There are five main types of HRIS systems: operational, strategic, tactical, comprehensive, and limited-function.
Each type of HRIS system is designed to meet specific human resource management needs, and different companies will benefit from different types of HRIS software.
What is HRIS?
Human resource information systems (HRIS) are centralized repositories for employee data. They are designed to help HR teams streamline and automate a variety of functions, from core HR tasks like payroll to more nuanced processes like performance management.
In some cases, an HRIS is made up of multiple subsystems that work together to create a holistic view of an organization’s workforce. In other cases, an HRIS is a specialized, stand-alone tool that leverages one or two subsystems. In either case, an HR consultant can help you determine which type of HRIS is best for your business, based on your HR needs, goals, and priorities.
5 Types of HRIS and Their Uses
All human resource information systems are divided into five main types based on function or scope:
- HRIS operational
- Strategic HRIS
- Tactical HRIS
- HRIS collector
- With limited/specialized HRIS functionality
Both limited and comprehensive HRIS solutions may accommodate different amounts of data types that fall into three different functional types of information systems.
1. Operational HRIS
The operational HRIS category includes tools that help HR staff and people managers with hiring, promotion, transfer, and other talent management needs. Operational HRIS solutions focus on improving existing systems by making them more efficient and effective.
Applicant Tracking System (ATS)
An applicant tracking system (ATS) records all open positions in an organization and optimizes workflow to fill them as quickly as possible. ATS functions include sending job postings to multiple job boards, screening applications to identify qualified candidates, and identifying bottlenecks in the hiring process.
Performance Management System
A performance management system stores employee information about performance evaluations. It supports employee retention, promotions, transfers, job rotation, termination needs, and other talent management concerns. A performance management system helps managers take action if an employee is underperforming or needs additional support.
2. Strategic HRIS modules and functions
In strategic HRIS systems, it helps with analysis, decision-making, and goal-setting related to human capital management. Strategic HRIS solutions often help companies with specialized recruiting needs find – and retain – the right talent.
Workforce planning
Workforce planning tools help HR teams identify the background and skills, responsibilities, reporting structure, and compensation required for each specific role. This functionality helps develop strategies to fill skills and role gaps in the current workforce, which has downstream implications for hiring strategies as well as learning and development programs.
Learning Management System
A learning management system (LMS) supports succession planning as operational decisions are made about job rotation or promotion. It tracks employee skill sets across the company and identifies employees who are ready to pursue additional training or certifications based on recent changes in their roles or responsibilities.
3. Tactical HRIS
The tactical HRIS category targets efficiency and compliance for internal workforce management. The tools and functions that fall into this category help HR leaders make decisions about how to best utilize available resources for functions such as compensation, recruiting, training, and benefits.
External data aggregation
Tactical HR modules collect external data related to a business’s competitors, industry, and compliance requirements. For example, Deel tracks compensation data in international markets to determine whether the proposed pay rate is higher, lower, or in line with similar roles in a particular geographic region.
Benefits Management System
Payroll and benefits management impact the employee experience and are two of the largest business costs; therefore, company leaders have a vested interest in regularly reviewing the organization’s benefits package as part of total employee compensation. If HRIS indicates that a particular benefit is underutilized among employees, HR leaders may need to remind employees about the benefit or decide to invest in another benefit instead.
4. HRIS collector
As the name suggests, a comprehensive HR information system acts as a one-stop shop for storing the information needed to perform almost all HR management functions. It acts as a central repository for a wider range of data that supports operational, strategic, and tactical HR functions in a combined manner.
These three functions do not operate in a vacuum. Rather, they influence each other in various ways. For example, information about where a role fits in the reporting structure and how it contributes to the company’s goals is both operational and strategic in job analysis and design.
It makes sense for larger businesses to use a comprehensive HRIS because it integrates data across all three types of functional systems. This information provides valuable insight so that HR and business managers can quickly make informed decisions. Conversely, if the business has specific tactical needs that cannot be addressed by any integrated solution, a limited-scope information system—whether purchased or used for limited purposes—may be a worthwhile investment.
On the other hand, smaller businesses may want a simple HRIS platform that only addresses basic HR management needs such as payroll. In this case, implementing and maintaining a comprehensive HRIS can be overwhelming. The higher cost also puts full-featured HR suites out of reach for many small business budgets.
5. HRIS with limited or specialized scope
Unlike a comprehensive HRIS, a limited-function HRIS focuses on one or more core information systems. They typically support a limited list of human resources functions, such as payroll and benefits management.
No matter what HR function a company focuses on with a limited-function HRIS, an employee information system is essential to HR software. It collects, archives, and tracks employees’ personal and professional records, including name, address, minority status, citizenship, education, past work experience, and more.
Limited-function HRIS platforms are often less expensive than comprehensive HRIS solutions, and individual HR professionals can manage this type of software on their own. For these reasons, small companies with lean HR teams may find limited-function HRIS platforms more manageable.
How to choose the right type of HRIS
There are many HRIS solutions that suit a wide range of needs, so trying to find the best fit comes down to two questions: What kind of HRM functions does the business need, and how will it use the data it collects from those processes?
Companies that only need one or two core HR functions should look for a limited or specialized HRIS. These functions require only basic employee information such as name, address, Social Security number, and demographic information. Because these systems are relatively lean, they can often be managed by a small HR team or even an HR manager or HRIS analyst.
As a company and its data grow in both quantity and type, it requires a more comprehensive HRIS platform to effectively and appropriately manage that information. Comprehensive HRIS solutions are typically a larger financial investment, but the efficiency and strategic insight businesses gain by adopting a robust system usually makes the cost worth it.
Aside from performance, businesses should consider their HR priorities when evaluating HRIS platforms. Operational HRIS modules focus on developing a company’s current workforce, while strategic modules support a company’s growth and succession planning efforts, and tactical modules incorporate data to help HR make informed decisions about how to best utilize available resources.
Ultimately, the right type of HRIS depends on the unique needs your company faces now and in the future. Keep these needs in mind as you explore our comprehensive list of solutions in our HR Software Guide.
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