Human resources information systems are essential for modern workplaces, but they are also significant investments. By carefully selecting and integrating a new HRIS — or making the most of the one you have — you can extract the most value from your HRIS investment.
Struggling to keep up with employee data, payroll, and benefits management? That’s where a formal human resources information system (HRIS) comes in.
Yet, navigating this marketplace can be difficult. Several solutions are available, and you need to find the one that will align with your business needs, process maps, and culture requirements. They can also take a substantial chunk of your HR budget, so choosing carefully is critical. If you choose a solution that doesn’t work for your organization, the result will likely be disruptive, costly and time-consuming software transitions.
So, where do you begin? In this blog, we will offer strategies for maximizing the use of your current HRIS solution and help you choose the best solution if you are purchasing or transitioning to a new HRIS.
What Is a Human Resource Information System (HRIS)?
A human resource information system is a software solution designed to help companies collect, manage, store, and process employee information — all while enhancing the employee experience. These systems come with a range of features, but the most common are payroll processing and recruiting.
For smaller businesses (fewer than 10 employees), platforms like Gusto are ideal. Medium to large enterprises often turn to solutions like Workday, ADP, Oracle, SAP, or UKG. And in the mid-market space, top contenders include Ceridian (Dayforce), Paycor, Paylocity, Rippling, HiBob, and many more.
The demand for HRIS solutions is steadily growing. According to Verified Market Research, company investments in HR software are expected to increase by 10 percent annually through 2028, with total spending projected to reach $33.57 billion. However, many companies face challenges in managing these systems effectively. Verified Market Research report notes that 30 percent of organizations currently use 10 or more HR systems, making integration and optimization complex.
A recent i4cp report further illustrates the challenge. It revealed only “17 percent of human resource leaders find their HRIS is ineffective and requires workarounds while another 12 percent are unhappy and planning to replace it.” Considering the high cost of investment, these statistics highlight the need for organizations to carefully select, implement and support their HRIS to maximize its value.
Yet, despite these seemingly woeful stats, building and using your HRIS solution brings tremendous benefits:
- Improved efficiency and automation
- Centralized data management
- Enhanced reporting and analytics
- Better compliance tracking and risk management
- Streamlined recruiting and onboarding
- Employee self-service
- Enhanced employee experience
- Scalability and flexibility
With the right focus and investment in training and support, growing companies can greatly benefit from the efficiencies and cost savings of investing in the right HRIS solution. The key lies in choosing the right solution.
Choosing the Right HRIS
While each HRIS provider aims to differentiate itself from the rest with branding, type of clients served, or focus areas, the following key factors can help drive your purchasing decision:
- Features: Consider the range of modules available, such as payroll, recruiting, benefits management, talent management, learning management, record management, case management, reporting, and more.
- Customization: Evaluate the level of sophistication and customization options within each module.
- Integrations: Assess how well the modules are integrated within each platform. Some systems have grown through software acquisitions, which can result in a disjointed experience.
- Existing Catalogs: Look for a list of pre-built reports or on-demand learning offerings that fit your organization’s needs.
- Managed Services: Determine the extent to which the provider offers managed services or automated features that add organizational capacity and help your team save time.
- Scalability: Ensure the software can grow and evolve with your business.
- Cost: Consider the total cost of ownership for year one, including implementation costs if applicable, and how costs may change over time. Look for what’s included in the base price, how the price is applied (typically by number of users), and how customer service support plays into that.
- Customer Service: Explore the solution’s customer support model and how it might serve your organizational and HR team needs. Consider asking to speak to current clients to get firsthand experiences.
Ultimately, the HRIS you choose should align with your company’s specific goals and needs. Whether you’re focusing on streamlining payroll, improving recruiting, or managing talent more effectively, the right solution will provide a strong foundation to build your business case and make an informed decision.
Get the Most Out of Your HRIS Investment
Once you have an HRIS in place, you need to maximize the investment. Many organizations underuse their systems, missing opportunities to streamline workflows and boost efficiency. Like any business tool, its value depends on how well it’s used, maintained, and adapted to meet your organization’s evolving needs.
With the rapid pace of software innovation, shifting business priorities, and changing employee expectations, maximizing your HRIS requires an intentional, ongoing effort. Here’s how you can ensure you’re getting the most out of your investment.
1. Create a Dedicated Team for HRIS Management
To keep your HRIS operating efficiently and delivering value over time, appoint a team to oversee its ongoing use and development. The team could include a System Analyst, Product Owner, or HRIS Director — people with deep knowledge of the system who can monitor performance, plan enhancements, and ensure alignment with organizational goals year-round.
2. Merge and Automate System Workflows
Identify manual processes you could move into the system’s workflows. Automating tasks like onboarding, time tracking, or benefits enrollment reduces administrative overhead and errors while improving the employee experience. Similarly, to enable seamless data flows across platforms, build system integrations to connect your HRIS with other tools, like payroll, performance management, or learning systems.
3. Monitor and Improve Data Quality
Your HRIS is only as good as the data it holds. Employees and managers often update or enter information sporadically, which can lead to inconsistencies or errors. Conduct regular data quality reviews, provide ongoing training, and develop accessible job aids to maintain high-quality data. Accurate data ensures better reporting, compliance and decision-making.
4. Maximize System Usage With Training
Underutilization is a common problem with HRIS solutions. Conduct targeted training sessions or encourage job shadowing opportunities to help your team fully use the system’s features. When employees understand the tools at their disposal, they can work more efficiently and confidently.
5. Regularly Align HRIS Features With Business Needs
As your business grows and evolves, so should your HRIS. Regularly evaluate whether the system’s features still meet the needs of your workforce and align with the company’s strategic goals. For example, does the performance management module measure metrics tied to business outcomes? Are reports providing clear answers to your most critical business questions? Continuously refining the system ensures it remains valuable.
6. Advanced Reporting and Analytics
If you’re only scratching the surface of your reporting capabilities, it’s time to dive deeper. Build custom dashboards or advanced analytics reports to uncover insights that drive better workforce decisions. Strong reporting capabilities can drive better decisions and deliver more value to your organization.
7. Continuously Evaluate the Employee Experience
Your HRIS should enhance the employee experience. Review whether workflows, self-service tools, and features align with employees’ needs and expectations. Are your tools intuitive, accessible and supportive of a positive workplace culture? Investing in your employees’ experience will increase engagement and satisfaction with the system.
By implementing these strategies, you can transform your HRIS into a powerful driver of efficiency, engagement and business value. Whether you’re optimizing an existing system or exploring ways to enhance its impact, a proactive approach will ensure your investment pays off in both the short and long term.
Invest in a Human Resources Information System
Investing in an HRIS is a significant decision, but when thoughtfully selected and implemented, it can unlock transformative benefits for your organization. The right solution streamlines HR processes, enhances employee satisfaction, and supports strategic business goals.
To take advantage of your HRIS investment, you must give it ongoing attention — from improving data quality and integrating workflows to aligning system capabilities with evolving business needs. With a proactive and intentional approach, your HRIS can become a cornerstone of efficiency and growth.
By prioritizing your HRIS’s management, optimization and alignment with business priorities, you’ll position your organization to thrive in a fast-changing workplace environment.
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