The evolution of HRIS is not so much correlated with the evolution of the function, but rather with technological developments. This explains the variability in equipment across companies. More recently, the recognition of new needs, in particular employee empowerment, has accelerated the evolution of the offering. In this article, we will examine the evolution of Information Systems for Human Resources professionals, from the first personnel management tools to the emergence of Talent Marketplaces, and discuss their impact on HR management.
What are the developments and prospects for HRIS?
From these beginnings to today's talent marketplaces, information systems are adapting to the inflation of HR data, player takeover strategies and user autonomy.
Step 1: The Beginning
The beginnings of human resources management systems
In the beginning, personnel management was primarily paper-based, with individual files for each employee. Basic information such as name, address and date of hire was kept in manual files. This method of management was tedious and inconvenient, and did not provide a comprehensive view of all employees in a company.
The very first tools for personnel management
The birth of HRIS dates back to the early 1970s. At that time, their objective was to record data and simply to produce pay slips. This activity is still highly sensitive today because of all the regulatory constraints. At that time, the companies that produced these payroll solutions were ESNs such as Sopra, Steria and EDS on the one hand, and publishers such as Cegedim, Cegid and ADP on the other.
Stage 2: The arrival of computers
The introduction of IT for HR management
The advent of computers has solved some of the problems companies face in managing HR. The first human resource management software was developed in the 1960s and 1970s, and allowed for the automation of tasks such as payroll, scheduling and benefits. However, these systems were expensive and only available to large companies.
The first human resources management software
The 1980s saw the emergence of the first commercial HR management software. These systems were more affordable and accessible than previous systems, and allowed more companies to benefit from the advantages of computerized HR management. The IT department took care of setting up the necessary infrastructure and people joined the HR teams internally: this was the birth of the HRIS teams.
Step 3: More and more data
The rise of HR data
With the widespread use of human resources information systems in companies, employee data has become more numerous and varied. Companies began to collect information on salaries, performance, absences, skills, etc. This was followed by the emergence of data servers and client-server architecture to store more data and reprocess it.
The new challenges of data management for HR
HR data has become a major issue for companies, which are looking to use it to improve their performance. Human resources departments have therefore had to equip themselves with data analysis tools to make the most of this information. These software packages aggregate several processes and are very popular with HR. They can handle payroll, training, mandatory interviews, declarations to the authorities and many other subjects
However, managing this data also raises issues of confidentiality and security. We are beginning to see a dependence on few suppliers whose“on-premise” solutions do not perform well in all areas covered (the multi-specialist model does not work).
Step 4: Internet, or mass data sharing
With the arrival of the Internet, HRIS have undergone a major evolution. Data can now be shared in real time, facilitating communication and collaboration between the various players in human resources management. Employees can access information about their files, HR managers can follow their employees' career paths in real time, and decision-makers can make more informed decisions thanks to a better understanding of their staff.
However, managing HR data in the Internet age is not without its challenges. Data security and privacy issues have become increasingly important. It is crucial to put in place effective security measures to protect sensitive employee information, while ensuring easy and secure access to authorized individuals.
The impact of the Internet on HRIS
The Internet has dramatically transformed the way HRIS are designed, used and perceived. This revolution has enabled HR management stakeholders to become more efficient and productive, while improving the employee experience.
HR data management in the Internet age
Managing HR data in the Internet age poses new challenges. HR managers must ensure data security and confidentiality while providing easy and secure access to information for authorized individuals.
The 35-hour work week is a real turning point for HRIS and their evolution. It is becoming imperative to give the employees a hand in the shared data and we are beginning to think that it is not only human resources managers who can use this type of information system. The notion of self-service is emphasized in this generation of systems.
Step 5: New distributors in the market
The arrival of new players on the HRIS market has changed the way companies manage their human resources. Traditional solutions are now being challenged by more flexible, more accessible offerings that are better adapted to the needs of companies of all sizes.
These new vendors often offer SaaS-based solutions, which are simpler to deploy, more cost-effective and more easily accessible from anywhere at any time. This flexibility is especially valuable to companies looking to quickly adapt to market changes or workforce growth.
