10 best HRIS systems in 2024
Published 8:04 a.m. UTC Jan. 11, 2024
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The best human resources information systems (HRIS) transform a company’s HR operations from a cost center into a revenue generator by attracting, onboarding and engaging the very best candidates for its open positions.
For some firms, the best HRIS option is an all-in-one solution that includes time and attendance tracking, benefits administration and payroll processing. Other companies are better served by an HRIS package that focuses on recruiting, onboarding and managing their employees.
One thing all of the following companies have in common is their potential to help any organization with a workforce run more efficiently while keeping its employees engaged.
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Best HRIS systems in 2024
- Monday HR: Best for customizations and automation.
- ClickUp: Best free HRIS.
- GoCo: Best for creating a custom HRIS bundle.
- Rippling: Best for global organizations.
- 15Five: Best for boosting employee engagement.
- Zenefits: Best for self-onboarding.
- Namely HR: Best all-in-one HR solution.
- SAP SuccessFactors: Best for AI-powered HR features.
- Eddy: Best for recruiting and applicant tracking.
- Papaya: Best for payroll and payment processing.
Why trust our small business experts
Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 25 companies reviewed.
- 20 hours of product testing.
- 1,068 data points analyzed.
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Best HRIS systems comparison
APPLICANT TRACKING | BENEFITS ADMINISTRATION | PAYROLL PROCESSING | TIME AND ATTENDANCE | EMPLOYEE MANAGEMENT | |
---|---|---|---|---|---|
Monday.com
| No
| No
| No
| No
| Yes
|
ClickUp
| No
| No
| No
| No
| Yes
|
GoCo
| Third-party app
| Yes
| Yes
| Yes
| Yes
|
Rippling
| Yes
| Yes
| Yes
| Yes
| Yes
|
15Five
| No
| No
| No
| No
| Yes
|
Zenefits
| Third-party app
| Yes
| Zen plan only
| Yes
| Yes
|
Namely HR
| Third-party app
| Yes
| Yes
| Yes
| Yes
|
SAP SuccessFactors
| Yes
| Yes
| Yes
| Yes
| Yes
|
Eddy
| Yes
| No
| Premium plan only
| Yes
| Yes
|
Papaya
| No
| Health plan only
| Yes
| Yes
| Payroll and compliance only
|
Methodology
We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.
We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint for the best HRIS systems.
The best HRIS systems have applicant tracking features, reviews and employee feedback tools, benefits administration tools, payroll features and time tracking tools. These systems should also help with peer reviews, PTO tracking, e-signatures, contractor payments and software integrations.
These systems should also have lower monthly prices, free versions for your team to test, good customer reviews and a wide variety of features. Some of those features can include alerts and reminders, a reporting dashboard, organizational charts, shift scheduling and custom branding.
What are HRIS systems, and how do they work?
Human resources information systems allow companies to operate more efficiently by automating many standard HR tasks involved in recruiting, onboarding and managing employees. They support a mix of HR operations:
- Benefits administration.
- Time and attendance tracking.
- Payroll processing.
- Managing and securing employee data.
- Employee performance monitoring.
- Employee engagement.
HRIS products include reporting and analytics features that measure various HR-related activities, including:
- Training cost per employee.
- Revenue generation per employee.
- Employee voluntary and involuntary turnover rates.
- Time to recruit new hires.
- Job acceptance rate.
- Absenteeism rate.
- Employee-related risks.
Other aspects of HRIS are employee self-service portals, compensation, workforce planning, learning and development, succession planning and employee experience management.
HRIS systems work by integrating with an organization’s existing business processes and workflows. They combine with ERP systems to unify the business’s data and ensure the accuracy and integrity of the information that employees and managers rely on.
While many HRIS products include payroll processing, benefits administration, time and attendance tracking and other employee-management tasks, others connect with a company’s existing processes in these areas, whether custom-built in-house or purchased from third parties.
Benefits of HRIS systems
Modern businesses of all sizes would find it difficult to function without the assistance of software to support their HR needs, from attracting candidates for open positions to conducting exit interviews for departing employees. These are among the benefits of HRIS systems for SMBs:
- Faster and more accurate HR administration. By automating everyday HR tasks such as application processing and job postings, HRIS solutions improve the productivity of HR staff. Automation also reduces the likelihood of errors occurring from the manual processing of employee and business records.
- Better employee experience. The systems provide portals that save current and potential employees time and effort when accessing their records, reporting their work hours and interacting with HR for other purposes. Workers have ready access to their payroll records, accrued benefits and work reviews.
