HRIS Systems, Explained: How to Maximize ROI

Over time, human resources (HR) has transformed from a largely functional role focused on workforce operations to a strategic business area responsible for nearly every aspect of workforce management and employee experience. As HR’s responsibilities expand, teams face increasing workloads and an abundance of data to process. 

Modern HR technologies such as human resources information systems (HRIS) ease this burden on HR teams. HRIS software helps people teams maintain and utilize personnel data, covering everything from scheduling and performance reviews to employee development. By streamlining and automating key HR processes, tools like HRIS make it possible for HR teams to handle ever-growing to-do lists and are the backbone of HR transformation projects. 

In this article, we will explain the ins and outs of HRIS, and compare them to other critical types of HR software. We’ll show you the top HRIS on the market today and provide some best practices for implementing an effective HRIS for your organization.

HRIS vs HRMS vs HCM – What’s the Difference?

Various tools and solutions are available to HR teams, each designed to address specific needs. Many of these are centralized hubs for HR activities, including HRIS, HRMS, and HCM. While each system has unique functions, their names tend to be used interchangeably, leading to confusion. Here are the commonly held definitions for each: 

• Human Resource Information System (HRIS): A software for storing and managing employee data, such as contact information, demographics, and compensation. HRIS solutions typically include various features related to employee data management including recruiting, employee onboarding, performance management, and HR analytics reporting. HRIS is often a more data-focused component of an organization’s larger human resources management solution. 
• Human Resource Management System (HRMS): A solution that allows HR professionals to conduct various HR activities including payroll and benefits, talent management, and hiring processes. HRMS is often a more focused component of an organization’s human resources management plan.
• Human Capital Management (HCM): A centralized system that incorporates HRIS and HRMS functionalities in addition to employee experience and other HR activities. These software often use cloud computing for optimal scalability.

Key Capabilities and Functions of HRIS

Here are the key functions of an HRIS software.

• Employee data management: A centralized platform for storing, using, and interpreting employee data. HRIS often consolidates data for each employee into comprehensive profiles which can be updated by HR teams as well as the team members themselves.
• Recruitment and onboarding: Easy-to-use tools for seeking out high-quality candidates, and managing hiring and onboarding processes. 
• Time and attendance tracking: From scheduling tools to time tracking to attendance data, HRIS can reveal trends among individuals and teams and alert management to issues as they arise. 
• Performance and talent management: Many HRIS include tools for conducting performance reviews, tracking goals, and monitoring team success to help managers understand performance quickly and establish effective succession planning strategies.
• Payroll & benefits administration: Automated payroll processing tools, tax filing features, and benefits administration tools to facilitate some of the more complicated and tedious tasks.
• HR analytics and people reporting: Tools for tracking and interpreting other HR data such as hiring plans, compliance reports, and KPIs.

How HRIS Drives Business Outcomes

Here’s how an HRIS drives business outcomes:

• Drives efficiency gains by automating common HR processes and workflows. Frees up HR employees to focus on projects and resolving larger-scale issues. 
• Improves compliance and reduces risk through detailed reporting, time management tools, and automation of compliance tasks, facilitating compliance monitoring across the entire workforce.
• Enables data-driven decision-making by centralizing HR data management tools to provide HR leaders with all of the information they need to make informed decisions for employees and the larger organization. 
• Enhances employee experience by facilitating hiring and onboarding, simplifying scheduling and tracking, and providing self-service access that give employees a sense of comfort and visibility.
• Centralizes recruiting and onboarding processes to facilitate hiring tasks and bring in effective hires to build strong teams and maintain consistent and fair hiring practices.

How AI in Transforming HRIS

Integrating artificial intelligence (AI) into HRIS through machine learning and algorithms gives software systems a human-like ability to make decisions and carry out processes automatically. This advancement is transforming how HR professionals manage their work. 

• AI-powered applicant tracking system capabilities: AI streamlines and optimizes traditionally tedious hiring tasks like applicant shortlisting, interview scheduling, and job description writing. By improving these processes, a modern HRIS helps HR teams reduce bias and develop candidate pipelines bursting with high-quality candidates. 
• Adaptive learning experiences and personalized onboarding: With AI, teams can use HR software to develop and deploy personalized learning experiences and training materials based on role and user behavior. This bespoke approach to workplace learning reduces HR teams’ workload while improving learning outcomes, leading to higher knowledge retention and more productive employees. 
• Digital assistants and chatbots to support employees: As AI has improved, many HRIS applications have incorporated smart digital assistants and chatbots to help guide HR teams and end users through HR software. Combining this type of interactive support with self-service knowledge bases helps provide employees across the organization with relevant support in the moment of need without overburdening HR or IT teams.
• HR data analysis and predictive analytics: Incorporating AI into HRIS analytics features automates the reporting process and delivers critical workforce insights to HR leaders. This helps HR teams better understand employee needs and continually improve support efforts.

