HRIS basics

What Is an HRIS? A Plain Guide for Small Business

HRIS means human resources information system. Here is what one does, how it differs from payroll and an ATS, and when a small business needs one.

Guide5 min readBy HRGP TeamPublished Updated

An HRIS is software that keeps your employee information and HR paperwork in one place. HRIS stands for human resources information system. At a small business, it replaces the mix of folders, inboxes and spreadsheets that most owners use to keep track of their people.

You may also hear it called HR software or employee management software. The names overlap. What matters is which jobs it takes off your desk.

What HRIS means, in plain words

Think about everything you need to know about one employee: their job, their manager, their start date, their I-9 and W-4, their time off, their benefits. Now think about where each of those lives today.

An HRIS brings them together into one record for each person. Anyone with the right access can find what they need without asking you, and you can see what's missing without digging.

What an HRIS usually does

Products differ, but most cover some or all of these:

  • Employee records. Job details, position history, contact details and files.
  • Onboarding. New-hire forms and a checklist for the first days.
  • Time off. Policies, balances, requests and approvals.
  • Benefits. Plans, enrollment and who is covered.
  • Self-service. A portal where employees see their own information.
  • Reports. Answers about headcount, hours, turnover and more.
  • Hiring. Some include applicant tracking, so a hire's record starts when they apply.

What an HRIS usually doesn't do

An HRIS doesn't make HR decisions for you. It won't decide who to hire, write your policies or give you legal advice.

Many also don't pay people. Paying employees and filing payroll taxes is the job of a payroll processor. Some products bundle the two, so always ask. Our guide to HRIS vs payroll explains the difference.

HRIS, HRMS, HCM and ATS

These letters confuse everyone, and companies use them differently. As a rough guide:

  • HRIS: keeps employee records and HR work in one system.
  • HRMS: human resources management system. Often used to mean the same thing as an HRIS.
  • HCM: human capital management. Usually a bigger suite for larger companies.
  • ATS: applicant tracking system. Focuses on hiring, up to the point someone is hired. See HRIS vs ATS.

Don't choose by the label. Ask each company what its product does for your jobs.

Do you need an HRIS?

Maybe not yet. If you have a handful of people, little turnover and one person who knows where everything is, a good folder system may be fine.

Here are signs it's time to look:

  • You can't quickly say which new hires still owe you forms.
  • Time off lives in a text thread or on a wall calendar.
  • Employee files sit in a shared folder that too many people can open.
  • You type the same new-hire details into two or three places.
  • Employees ask you the same questions every week.
  • More than one person hires, and nobody can see what the others did.
  • You've lost a good person and didn't see it coming.

How to get organized, with or without one

Software works best when you already know your process. These steps help either way:

  1. List your people. Name, job, manager, start date and contact details, in one sheet.
  2. List your paperwork. What every employee must have on file, and who owns each item.
  3. Write down your time off rules. How it's earned, how it's requested and who approves it.
  4. Decide who can see what. Pay details and personal numbers should stay with very few people.
  5. Pick one place. Whatever you use, make it the only place people look.

That sheet is also a good start if you move to software later. In HRGP, you can import people from a spreadsheet.

How HRGP does it

HRGP is the HRIS for small business, from the first applicant through payroll. Your payroll processor pays your people and files the taxes. HRGP handles the rest: the records, the documents and the reports.

It includes applicant tracking, onboarding, employee records, time off, benefits, My Employee Portal and a payroll file for your payroll company. Onboarding and payroll preparation are for US businesses.

It costs one flat $99 a month with no per-seat fees, plus a 14-day free trial. See HRGP as an HRIS, or use our buying checklist to compare it with anything else.

Common questions about HRIS software

What does HRIS stand for?

HRIS stands for human resources information system. It's software that keeps employee information and HR paperwork in one place.

Is an HRIS the same as payroll software?

No. Payroll software works out pay, pays people and handles payroll taxes. An HRIS keeps the employee records and HR work around that. Some products do both, and some, like HRGP, work alongside your payroll company.

How many employees do you need before an HRIS makes sense?

There's no magic number. Look at the problems you have, not your headcount. A business with 12 people, two managers and a lot of turnover may need one more than a steady business with 30.

Does an HRIS keep me compliant with employment law?

No software can promise that. An HRIS can keep forms, dates and records organized, which helps. You're still responsible for following the rules where you operate, so ask a lawyer about anything specific.

How much does an HRIS cost?

It varies. Many are priced per employee, per month, and some have setup fees. Work out the cost at your headcount today and as you grow. HRGP is one flat $99 a month with no per-seat fees.

One place for your people

Keep the work connected, from applicant through payroll

HRGP is the HRIS for small business. It keeps applicants, messages, interviews, onboarding, employee records and payroll preparation together in one system. Your payroll processor pays your people and files the taxes, and employers make the final hiring decisions.

See the HRIS