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Contracts AI in Human Resources Information Systems (HRIS)

Noah Waisberg • May 30, 2022 • 2 minute read

What is a Human Resources Information System (HRIS)?

A Human Resources Information System (HRIS) helps companies understand details of their employee relationships, and convey HR-relevant information (e.g., leave policies or holiday schedules) to employees. A HRIS tracks all sorts of critical employee data, including employee name, address, birthday, identification number, address, role, job level, pay, manager, vacation days granted and used. It should also contain relevant employee documents, like signed employment agreements and copies of formal correspondence (e.g., promotion or disciplinary letters). Many companies with over 50 employees have a HRIS.

How Contracts AI can help when embedded in a Human Resources Information System (HRIS)

Sometimes, HR teams need to determine details of employees’ employment arrangements. For example:

  • Ontario, Canada (where we’re HQ’d) recently banned most employee non-competes. HR teams across our province are reviewing their already-existing employment agreements to determine which need to be changed before the deadline. This type of change in employment law or policy happens from time to time, and can take a lot of work to deal with.
  • In a financing or acquisition, HR teams can have to pull details about “golden parachute” clauses, potential liability for termination payments (including to non-management employees), and employee IP protection arrangements.
  • Ahead of a restructuring, HR teams can have to cost out terminations. This analysis can depend on details of what individual employment contract termination provisions say.

This information is often trapped in a company’s employment contracts. This raises three problems for HR teams:

  • Contracts can take a lot of time to review - easily >15 minutes per agreement, sometimes much more. And they can be dense.
  • A company’s employment contracts may be on a bunch of different forms. They can differ by level, region, when signed, if acquired in, if negotiated.
  • The HR team members who need to do the review may have a lot of other work on their plates. They may also not be experts at reviewing employment agreements.

Contracts AI can help HR teams get at this information faster and more accurately. While dedicated Contract Analysis software could be helpful in this work, in our experience, HR teams do not use this software to help. On the other hand, they may use their HRIS daily. HRIS vendors can give their users valuable additional functionality by embedding Contracts AI.