- Streamlined approval processes. HRIS replaces the email and paper forms many companies rely on to manage approvals for new hires, raises, promotions, schedules, time-off requests and other management tasks that involve HR staff.
- More effective compliance management. The products keep firms up to date on new regulations and court cases related to employee management, including workplace harassment and discrimination, employee privacy and labor laws in various jurisdictions.
- Locking down sensitive employment data. HR departments are caretakers for sensitive employee information, including medical and financial records as well as employee reviews, discipline and attendance. HRIS products centralize and integrate private employee data to allow a single set of security protocols to apply universally.
Who uses HRIS systems?
It’s natural to think of HRIS as the province of large firms that employ a staff of HR professionals. However, the systems are widely used by small business owners who take advantage of their automated tools for job postings, onboarding, payroll processing and benefits management, among other tasks. HRIS products are able to grow along with the company, expanding existing functions and adding new capabilities as its HR needs change over time.
All businesses with a staff of employees or contractors must occasionally deal with worker turnover. HRIS ensures that the termination process goes smoothly and that recruitment and onboarding for replacement workers occur in a timely manner.
In addition to HR staff and the organization’s employees, HRIS systems are used by the finance department for payroll and other purposes, as well as by the IT department to ensure the system is operating as expected, and by the company’s training staff.
How to choose the best HRIS system
HRIS systems should integrate with nearly all of an organization’s work processes, so selecting one for your business starts by examining your existing workflows for recruiting, training, managing and rewarding employees.
Whichever HRIS solution your company chooses will need to be customized to provide only the HR features you need so that you don’t spend more on the product than necessary.
Key features to look for
The basic HR functions that are supported by nearly all HRIS systems include posting jobs to employment sites, finding qualified candidates for open positions, managing job interviews and hiring, training and onboarding, employee performance reviews and employee record management.
Other features, such as benefits administration, payroll processing, time and attendance tracking and employee education and engagement, may be bundled with an HRIS or handled by separate products that connect to your firm’s HRIS.
These are the fundamental capabilities of an HRIS system:
- Secure employee record-keeping. Most HRIS products rely on secure cloud storage for sensitive employee files rather than storing records on a firm’s internal systems.
- Employee self-service. Providing direct access to employee time and attendance records, payroll history, benefits accrual and other work-related information puts workers in control of their data and saves time for HR staff.
- Time and attendance tracking. Keeping an accurate record of employees’ work hours and days off supports payroll and benefits operations while also helping companies confirm that they are complying with all employment-related regulations.
- Training and development. While most training occurs during onboarding, workers must also refresh their existing skills from time to time and acquire new skills in response to new technologies and changes in markets and industries.
- Reporting and analytics. Most HRIS products feature dashboards that offer a composite view of HR operations and include the ability to generate reports on such matters as employee performance, management effectiveness and risk management. Analytics identify trends in the workforce, enhance talent acquisition and development and monitor the firm’s compliance requirements.
Add-ons and extras
HRIS vendors such as Rippling, GoCo, Zenefits, Namely and SAS SuccessFactors combine the standard lineup of HR features with applicant tracking, benefits administration, payroll processing, time and attendance tracking and learning management tools.
Other HRIS products include only the core HR functions and integrate with a business’s existing systems for other features. These vendors include Monday.com. ClickUp, 15Five, Eddy and Papaya.
Choosing between the all-in-one approach to HRIS and the stripped-down systems involves some tradeoffs:
- The complexity of integrating disparate business apps into a coherent and manageable solution.
- The need to avoid paying for more functionality than your business requires.
- The risk of relying on a single vendor for support with planning, implementing, troubleshooting and updating an HRIS upon which so many of your firm’s operations depend.
How much do HRIS systems cost?
LOW-END PLAN | MID-PRICED PLAN | HIGH-END PLAN | ADD-ON SERVICES | |
---|---|---|---|---|
Monday.com (minimum of three seats)
| $12 per user per month
| $14 per user per month
| $24 per user per month
| None
|
ClickUp
| $0 per month
| $10 per user per month
| $19 per user per month
| ClickUp AI: $5 per user per month
|
15Five (annual contracts only)
| $4 per user per month
| $10 per user per month
| $16 per user per month
| Transform: $99 per manager
Transform Accelerator: $220 per manager
|
Zenefits
| $10 per user per month
| $20 per user per month
| $33 per user per month
| Payroll: $6 per employee
Benefits Admin: $5 per employee
|
Papaya
| $3 per user per month
| $12 per user per month
| $150 per location
| Contractor Management: $2 per contractor
Employer of Record: $650 per employee
|
One of the greatest challenges in shopping for an HRIS system is determining how much the product will cost. HRIS plans are priced per employee (or seat) per month. However, several of the vendors in our review list only the starting price for their least-expensive option and require that potential customers sign up for a demo to receive a custom quote. These include GoCo, Rippling, Namely, SAP SuccessFactors and Eddy.
