Understanding HRIS: The Progression of Human Resource Information System

The rapid advancement of technology over the past years has provided a lot of perks for various sectors, especially in the business industry. Modern technology has made it possible to create an interactive, real-time, information-based, and self-service environment. 

Along with technological evolution, employee Information Systems have transformed from automated employee record keeping in the 1960s to more complex reporting and decision-making systems. Furthermore, with the aid of Human Resource Information Systems (HRIS), there has been a dramatic increase in the number of organizations that have acquired, stored, analyzed, and used human resources data over recent years. 

Today, small-to-medium-sized businesses (SMEs) in the Philippines expect a better year beginning in 2022. According to the Sun Life Business Growth and Resilience Index, approximately 2,400 SME owners in the Philippines, as well as its neighboring countries, were surveyed in late 2021. 70% of respondents expected improvements in the country’s economy, while 74% expected their business to have a better financial position. 

About 30% of the 84% of SMEs that plan to grow or expand their businesses will digitalize their business. The role of the payroll software and human resources information system (HRIS) is crucial in this digitalization.

But where did HRIS commence, and how can its modern features help lift your business’s status in the Philippines?

HR software companies in the Philippines

The emergence of HRIS

The history of HRIS began with payroll systems in the 1950s. It continued to the 1960s, when the first automated employee data were used.

The core functions of the organization, which include operations, marketing, finance, and accounting, were then separated from human resources management.

Big corporations needed to centralize large amounts of their human resources data in the 1960s and 1970s to meet record-keeping requirements and other regulations. Human resource departments then use more powerful and low-cost technologies, systems, and programs to increase the efficiency and effectiveness of service delivery; one of these systems is Enterprise Resource Planning (ERP). ERP systems evolved throughout the 1990s.

The popularity of ERP applications and the shift from mainframe systems into client-server technology has led to the creation of the Human Resources Information System (HRIS), also known as the Human Resources Management System (HRMS).

HRIS Providing Greater Functions

HRIS has evolved from simple accounting tools to more complex analytical systems that support decision-making in management. Due to the shortage of skilled labor — especially in the technology sector — during the 1980s, HRIS has long been more than a foundation for competency management. It is now a tool to improve employee productivity and satisfaction. 

HRIS software continue to widen their range of capabilities and functional features to help workers attract, retain, and reward them appropriately in the 1980s. And the following years, HR departments started using ERP or web-based systems in the mid-1990s to accomplish many of their core goals, including training, selection, and compensation.

As the HR software industry expanded in the 2000s, HRIS now includes benefits management, payroll software, compensation, learning management, and expense reporting. 

Now HRIS makes data accessible and automates manual processes. This frees up time and resources for the more rewarding parts of the job, which is developing people. With the expanding functions of HRIS, employees find their lives easier and feel more connected and engaged.

Perks of Outsourcing Human Resource Functions in the Philippines

With its growing trend, more and more companies in the Philippines are considering outsourcing their HR functions. If you’re looking for the right HR software companies in the Philippines, better start by checking out below what makes a reliable human resource management system:

  • Credible and High-functioning Workforce

Being an excellent human resource management worker means being able to perform with patience, persistence, and precision. 

When searching for the right HRIS in the Philippines, it is proven that credibility and quality services are vital factors. With a highly educated workforce, the quality of work is not compromised. They can adapt to different cultures and have a great deal of flexibility. Outsourcing professionals also have a remarkable work ethic in customer support, human resources management, or IT operations.

  • Provides Great Performance Strategies

The human resource management department is responsible for measuring work efficiency and designing a performance-management strategy (PMS) accordingly. This helps employees feel more accomplished and is a way to reward them for their efforts. This approach will not only ensure maximum brilliance but also improve work efficiency.

The human resource management department could also assist them in improving their skills and encouraging them to excel at all tasks. They will always be open to receiving well-deserved recognition and appreciation. The HRM department has the most powerful tool: an effective PMS.

  • Secures Employee Data with the Best Payroll Software

A reliable human resource information system (HRIS) should provide a single source for employee information. This will help you avoid manual data entry when you use payroll and HR tools. 

The right HRIS can manage and dispose of sensitive data in various ways. They can restrict access to HR databases and determine which information will only be available to the HR custodian. It is essential not to overlook electronic access. Furthermore, firewalls may also be used to secure applications, servers, or databases to protect digital portals.

HRIS Improving the Payroll System of Businesses in the Philippines

Tax annualization is an essential process you must complete for the benefit of your company and your employees, especially in the Philippines. You must ensure that your employees pay the correct tax as an employer. 

You don’t want to end with the Bureau of Internal Revenue (BIR) to be breathing down your neck, so why settle for less if you can look for a reliable and efficient payroll system?

A Payroll System also offers Audit Tracking and Accountability

Imagine an employee being incorrectly paid for overtime of 20 hours, only to discover that their overtime was not approved. Or someone’s salary suddenly increased by 20% while it should only have been 5%.

It can be challenging for Philippines payroll workers to track who is responsible for changes or errors.

Apart from providing the best payroll package software, the payroll system allows you to track data changes, including who changed which record and the actual changes. An excellent payroll system can also track who accessed it and from what computer. This allows fraud prevention and holds everyone responsible for their actions.

Audit tracking allows you to see when and where a record was created. It also shows who created it, when it expired, who approved it, and who cancelled it. In addition, you can see who approved requests for overtime or leave and modified a person’s salary. A good payroll system allows you to keep track of everything and identify who was responsible.

Good HR software will also help your staff keep up to date with their workload and efficiently manage paperwork. Not only will it save time and money managing payroll but automating routine tasks can also help employees address their concerns instead of primarily focusing on administrative tasks.

An organization must have an automated and streamlined process to manage employee data and comply with privacy rules. Fortunately, many technological options are available to meet the increasing demands for global privacy standards, just like GreatDay HR’s program.

A brilliant, modern, all-in-one HR/Payroll software platform such as GreatDay HR allows attendance, timekeeping, payroll, and employee data management. We will provide all the support you require. All the information you need is available at your fingertips, anytime and anywhere.

GreatDay HR is more than just security. This payroll software offers a wide range of functionality and convenience. GreatDay HR allows workers to correct errors in their employee profiles, reducing the time required. In addition to the standard employee fields, ten additional data fields can be configured. The Announcement tool by GreatDay HR allows the firm to quickly inform all employees about company successes, rules, and information.

Feel free to visit info@greatdayhr.ph and explore more about how they can help your business prosper in the future.

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