Case Study: How IBM Incorporated AI into Its HRIS

IBM is a spectacular example of the successful implementation of AI into HR technology and processes to enhance performance. The global industrial research organization has built tools like IBM Watsonx, a portfolio of AI tools designed to optimize workforces.  

In an internal case study, the IBM Smarter Workforce Institute conducted interviews with Senior HR executives about their experience integrating AI into HR processes at IBM. They reported benefits in just about every corner of the employee experience. 

IBM leaders say incorporating an AI-powered Watson Candidate Assistant into talent searches increased applicant volumes, engaged job seekers for a personalized experience, and led to stronger talent funnels. They developed the IBM Watson Recruitment system, using AI workforce planning, finding that it helped HR teams expedite and improve the hiring experience and improved the hiring experience for both applicants and recruiters. 

They also used AI to alert managers of changes in employee performance, make compensation decisions, personalize L&D programming, and perform skills gap assessments. As a result, IBM has become a pioneer in the AI optimization of HR processes. 

“AI is an accelerator – it allows us the ability to ingest a variety of data and provide context to a decision maker or employee or business leader. It allows us to deliver the right intelligence in the moment and achieve personalization at scale.” – Tom Stachura, Vice President of Talent Solutions & People Analytics, IBM

Best Human Resources Information Software

There are many different HRIS solutions on the market today, each with features as unique as the companies that use them. We’ve broken our best HRIS list into two segments:

• Best HRIS Software for Enterprises and Large Organizations
• Best HRIS Software for SMBs

Best HRIS Software for Enterprises

1. Workday
2. SAP SuccessFactors
3. Oracle HCM Cloud
4. ADP Workforce Now
5. UKG Pro

1. Workday

G2 rating: 4.1/5

Pricing: Contact Workday for a custom Quote

Workday is the largest HRIS provider and has several HR-centered products that use AI to improve organizations’ talent strategies and employee experience. This includes key HRIS features like succession planning, employee engagement, and analysis of employee performance analytics. Workday’s robust analytics, cloud-based architecture, and focus on AI make it a powerful toolset for large and growing organizations. This solution is trusted by over 10,000 companies worldwide for managing HR activities from a centralized platform. Workday is well-suited for enterprise companies with more complex operations. 

Key Features:

• Core HR management tools
• Talent management
• Data Analytics
• Intelligent Automation

2. SAP SuccessFactors

G2 rating: 3.9/5

Pricing: Contact SAP for a custom quote

Another widely used HR solution is SAP SuccessFactors. This cloud-based HCM has powerful HRIS features incorporating AI to optimize HR activities and employee experience. This solution includes features spanning HR activities throughout the employee life cycle. SAP SuccessFactors includes modules for core functions like payroll, talent management, workforce planning, and powerful analytics for improved decision-making. It also has robust global capabilities facilitating compliance monitoring for over 100 countries. 

Key Features:

• Workforce Management Tools
• Employee self-service
• Attendance and Scheduling
• Global benefits administration and compliance tools

3. Oracle HCM Cloud

G2 rating: 3.5/5

Pricing: Contact Oracle for a custom quote

Oracle HCM is another leader in the HR software industry. This unified, cloud-based solution to human capital management has AI embedded throughout for a seamless HCM experience. Oracle’s custom AI models can be trained on organization-specific data for ultra-customized support and enhanced decision-making. This solution includes tools for HR, talent management, workforce management, payroll, and people analytics. It also has global payroll tools with built-in compliance, making it an effective solution for large-scale and international enterprises.

Key Features:

• Core HR management tools
• Global compliance
• Employee self-service
• Oracle Mobile App

4. ADP Workforce Now

G2 rating: 4.1/5

Pricing: Contact ADP for a custom quote

ADP Workforce Now is an all-in-one HR platform that helps teams manage payroll, time, benefits, and talent.  This popular HR software is easy to use and has a flexible architecture that helps enterprises build solutions to fit their unique HRIS needs. One key feature of ADP WorkforceNow is its integrated payroll and time-tracking capabilities, bolstered by ADP’s reputation as a leading payroll software company. This solution also has a robust analytics module, which allows HR leaders to compare performance with benchmarking data from over 40 million employees for solidly validated data insights. 