The arrival of new players on the HRIS market
The arrival of new players in the HRIS market has significantly changed the supply and demand for human resources management. Companies now have access to a multitude of innovative and customized solutions that meet the specific needs of each organization. Distributed architectures are gradually emerging, leading to innovations in HRIS. With these shared architectures, developers do not need to do customizations for each client. They do it for all of their customers if the companies want to. That's why costs go down.
The business model of SaaS is a turning point since it proposes to rent solutions with a price per user and no longer a global envelope with different intermediaries publishers, software firms, integrators etc. ….
From then on, “best of breed” solutions can be born, i.e. specialized on a domain. They compete with ERPs that do a little bit of everything. Today, they are viewed positively by HR departments, for whom this was a major change in their habits. This also leads them to strengthen their collaboration with their IT departments to ensure that they have a coherent set of data that communicate with each other.
New options for human resources management
The new options for human resources management are more flexible, more accessible and more economical than traditional solutions. Companies can optimize their HR policies, while enjoying a smoother and more satisfying user experience for their employees.
Currently, the big publishers are taking HR start-ups under their wings through accelerator programs such as SAP foundries. This allows them to bring together good ideas within a single solution. This way, they ensure that their software integrates with new generations of solutions and then buy them out if they have good traction. According to Arago, the On-premise vs. SaaS split is 50/50 in terms of solutions implemented at the users’ end…
Step 6: The emergence of open ecosystems
With the advent of cloud computing, human resource information systems have also begun to evolve. Open ecosystems have emerged as an alternative to traditional closed systems.
The benefits of open ecosystems for HR
Open ecosystems offer many advantages for HR. Firstly, they allow greater flexibility in customizing solutions to meet business needs. Open ecosystems also enable companies to easily integrate new modules and tools into their existing system. This enables companies to equip themselves with more specific functionalities that meet their particular business needs. Today, we’re at a key moment. Even if there is a commercial war going on, there is a very important logic of partnerships to ensure that the end-user is not penalized by a closed system as has been the case until now. We’re also seeing the emergence of marketplaces: Neobrain‘s has 30 partners. The key is to ensure the harmony and interoperability of all these “Best of Breeds”. As Sandra Rimbot, CHRO Sephora France, emphasized at Vivatech 2022:
Our role as HR managers is to ensure that the employee experience is seamless, particularly between all the systems available. Let’s put ourselves in their shoes: we can’t have 50 different HR systems that don’t communicate…
How open ecosystems have changed HR management
Open ecosystems have changed HR management by providing greater flexibility and adaptability to businesses. Companies can now integrate new tools and modules into their existing system, rather than having to purchase a whole new system to add functionality. Open ecosystems also allow companies to further customize their HR management system to their specific needs. This allows them to benefit from a more tailored, comprehensive and efficient solution for their HR management.
A central solution and peripheral solutions to back it up. At the same time, even the Best of Breeds are expanding their fields of application as a result of customer demand: not an easy task for HR. That’s why Neobrain has built joint solutions with software publishers of all sizes, and why you should consult the full list of these integrations.
The current evolution: Talent Marketplaces
What is the Talent Marketplaces?
Talent marketplaces are a place where employees can find all the opportunities for their company's development, such as internal positions, training, temporary projects or mentoring opportunities. It is also based on a new way of managing the relationship between employees and their organization, with an emphasis on transparency. This system relies on the use of artificial intelligence, which builds its recommendations based on individual preferences.
HRIS are no longer tools that simply provide information but, with real-time data processing, they become management tools.
The current challenge is to offer tools where employees, their managers and HR teams can see changes in skills and performance at a more regular pace. To achieve this, users must also have an interest and pleasure in using their solutions: User Experience and gaming help them to use them more.
How are Talent Marketplaces transforming HR management?
Talent Marketplaces are transformingHR management by providing a faster and more efficient solution for talent sourcing. Companies can access a large pool of qualified candidates and candidates can find job opportunities that match their skills. Talent Marketplaces also allow companies to find freelancers for temporary projects or to fill short-term vacancies. This allows companies to be more flexible in their HR management and to adapt more easily to fluctuations in labor demand.
Finally, transparency on opportunities is a prerequisite, and it also goes hand in hand with taking into account everyone's preferences.