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Frequently asked questions (FAQs)
Implementing a HRIS takes time and planning because the products interact with nearly every work process at your company, from finding and onboarding staff to measuring the firm’s overall performance. Eddy outlines an eight-step approach to implementing an HRIS system:
- Determine your business’s needs. Department leaders and managers meet to consider what HRIS features they need to achieve the company’s short-term and long-term goals. Potential HRIS components include recruiting, training and education, employee performance measurement, benefits administration, payroll and employee self-service.
- Define the scope of the implementation project. The process will likely require support from the IT department, choosing between a hosted or on-premise HRIS solution and the project’s time constraints.
- Choose project committee members. Members will include HR managers, representatives from the firm’s finance, training and IT operations and line-of-business managers.
- Request proposals and schedule demos. Once you have a solid understanding of the implementation project’s scope and your HRIS needs, contact vendors to gain a clear picture of how well their products match your business’s requirements in terms of features, performance and support.
- Begin the HRIS installation. The time required to complete the implementation will be stated in your service agreement, but your firm will continue to work closely with the vendor through design, testing, configuration and maintenance.
- Collect user feedback. In the early stages of the process, work with experienced employees in each department to learn their impressions and consider their concerns.
- Train the HRIS system’s users. Training starts before the implementation begins and continues once the system is in place. The HRIS vendor should either provide training materials or direct you to third-party training services.
- Deploy the system. After confirming that the system is functioning as expected and users have been trained, the focus shifts to ongoing maintenance and continuous training as new features and functions are added in response to your firm’s changing needs.
One of the core functions of HRIS systems is serving as a central repository for employee information, which begins with data being entered into the database during employee onboarding. The data is then made available to other business departments, such as finance and accounting, to ensure all areas have the most up-to-date versions of the data.
The two primary groups of HRIS users are administrators and employees.
- Administrators and managers typically access information about job applicants, onboarding new hires and employee performance using a console or dashboard that can be accessed securely through a browser or mobile app.
- Most HRIS systems provide employee portals that workers can access from a desktop or mobile device to view pay stubs and other payroll information, benefits accrual and other HR and work-related matters.
HRIS systems are used by compliance departments to confirm that the company meets all regulatory requirements for workers and the workplace, including non-discriminatory job listings and candidate interviews, background checks, protection of sensitive information and pay practices.
HRIS leverages a business’s employee database to support records management, time and attendance tracking and other administrative matters. The systems serve as platforms for collecting, centralizing and securing sensitive employee information and as communication channels for sharing information with employees, such as pay records and benefit accruals.
By contrast, human resource management systems (HRMS) combine an HRIS’s employee data storage, communication and access with a broader set of HR management tools. These include recruitment, training, payroll, talent management, employee engagement and benefits administration.
When the term “HRMS” first arose in the early 2000s, it was seen as encompassing a broader set of business processes than the HR department’s core functions. Over time, the terms “HRIS” and “HRMS” began to be used interchangeably as companies transitioned from on-premises IT to cloud-based business services and software as a service (SaaS).
Customer relationship management (CRM) describes the process of managing a business’s interactions with its current and potential customers. CRM systems typically include contact management, sales management, marketing operations and customer services and support. Despite its name, CRM systems also manage the firm’s relationships with partners, suppliers and colleagues, so they can rightfully be considered people relationship management systems.
In some ways, HRIS can be seen as an inward-facing CRM that manages relationships between managers and employees and among a company’s workers. The CRM-like function of HRIS combines with its employee data management capabilities to create a solution that serves employers and employees by ensuring that the company’s operations are consistent, efficient and effective in reaching the firm’s goals.
Human capital management (HCM) focuses on ensuring that companies hire the best people for their open positions and realize the full potential of their workers. HCM encompasses many different administrative and strategic tasks:
- Recruiting.
- Onboarding.
- Training.
- Time and attendance.
- Payroll.
- Talent management.
- Compliance.
- Reporting and analytics.
The goal of HCM is to identify and eliminate redundancies in work processes and to provide trustworthy data to support business decision-makers in a timely manner. Like HRMS, HCM includes HRIS as a key component but goes beyond standard HR operations to integrate with the work processes that nearly all departments and areas of the business are engaged in.
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