trained to operate it.
2. Vulnerable to technical breakdown...(preferred to keep a backup always)
1. Cost:
Some of the mature and the developed ones are costly. The product itself costs quite a bit. Added to this, are the costs of consultation for
implementation - studying the as-is status, identifying the gaps and making the necessary changes.
2. Time drawn:
Implementation takes a lot of time. Often the implementation overruns the deadlines. Then there are changes in the implementation team in
the interim leading to further delays.
3. Infrastructure:
They require the appropriate hardware and maintenance of the hardware. Procurement of the hardware goes through its process of
approvals and sanctions. Then it requires the support of the infrastructure or the systems admin function to ensure the maintenance.
The three factors above together contribute to organizations not implementing HRIS itself. First, they vet the different systems available.
Each one has its advantages and disadvantages. Second, given the cost and time one feels uncomfortable in choosing one amongst the so
many systems -what would happen if we make the wrong choice and the system does not take off after having spent so much.
But apart from the above operational issues there are more critical yet subtle issues.
4. Where is the value?
HRIS can be split into four parts - employee information, compensation & benefits, recruitment and the development parts (including the
appraisals, training etc.). Evaluation needs to be done on one, the information flow and the intelligence or improvements that the systems
may enable. Typically the first part i.e. information processing and flow works well for all the four HR sub systems. The workflows, rules,
security, forms, UI, reports ensure that they work well. All the stakeholders get the information they want, approvals are handled correctly
and controls are maintained. But then this is one part of the system. The other is the the core engine on which these work and what the core
engine is supposed to do and how it does this. Take the case of compensation and benefits.
The core engine includes combination of statutory requirements (social security, tax deductions, contributions) and corporate rules (who
should be paid how much, which component needs to be made how much). This core engine has the logic and provides the structure on
which the compensation and benefits are calculated, governed and administered. Because of this (mostly) well laid out structure and logic
the implementation of compensation and benefits systems are easier to implement and results easy to perceive. Expectations of the
employee information and the recruitment system are mostly from the perspective of information flow. There is not much of intelligence -
logic based processing expected or needed.
Now the the development parts of the HRIS which include the performance appraisal, training etc. are trickier. They can add value only if
they are able to contribute to development of the employees. Development of the employees can happen only if the system enable two
aspects of any development - diagnosis and prescription. Diagnosis of one's potential, one's capabilities, one's performance. Prescription for
what one's needs to do to develop one's capabilities, how the person can go about it, enabling and guiding the individual in this respect.
The development part of the IS fails because of this very reason - it is unable to play an effective role in the development by way of enabling
diagnosis and prescription. The reason for this is because there are no standard rules (compare with the income tax rules). And when there
are no rules there is no logic and when there is no logic no information system can be effective and so the IS fails as a development tool.

3. 5. Complexity :
When it comes to the development part of the system jargons are thrown in, different behavior from what is normally followed is expected,
sometimes it is too analytical and sometimes too "MBA" type. Essentially, simplicity is lost - simplicity which connects with every employee at
every level. And so the natural resistance creeps in making the IS ineffective.
For all these reasons the "development" parts of HRIS do not take off. BUT there is a desperate need for such a development system. Every
organization and organization management and leadership desire to have a healthy development system in place. If we were to do that then
we would need to set some rules for the development. We would need rules on profiling skills, proficiencies, roles, linkage between skills and
roles, career development etc. 3D Talent Development System from attempts to address the issues mentioned above and create a system
which help employers take their human capital to a higher level.