2.8 Human Resources and Technology, HRIS

History of HR and Technology

As we have seen throughout this book, technology increasingly influences HR processes. The advent of relational Database Management Systems and database management/programming in the mid-1980s has helped HRM evolve from manual, transaction-based bookkeeping to semi-automated processes. A good example is the onboarding process, which can now be individually tailored and automatically triggered by the data points obtained in the recruitment process. For example, the software orientation session will not include recruits with experience with a specific POS (point of sales software). If they have never worked in a team environment before, they will be included in the session on teamwork. Twenty years ago, such precise customization was unthinkable.

Today, every HR process has a technological element that enables it. Take a simple recruitment scenario, for example. A job posting can generate hundreds of applications. All of the resumes received are housed on a server somewhere, and recruiters spend countless hours screening these resumes to decide which applicants should be interviewed. This scenario represents a typical HR process: information is used to make decisions. Now, imagine there was a way for you to dig into the database and look at the findings of each recruiter to see whether they are consistent in their evaluation of the resumes. Imagine detecting that one specific recruiter tends to become more lenient as the day goes by, as she gets tired. Or that another recruiter has a slight bias against applicants who graduated from a particular university or is less favourable to applicants with Asian-sounding names.

If you think of this scenario, all of the information used to draw these conclusions is available: Content of the resumes, the decisions of the recruiters, who made these decisions and when, etc. A very motivated HR manager could input all of this information into an Excel sheet and manually extract meaning from this data. However, to do this efficiently, there needs to be a way to have the data already collected and organized. This is what a Human Resource Management System (HRIS) does.

Human Resources Information System (HRIS)

A Human Resources Information System  (HRIS ) helps companies organize and manage people-related data. Because all this information is housed in one location, it is a single source of accurate data. It often allows users to create reports that can be used to identify trends and make business decisions. Using an HRIS, HR Managers can, in just a few clicks, find out the average salary of junior sales associates in a particular store, identify the last employee promoted in the Saskatoon plant, determine how many times employees consulted their performance feedback reports, or confirm how much was invested in leadership training company-wide in 2020.

An HRIS system is an expensive and time-intensive commitment for any organization. Therefore, organizations should do their due diligence and involve the appropriate stakeholders in evaluating and selecting the best possible HRIS. Many HRIS choices are available at different price points and provide different levels of functionality. The cost for HRIS is based on various pricing models. Some are based on the number of employees, and the price varies between $1 to $20 per employee each month. Other systems are based on ‘users’, defined as the employees that use the system, mostly HR Managers.

Given the importance of the employer’s choice, the package selected should meet its current needs and have the flexibility to grow and expand with the organization into the foreseeable future. However, budget constraints, hardware and time will affect the choice.

Benefits of HRIS

There are many advantages to adopting an HRIS system. Here are the main ones:

• Organization – An HRIS allows for information to be easily collected, tracked, updated, and searched.
• Compliance – An HRIS will stay current on HR regulations and adapt the software to make it easy for organizations to meet compliance requirements if, for example, the government were to change.
• Time Savings – Many HR processes are made quick and simple with an HRIS. For instance, employees can ask for time off using the mobile application, and the manager can approve it in seconds the same way.
• Employee Experience – An HRIS can help improve employees’ perceptions of their organizations. Whether through a smooth and quick onboarding process, an app that allows employees to look up a coworker’s contact information, or the ability to update and request time off, a good HRIS can help employees have a better experience.
• Convenience – Most HRIS now are multi-platform, and managers have the ability to pull together a report in only a few clicks on their phone.
• HR Strategy – With fewer operational tasks to manage, HR Managers can spend their valuable skills and time on strategic HR initiatives that improve business outcomes. Improving retention, increasing productivity, and monitoring the company culture are just a few ways HR can better inform their HR strategy when they have an HRIS.

Other HR Technology

Although HRIS is most associated with HR technology in automating human resources functions, there are other types of technology that HR rely on to create productive and engaging work environments.

Cloud technology:  Allows HR to use data hosted externally on third-party platforms; and software and maintenance can be managed by outside vendors. It is easy to scale a business size quickly and update software with new functions.

Human Capital Management (HCM):  Include “one-stop shopping” technology with a suite of functions that include records, payroll/benefits, training and development, onboarding and performance management. These systems operate under one system.

Self-Service Tools:  Information and data is readily stored and retrieved by employees. It is a convenient and practical system for all employees.

Applicant Tracking Systems: (ATS): Assists with recruiting and selecting potential employees. They track resumes, post open positions to job boards and social media, and can communicate with candidates by chat. Artificial Intelligence (AI) tools have changed how applicants are screened and interviewed.

Learning Management Systems (LMS):  Deliver personalized learning to employees. They have access to broad selections of learning content; and often employees are able to control their own learning and career development.

Artificial Intelligence (AI):  Used in many capacities to create efficiencies, increase productivity, and reduce issues with other technology. Algorithms are used to assist in hiring and promoting employees, match employees to jobs, and to reduce Human Resources’ workload by answering employee questions through chatbots. Another important function  is the “use of AI today is occurring in people analytics software. HR is using increasingly sophisticated algorithms to understand better and uncover what’s happening with the workforce, particularly from an engagement and employee experience perspective…” (Zielinski, 2023).   AI is not without its issues. HR needs to maintain AI use in ethical ways, follow legislation and ensure transparency in how decisions are made through AI.

“2.7 Human Resources Information Systems (HRIS) and HR Analytics” from Human Resources Management – 3rd Edition by Debra Patterson is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.