Key Features:

• Core HR management features
• Emplyee self-service
• Advanced reporting tools
• Compliance support

5. UKG Pro

G2 rating: 4.2/5

Pricing: contact UKG for a custom quote

UKG Pro is UKG’s HCM software built for enterprise companies.  This solution incorporates AI to provide intuitive experiences, proactive support, and automation of HR tasks like managing personnel data, payroll, scheduling, and hiring. This comprehensive HRIS has modules for talent management, payroll, employee self-service, and reporting to meet wide-ranging HR needs. UKG offers unique HRIS products for SMBs and a standalone workforce management solution.

Key Features:

• Core HR management features
• Employee self-service
• BryteAI
• Advanced platform security

Best HRIS Software for SMBs

1. BambooHR
2. Gusto
3. Trinet HR
4. Rippling
5. Namely

1. BambooHR

G2 rating: 4.2/5

Pricing: Contact BambooHR for a custom quote

BambooHR is a comprehensive HR platform with solutions for essential HR activities. The core plan includes essential hiring and onboarding,  EX, and reporting features. The Pro plan includes more job postings, plus performance management and employee community tools. Time tracking, benefits administration, and payroll tools can be purchased a la carte as add-ons. 

Key Features:

• Customizable solutions
• Employee community and rewards tools
• Proactive onboarding tasks
• Pre-built integrations

2. Gusto

G2 rating: 4.5/5

Pricing: Plus plan including HRIS features costs $60/month, plus $9/user/month 

Gusto is an HCM that caters directly to small and medium-sized businesses. This solution includes key HRIS features including hiring, payroll, benefits administration, and HR management. Gusto also offers remote HR services and other tools to facilitate HR management for remote teams. Gusto’s focus on small businesses allows for custom solutions. They offer unique HCM configurations for organizations of different sizes and in different industries.  

Key Features:

• Global payroll
• Remote HR support
• Employee Self Service
• Mobile App

3. Trinet HR

G2 rating: 3.9/5

Pricing: Contact Trinet for a custom quote

Trinet offers two different HR management solutions, Trinet professional employer organization (PEO) and HR Plus (formerly Zenefits).  Trinet PEO is a full-service HR platform that integrates HRIS features with expert support. HR Plus includes outsourced HR services including payroll processing and payroll tax compliance. 

Key features: 

• Direct access to HR experts
• Desktop and mobile applications
• Compliance and risk mitigation
• Industry-focused solutions

4. Rippling

G2 rating: 4.8/5

Pricing: Contact Rippling for a custom quote

Rippling is a workforce management software company with solutions for HR, IT, and finance. Rippling HCM includes HRIS features that automate HR tasks like onboarding and workforce planning. The Ripple Platform features comprehensive employee profiles called Employee Graphs, which compile employees’ data from various business systems so HR managers can access information about PTO, training progress, and compensation from a centralized location.

Key Features:

• Core HRIS features
• Workflow Studio
• Role-based policies and approval management
• Employee Graphs
• Mobile App

5. Namely

G2 rating: 3.9/5

Pricing: Starts at $9/user/month

Namely is an HR platform that caters to SMBs. Its core platform covers key HRIS areas like HR, onboarding, payroll, time, and reporting. This solution is designed to be flexible to meet the unique needs of SMBs, including an open API and a wide-spanning network of partners. Namely also offers add-on managed services for benefits administration, performance management, and applicant tracking. 

Key Features:

• Employee self-service
• Global capabilities
• Open API
• Mobile app

6 Steps for a Successful HRIS Implementation

HR leaders need a thorough plan for HRIS purchase and HCM implementation to ensure speedy software adoption and maximize the return on investment. Here are six steps to help you start developing your HRIS implementation plan:

1. Assess business needs

Begin by establishing specific objectives for your HRIS. Start by asking the simple question: Why do we need this? Pull together HR data, consult employee feedback, and assess your existing HR technology and workflows to better understand what is working well and what challenges need to be resolved. 

Consider how your existing HR technology stack and practices align with larger business objectives. Determine whether your existing systems can adequately scale as your organization grows and look into ways you can expand your current technology solutions to include HRIS capabilities. 

During this process, it will be helpful to use your findings as benchmarks and KPIs to refer to throughout the HRIS implementation process. 

