How to choose the right HR system (HRIS).

What an HRIS is

HRIS stands for human resources information system. It replaces the spreadsheets and email threads that hold employee information, and it gives employees and managers one place to request time off, sign documents and find policies. You will also see the terms HRMS and HCM, which describe broader versions of the same idea.

Signs you need one

• Employee records live in several spreadsheets and nobody is sure which is current.
• Time off is tracked by email and memory.
• Every new hire is onboarded differently.
• A customer or auditor asks for proof of who was hired and when access was removed.

What to compare

• Core records: the fields you need, documents, e-signatures and reporting.
• Onboarding and offboarding: task lists with owners and due dates.
• Time off: whether it can handle your accrual and carryover rules.
• Payroll and benefits: built in, or a reliable connection to the provider you already use.
• Hiring and performance: useful later, and not a reason to choose a system on day one.
• Integrations: payroll, accounting, your identity provider and your compliance platform.
• Permissions: control over what managers, finance and employees can see.
• Ease of use: if employees avoid it, the data goes stale.
• Pricing and contract: usually per employee per month. Check the term, renewal and what counts as an add-on.

All in one, or connected tools?

Some systems aim to cover HR, payroll, benefits and even IT in one product. Others do core HR well and connect to separate payroll and benefits providers. All-in-one is simpler to run. Connected tools let you keep a payroll provider you trust. Either works when the connections are set up properly.

Examples

BambooHR, Gusto and Rippling are common choices for small and mid-sized companies. They are examples, not a complete list. See our tools page for more.

How to run the selection

• Write down what the system must do in its first year, and what can wait.
• Shortlist two or three.
• Ask each vendor to demo your real scenarios: a new hire, a time off request, a departure.
• Have the person who will own the system and one manager try it themselves.
• Check references from companies your size.
• Decide who will own it after launch before you sign.

Then plan the setup

Choosing is the shorter half. The setup depends on decisions about structure, time off rules and permissions, and on clean data. See the HR system setup checklist and our guide to setting up BambooHR.