What Is an HRIS? Definition, Features, Benefits & UK Guide

An HRIS (Human Resources Information System) is a central source of truth for HR data. HR teams can use an HRIS to store and process information, gather data and insights and report on trends.

An HRIS helps you to:

• Collect and manage employee data

• Streamline workflows and processes

• Create better employee experiences

• Access people data insights

• Generate reports

Best for: Businesses of any size that want to take HR seriously and benefit from greater efficiency and support for compliance, including UK-based medium-sized businesses.

A Human Resources Information System (HRIS) enables HR teams to store, manage and use people data for purposes like time-off management or onboarding.

An HRIS performs three main roles:

• System of record: Create a single source of truth, where all employee data is stored securely in one location. 

• Workflow and process automation: Streamline tasks to save time and improve accuracy. Commonly used for leave requests and approvals, onboarding tasks and role change requests. 

• Reporting and insights: Collect data and report on headcount, absence trends and more, then use this to make data-driven decisions. 

An HRIS contains a range of HR data, from employees’ personal details to your policies and request forms. It acts as a database for both sensitive, confidential information and process or policy-related records.

Examples of people data categories stored in an HRIS include: 

• Personal details

• Employment details (e.g. start date, role)

• Leave and absence data

• Hours worked and time recording data

• Organisational structure

• Documents (e.g. policies, forms)

• Workflows and task history

Store only the data you need to fulfil your obligations, and make sure that it’s properly safeguarded so only those who need access have it.

There are three main types of HR software: Human Resources Information System (HRIS), Human Resources Management System (HRMS) and Human Capital Management (HCM) tools.

 A simple way to compare them is to think of HRIS as the most simple model. An HRMS adds more features, and an HCM goes even further with in-depth analytical tools for big, multi-national companies. 

The exact term used varies by vendor, but here’s a practical distinction:

When you’re deciding which type of software is right for you, focus on the capabilities of specific platforms and the outcomes they can deliver–not the labels. 

Every HRIS system has a slightly different set of features, but this type of software often includes everything teams need to manage employee data and everyday HR tasks. 

Depending on the system, an HRIS may include other features more commonly found in a traditional HRMS too–like onboarding or performance management. 

An HRIS helps growing businesses cover the basics and take steps towards operating in a more organised, efficient and compliant way. But the benefits go beyond this, and businesses can see a noticeable impact if they choose the right HR system.

The major benefits of switching to an HRIS include: 

• A central place for all things HR: Introduce a single source of truth for employee data, leading to more transparency, reduced errors and easier access to information.

• Time savings: Automate tasks that don’t require a personal touch, and free up HR and employee time to focus on more important activities. 

• Improved accuracy: Let the system take care of calculations and processes, so there’s less room for manual error.

• Easier compliance: Lean on your HRIS for the data recording and reporting you need to comply with UK legislation.

• More consistent employee experiences: Deliver better experiences in every area, from onboarding to submitting a form.

• Higher manager productivity: Give your managers their time back so they can coach staff and drive innovation, instead of manually handling time off requests.

• Better data for decision-making: Make stronger, more strategic decisions based on real-world data rather than intuition.

With an HRIS in place and working as it should, HR teams can free up valuable time to focus on strategy and people development instead of taking care of everyday HR admin.

Scaling businesses in the UK need to pay close attention to how their potential HRIS platform handles data protection and security. At a minimum, the system needs to be UK GDPR compliant–but there’s more that a vendor can do to support your own compliance.

Use this checklist to help you decide which software vendors cater to your needs: 

Note: This isn’t legal advice. Confirm with your legal or data protection team before choosing a system, to make sure it meets your requirements. An HR system can support compliance efforts, but it can’t guarantee compliance on its own.

Every HRIS has strengths and weaknesses, so it’s crucial to know what you’re looking for before you begin your search. Here’s how to approach the process of finding the best HRIS for your business.

A good HRIS can tackle a wide range of challenges, but being able to pinpoint your problem area as onboarding or employee engagement means you can build a shortlist of tools that excel in the right area.

Mid-sized businesses often seek out an HRIS to:

• Organise employee data more effectively

• Save time and reduce errors

• Introduce (or improve) performance reviews

• Reduce the number of individual HR tools in use

• Manage onboarding at scale

• Improve data flow between different software

• Understand employee data

• Improve employee experiences

• Support better compliance

• Scale quickly and efficiently

Find the reason that aligns with your decision to seek out an HRIS and put this at the centre of your search: it’ll help you focus on what matters most when you compare options.

Some businesses are happy to pay more for a higher level of service and more features, while others prioritise affordability and are happy to build out their features with integrations. Get clear on your non-negotiables so you can eliminate options that don’t align with how you work.