2. Secure leadership buy-in and budget approval

Before completely diving into the search for new HRIS software, determine the budget for your new software, including all associated costs. Once you have this information, you can meet with company executives and other key stakeholders to seek project approval. 

Come ready with a clear presentation conveying the benefits of HRIS software and projected return on investment specifically for your company. Communicating with stakeholders early and often and keeping everybody on the same page will minimize friction throughout this process and set a solid foundation for change management. 

3. Research HRIS vendors and create a shortlist 

Once you have approval, it’s time to research options. Compile a list of possible solutions, comparing their features, integration, and pricing to your established business needs and project budget. Consider scalability, especially if your company is growing. 

Weed out solutions that don’t meet these needs and return to stakeholders with a shortlist of the best possible options for your company. Give them time to sort through your research before coming together to discuss options, get feedback, and ultimately make an informed purchase decision. 

4. Develop an HRIS implementation plan

Prepare for implementation by developing a rollout strategy that will help ease your HR team and workforce through this transition. You will likely need to coordinate with IT for assistance with some of the more technical aspects of your plan. 

On the tech side, your plan will need to include the process of data migration from existing HR software into the new system, designing HRIS tasks and workflows, and integrating your new system with your company’s remaining HR tech stack. On the workforce side, your plan should cover plans for company-wide communication and feedback opportunities related to the new software, user acceptance testing, and a thorough plan for software onboarding and training. 

5. Prepare for your HRIS launch

With your implementation plan in hand, establish an additional support team of internal HR experts, IT gurus, and executive stakeholders to assist throughout the implementation process. Digital solutions can also provide virtual assistance to help employees acclimate to the new software. 

Because many HRIS vendors have employee self-service features, employing a digital adoption platform (DAP) like Whatfix will likely be efficient in helping HR team members and end-user employees learn how to navigate your new HRIS. In fact, IDC’s Future of Work report predicted that by 2027, 80% of G1000 organizations will use a DAP to enable employees and maximize technology usage.

DAPs deliver personalized, relevant in-app training and support information to users, embedded within their daily workflows and tasks. This accelerates the time to adoption, accelerates value realization for HR transformation projects, and maximizes HRIS usage.

With Whatfix DAP, enable your workforce with in-app guidance and support HRIS end-users in the flow of work. This includes:

• Task Lists to accelerate HRIS adoption and familiar new users with its UI and workflows.
• Flows to guide users step-by-step through complex workflows or infrequently done tasks (like performance reviews or benefits enrollment).
• Smart Tips to nudge users to take specific action or provide contextual reminders.
• Field Validations to ensure end-users enter data in the correct format.
• Self Help integrates with your company knowledge repositories, enabling end-users to find documentation, SOPs, and policies in a self-help resource center.

Here are a few organizations enabling their HR technology with Whatfix DAP:

• Sentry Insurance drives the adoption of Workday HCM with Whatfix, accelerating time-to-proficiency for new HR admins and enabling end-users with frictionless HR services.
• Manpower accelerates its Bullhorn ATS transformation and enables new recruiters with in-app guidance and support in the flow of work via Whatfix DAP Flows and Self Help.
• OMRON improves the expense management process for its workforce, reducing expensive claims rejections and deflecting IT support issues via moment-of-need guidance. 

Explore Whatfix DAP →

6. Continuously optimize your HRIS experience 

The process continues even after your HRIS is up and running. Upon launch, track HRIS adoption and project success according to your established benchmarks. Continually collect HRIS end-user feedback and use it to resolve systemic HRIS problems that arise. 

Your HR team can ensure a more successful rollout with minimal user friction by providing proactive support and continuous process optimization. Whatfix also offers a robust product analytics solution that integrates into your new HRIS to track user behavior and provide insights for optimal HRIS operation and adoption. 

Does Your Organization Need an HRIS Analyst?

An HRIS analyst is an HR team member focused on working with employee data within an organization’s HR software and systems. They manage data like payroll information, time-off records, and other employee data to improve HR processes and long-term strategies. They are the team experts on employee data and HRIS tools. 

The need for HRIS analysts is growing as more organizations adopt digital HR software to facilitate increasingly complicated employee datasets. This position is becoming especially common among larger companies with more expansive and diverse workforces. 

If you are looking to hire an HRIS analyst for your organization, here are a few things to consider:

What Does an HRIS Analyst Do?

