How Your HR Information System Impacts Compliance and Analytics

A company’s Human Resources Information System (HRIS) plays a major role in your compliance and workforce analytics work. HRIS platforms store important employee data that is used for non‑discrimination plans, audits, and required reports. If the data is incomplete, inaccurate, or hard to access, it can create serious compliance challenges and inaccurate results.

Understanding how your HRIS works—and staying involved when changes are made—helps ensure that your reports are accurate and that your organization stays compliant with legal and regulatory requirements.

There are many HRIS systems on the market. Most offer features like employee self‑service, payroll, reporting, and data storage. Some systems connect with other HR tools, such as applicant tracking systems (ATS), while others do not. No matter which system your company uses, there are several key considerations to keep in mind.

1. Reporting features – Many systems come with “canned” reports that are set up by the vendor but are likely not customizable. These might be adequate for some of the data you need for your plan and report development, but if regulations change, these might not provide the information from your system that is needed. If possible, make sure that reports can be built or customized from your HRIS or at least queries can be run to gather all the required data. Any custom reports should be saved, so that annual updates versus total rewrites can be made each year.

2. The GIGO Principle – The old computer science saying of “Garbage In, Garbage Out” holds true here. Reports coming from your HRIS are only as good as the data contained within it. For example, if information about employee work locations is not updated in your HRIS when employees move locations, being able to create and submit an accurate EEO-1 report would be difficult. If you are not the person responsible for the data entry, make sure you know who it is and what protocols they are following. Partnering with those who do data entry to educate them about what you need and when you need it can help make sure that your data output is accurate.

3. System Changes – Being recognized as a stakeholder in what happens with the HRIS and its data is critical. If those making the decisions are unaware of your use of the data and the retention schedule regulations for compliance; changes in HRIS providers could render your data unavailable, unusable, or at worst, noncompliant. Make sure that any system changes or transfers will allow for easy access to all historical data. If provided with a “data dump” in lieu of data being transferred to a new system, make sure that it is easy to use and does not require an additional interface to read the data.

   • If possible, try to ensure that the timing of any changes/updates does not coincide with your annual reporting dates.  Many companies look to make system changes in late December or January 1, but if you have a non-discrimination plan that runs on the calendar year, that could be problematic to prompt retrieval of your data at the start of your plan year.

   • A blackout period is the time that you cannot access either system. Beware of when your blackout period will take place and the estimated time of your blackout period. This can last a few hours to a few weeks, so timing can be critical to make sure that deadlines are not jeopardized or missed. 
     

4. System Updates/Upgrades – Similar to system changes, make sure that you are aware of any system updates and upgrades. Seemingly harmless changes, such as moving the location of the Voluntary Self-Identification of Disability form for employees within an employee self-service space can influence the quality of your data and perhaps even jeopardize your compliance with regulations.

5. Flexibility of system – In the current compliance landscape, requirements for data collection can change rapidly. Additionally, what data to collect might include an internal company decision based on the types of analytics you run. Being able to turn off certain areas but knowing that you might want to turn them back on later, should be considered.

6. Other sources of data – While some companies choose to have all employee data stored in one system, other companies might use different systems for various processes. The most common example is different HRIS and ATS systems that may or may not interact with each other. Be sure to consider all other sources of data – such as an ATS, Payroll system, Performance Management Systems and Succession Planning Systems when looking for all relevant data and understanding how it is entered into systems.

7. Artificial Intelligence (AI) – More and more, AI features are being added to systems. It is critical to understand what AI features your system offers and what your company is using to avoid running afoul of federal and state obligations. Using AI in the recruiting and hiring process comes with risks - check out Berkshire’s recent blog on the use of AI in hiring.

8. Recordkeeping and retention requirements – There are recordkeeping and retention requirements associated with Section 503 of the Rehabilitation Act, VEVRAA, EEO-1s and other federally required reporting. States may also have recordkeeping and data retention requirements. Any HRIS implementation or changes should be evaluated for compliance with these types of requirements, and new developments in regulations related to AI in employment should be monitored.

    

Accurate, well‑managed HRIS data is essential for effective compliance reporting and non‑discrimination workforce analytics. Staying informed, asking the right questions, and remaining involved in system decisions can make compliance work easier—and help ensure more reliable results.