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Ever Wondered What The Benefits of Having HRIS Within An Organization Are?

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Ankkita Chauhan
December 5, 2016

Human Resource Information System (HRIS) is a software through which organizations can take care of all HR processes and unify employee data in a single system. There are quite a number of benefits of HRIS systems, some of which are mentioned in this article.

benefits of hris system

1. HRIS system is cost effective. It saves you the expense of actually hiring someone to take care of physical copies of data and records.
2. Apart from employee expenses, it’s also really cheap and doesn’t cause a huge hole in your pocket whether you’re a big firm or a small one.
3. As this data is entered manually by the person with authority, you can trust it to be accurate. It’s going to show exactly what was entered without any errors.
4. What’s more is that you only have to enter the data once, such as a salary slab or a new policy, and it can be applied in multiple places. Any changes made are also automatically updated wherever the policy has been assigned without having to manually change it everywhere.
5. Obtaining information becomes a very speedy process as all you need to do is type in what you’re searching for. The benefit of HRIS system is that it’s a one-stop solution to all your queries.
6. It becomes easier to compare and analyze data in order to generate timely reports for every employee. The quality of these reports is raised too with increased accuracy.

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secure cloud based hris software

7. Uses of HRIS software in organization also includes announcing any alterations or additions of policies, notices, and any other new adjustments.
8. HRIS can also be used to announce upcoming events or deadlines to every employee in one place. Employees can also respond with acknowledgements. This saves both the manager’s and the employee’s time in tracking every email response, confirming you responded, and so on.
9. Talking about tracking, benefits of HRIS also include tracking employee applications for reimbursements and leaves and view past applications along with their status as well. Employers can easily approve or reject requests based on their leave balances or information submitted when applying for a reimbursement.
10. Another use of HRIS in an organization is managing performance reviews. Multiple review cycles can be created for every unique employee based on their seniority or tenure at the organization. Uses of HRIS in HRM can be made to conduct time reviews and appraisals of every employee based on the review cycle assigned to them.
11. HRIS also provide you with automated reminders for when something is due like a project or an event deadline or a pending employee performance review.
12. HRIS can also store information and company documents which can only be accessed by authorized personnel. This means that HRIS are completely secure and confidential information can be stored without worries.

Along with having numerous benefits, there are also multiple types of HRIS available. These services are provided in various forms -- cloud-based/SaaS or on-site.

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Cloud-based/SaaS (Software as a Service):

A cloud-based software is suitable for organizations that have less than 10 employees as well as SMEs with over 100 employees. Most of these software are available on a per employee basis at remarkably low prices. Furthermore, knowing the importance of HRIS system, you can also pay only for the features that you need and select your preferred package. This makes it really affordable and budget-friendly for small organizations, startups, and SMEs. Cloud-based softwares are also extremely secure as confidential information is stored securely in the cloud. This information can also only be accessed by authorized personnel making sure it’s always protected.

on the go access hris

Installing this and implementing it in your organization is done with the help of the service provider to ensure a smooth transition from your current system. Upgrading the software is also not a hassle as the service provider themselves will take care of it. There are also dedicated customer support executives to help you out with any doubts you have at any given time. Another plus point of having a cloud-based HRIS software is that it is accessible from anywhere. Since everything is online, all you need to do is put in your login details from any device (mobile, laptop, etc.) with an internet connection. And you’ll have access to your data on-the-go, another addition to the uses of HRIS system in organization. This can come in handy when an employee is working from a client’s location or from home. Transitioning from your current system to this can be easy. All the excel sheets you have and the data you own can be transferred with one click to your new system.

With a cloud-based software, there’s no need for an IT department as it can be handled directly by the HR department. Using these systems is uncomplicated and once you get a demo of it, you’ll master it in no time. This saves you extra money and also time as there’s no middleman needed to communicate with the service provider.


An on-site software is only suitable for large-scale organizations with 100+ employees considering the factors involved in it. On-site software can get expensive as there are charges that will appear in the future and while using the software. Maintenance of the hardware, licensing fees, updating the system, the space required to install the hardware, etc. are just some of the extra charges. Apart from these, you will have to make sure there’s an IT department in place. Implementing this software and securing it is done by the IT department. This increases the cost again and can also be a waste of time as you will have to wait for them to configure everything as per their settings. They also need to get it up and running before you can make the most of the uses of HRIS in HRM.

expensive on premise hris system

On-site systems are only accessible by company browsers and authorized mobile devices. Which means that anyone working from home or another location would not have access to their data unless their device is configured.

Comparing the two types of services and the features they provide, it’s highly recommended to opt for a cloud-based or SaaS software to experience the best benefits of a human resource management system.

If you’re an HR looking for the perfect cloud-based solution to all your HR problems, book a free demo with sumHR now.

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Written by
Ankkita Chauhan
Ankita is a content writer at SocioSquares. She has 4+ years hands-on experience in copywriting, marketing and social media.
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