• HRIS software management and optimization: HRIS analysts maintain and update records, deploy system updates, and implement process and policy changes to optimize HRIS use.
• Data management and reporting: They also conduct audits, clean data, establish data governance practices, and analyze employee data to provide insights CHROs can use to make more informed HR decisions. 
• Troubleshooting and system support: HRIS analysts serve as IT experts when supporting employees as they use the software. 
• HR technology strategy: As the authorities on HRIS and team-member data, HRIS analysts track industry trends and organizational needs to guide their companies’ HR tech strategies.

HRIS Analyst Salary & Career Growth

According to salary.com, the median annual salary for HRIS analysts is about $124,000, ranging from about $100,000 to $150,000 per year. Salaries, of course, vary based on the employee’s experience, education level, and other qualifications, as well as the organization’s physical location. 

HRIS analysts often report to HRIS or HR managers who oversee HR activities at a larger scale. Effective HRIS analysts often grow into these positions.

HRIS Analyst Certifications

• Certified HRIS Professional (HRIP): this certification is awarded by the International Association for Human Resource Information Management.  It establishes the individuals who possess it as industry leaders with expertise in current HRIS trends and best practices. To acquire the HRIP certification, professionals need to take an exam, which must be renewed every three years. 
• SHRM-SCP or PHR/SPHR: These certificates are for HR professionals developing and executing integrated HR policies and procedures. The Society for Human Resource Management awards the SHRM-SCP (Senior Certified Professional) certification. The Professional in Human Resources (PHR) certification is for HR practitioners who focus on everyday HR operations, managing employee experience and talent pipelines. The Senior Professional in Human Resources (SPHR) certification is for HR leaders who oversee big-picture HR projects, like chief HR officers. These certifications are granted by the Human Resource Certification Institute (HRCI).
• Vendor-Specific Certifications: Depending on the specific HRIS system an organization uses, HRIS analysts can pursue various other certifications. HRIS and HCM vendors like Workday and ADP offer their certification systems to help HR professionals become subject matter experts and stay ahead of industry trends.

HRIS Clicks Better With Whatfix

Implementing an HRIS is just the first step to optimizing your organization’s use of HR data. Driving the adoption of your new HRIS is the key to ensuring employees can navigate the system and complete tasks efficiently to bring real value. 

As CHROs look to streamline HR processes, reduce administrative burden, and enhance the employee experience, Whatfix provides the solutions to drive HRIS adoption and maximize its ROI.  Whatfix DAP, Mirror, and Product Analytics provide the tools to ensure seamless HRIS adoption and maximum ROI – let’s explore each below:

Accelerate HRIS Testing & Training with Whatfix Mirror

Before launching a new HRIS or rolling out major updates, HR leaders can use Whatfix Mirror to create a sandbox environment where employees can explore the system without real-world consequences. This risk-free, interactive space supports:

• User Acceptance Testing (UAT): Gather real-time feedback from employees before going live.
• Beta Testing: Identify usability issues early by simulating real HRIS workflows.
• End-User Training: Provide a hands-on experience before employees begin working with the live system.

Guide & Support Employees in the Flow of Work with Whatfix DAP

Once your HRIS is live, Whatfix DAP ensures that employees can efficiently navigate the system with:

• Guided Onboarding & Training: Use Task Lists and Tours to onboard employees and introduce them to key HRIS features.
• In-App Assistance: Flows walk employees through complex HR tasks, from performance reviews to benefits enrollment.
• Contextual Support: Smart Tips provide field-level guidance, reducing data entry errors and confusion.
• Self-Help Integration: Connect your knowledge base, policy documents, and HR support to create a seamless in-app assistance system.
• Real-Time Communication: Use Pop-Ups to announce deadlines, policy changes, or critical HRIS tasks employees must complete.
• Employee Feedback Collection: Deploy in-app surveys to gather insights into HRIS usability and employee needs.

Measure, Analyze, and Optimize HRIS Adoption with Whatfix Product Analytics

Without visibility into how employees engage with the HRIS, it’s impossible to optimize adoption. Whatfix Product Analytics enables HR leaders to:

• Track HRIS engagement & usage patterns to identify where employees struggle.
• Pinpoint friction areas where tasks take too long or have high drop-off rates.
• Leverage insights to refine HRIS workflows and deploy targeted in-app guidance with Whatfix DAP.

Unlock the Full Potential of Your HRIS with Whatfix

An HRIS is only as valuable as its adoption. With Whatfix, CHROs can ensure employees use the HRIS effectively — reducing HR support tickets, improving compliance, and maximizing efficiency.

HRIS systems click better with Whatfix. Request a demo today!