Human Resource Information System (HRIS): An Evaluation of Net Benefits Based on the Perception of HR Practitioners

Abstract

In this day and age, the use of information systems (IS) in workplaces is indispensable. IS has been an effective tool in enhancing operational efficiency and for empowering the workforce. Human Resource Information Systems (HRIS) have been recognized as one of the major modern human resource (HR) tool (Jahan, 2014). HRIS handles the processes and transactions involved in managing human resources such as recruitment, training, benefits administration and employee records-keeping (Laudon & Laudon, 2014). With the strategic role that IS delivers to organizations nowadays, it is imperative that IS be evaluated on its effectiveness especially in the area of human resource management. The objective of this study is to evaluate the factors that affect the net benefits of human resource information systems (HRIS) in the business process outsourcing (BPO) industry in the Philippines. Using the updated DeLone and McLean IS success model, the study will investigate the factors that contribute to the implementation of HRIS based on the perception of HR practitioners. These factors are: system quality, information quality, service quality, use, user satisfaction and net benefits. Moreover, the relationships between and amongst these factors will be studied and how these factors affect the net benefits that HRIS delivers to organizations particularly in the BPO industry in the Philippines. A total of 214 respondents (n=214) who are HRIS users were asked to answer an online-based survey questionnaire. The research revealed that use and user satisfaction have positive effect on HRIS net benefits. In addition, the study has validated and confirmed the D&M IS success model in the context of HRIS use in the BPO industry in the Philippines. These findings offer valuable insights to HRIS implementers and business owners on how to strengthen the effectiveness of HRIS and maximize its potentials for the delivery of fast, quality and efficient HR services in the BPO industry.