Use these categories to build your must-haves list:

• HR features

• User experience

• Employee self-service

• Reporting and analytics

• Total cost of ownership

• Compliance support

• Local knowledge

• Integrations

• Data security

• Implementation

• Customer support

Once you’ve agreed on your must-haves, use them to create your own scorecard so you can easily see how different HRIS systems compare. If you’re required to send a Request for Proposal (RFP), now’s the time to prepare it ready to send to your shortlisted vendors.

There are hundreds of HRIS tools out there, but it’s not realistic to test them all. Use your goals and non-negotiables to build a shortlist of realistic options so you can find your ideal fit faster.

Aim to select 3-7 platforms for your shortlist. Include your favourites, but also consider adding a wildcard option or two. Once you demo or trial different tools you might find that your preferences change.

Contact vendors and book demos for the shortlisted software tools on your list. Start with the platform that you feel is the best fit, and work your way down the list until you’ve tried them all.

Some providers host a live demo, while others will create a personalised sandbox environment for you to experience the HRIS for yourself. Take advantage of any opportunity you get for a hands-on trial of the software, as there’s nothing more insightful than trying to execute a real task.

Don’t shy away from asking implementation questions at the early discussion stages. It’s essential that you know whether the process is fast and fuss-free or drawn-out and complicated. 

The right implementation process can impact adoption and engagement, so you need to know what to expect. If it sounds like the journey will be rough, consider whether it’s still your first choice of HRIS software. 

Speaking to vendors will give you some insight into what becoming a customer would be like, but the real gold is in user reviews. Read through real user experiences to understand the good and the bad.

Look out for these green flags and red flags:

Every HRIS onboarding and rollout is different, and it depends on the complexity of the project, which modules or integrations you need and how ready your data is for import. However long it takes, it’s helpful to follow an HRIS implementation roadmap.

A smart roadmap features five steps: 

1. Planning and project setup: Create a clear plan that sets out your vision, a realistic timeline and a communications strategy.

2. Building and configuring the HRIS: Customise settings and get your new HRIS ready for the data import process.

3. Data migration: Transfer data across to the HRIS manually or have the implementation team handle it for you.

4. System testing: Create a pilot programme and ask team members to thoroughly test the system alongside you before you invite everyone.

5. Rollout: Send out invites to every team member and introduce the new system through a series of training sessions and helpful communications.

Finding the right HRIS is all about understanding your needs, comparing options and asking the big questions to figure out will work for you. If you’re looking for an HRIS that blends core HR with AI insights and a UK & European focus, Personio could be an ideal match.

With Personio you can enjoy:

• Centralised data

• Workflow automation

• People analytics and AI-powered insights

• Employee lifecycle support

• Implementation support

• European-aligned security standards

An HRIS system is a platform where you store employee data and documents and take care of various core HR tasks–including time-off management, onboarding and reporting. It’s typically at the centre of your HR tool stack and the single source of truth for people data.

HRIS stands for Human Resources Information System, and it’s the software that HR teams use to store, manage and use employee data for purposes like absence management and analytics.

HRIS is a type of HR software. Other types of HR software include HRMS (Human Resources Management System) and HCM (Human Capital Management) software, as well as standalone tools for payroll, recruiting and employee benefits.

Traditionally an HRIS is a more basic type of HR software, while HRMS extends the usefulness of your HR platform by adding features like performance management and recruitment. These days there’s often little difference between the two, with some vendors using HRIS and HRMS interchangeably.

Yes, even small businesses can benefit from an HRIS. An HR platform that centralises employee data, docs and core HR tasks allows employees to work more efficiently, saving time for higher-value work. 

The right time to invest in an HRIS is when your organisation experiences growth that makes manual HR processes inefficient and error prone. Indicators include increased employee headcount, the need for more streamlined recruitment and onboarding processes, challenges in managing payroll and benefits accurately and the necessity for compliance with complex labour laws. If your HR team is spending too much time on administrative tasks rather than strategic initiatives, it’s a clear sign that an HRIS could add significant value.

An HRIS should cover all core HR functions, with features including employee data management, onboarding, absence management, workflow automation and people analytics. Some HRIS platforms like Personio also offer extra features like recruiting, performance management and workforce planning.

Implementing a new HRIS can take anywhere from a few weeks to several months, depending on the complexity of the system, data readiness and how much support you receive from your chosen vendor. Personio’s guided implementation process typically takes 4-8 weeks.

Look for HR software that’s compliant with UK GDPR and the UK Data Protection Act, so you can be sure that data is being stored securely within Europe. Some HRIS tools are based in the US or elsewhere in the world, so it’s important to ask where your data will be stored.

HRIS software is typically cloud-based, although some legacy software may run in a local environment instead. The benefit of cloud-based HR software is that you can access it from anywhere, it’s more affordable and there’s greater security infrastructure.