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What is the difference between HRMS, HRIS and HCM?

Author: Sanjay Mehra
by Sanjay Mehra
Posted: Aug 20, 2018
hris software

Confused about the terms HRIS vs. HCM vs. HRMS when researching new HR technology solutions?

These acronyms have confused many in the industry as vendors, marketing professionals and analysts seem to interchange the use of these terms when marketing their technology solutions. Many business leaders struggle to understand the difference between these terms and how each area can influence the way they do business. There’s even a lack of harmony within the industry itself.

Here’s a closer look at the differences between the terms HRIS, HCM and HRMS what business leaders need to think about when evaluating systems for their human resource needs.

HRIS – Human Resources Information System

HCM – Human Capital Management

HRMS – Human Resource Management System

HRIS (Human Resources Information System)

HRIS Software is precious in dealing with the strategies and techniques that give direction to employees. HRIS software additionally causes organizations to keep employee data composed and open. An HRIS stores static information that does not change very often. It may store details that remain constant for a considerable period. Payroll is sometimes part of HRIS as well. An HRIS can help companies to evaluate simple data that provides useful data about staff and employees. HRIS started to gain popularity with the origin of computers, when HR managers could finally put those bulky folders and files away, to be replaced by electronic data.

HRIS solutions usually have the ability to help organizations with the accompanying:

  • Recruiting and Tracking of candidates
  • Training of employees
  • Open enlistment and management of benefits
  • Compensation Management
  • HR reporting
  • Workflow
  • Self-service for candidates, employees, and managers

HCM (Human Capital Management)

The HCM Software is normally somewhat more far comprehensive than HRIS Software. It includes most components of HRIS Software yet also has extra abilities, for example, talent management. HCM Software regularly have the ability to give interpretation between various dialects and monetary forms. Furthermore, HCM management has highlights that can help organizations with numerous parts of planning. Compensation planning, objective setting, planning, and progression planning are all possible with HCM Software. Examination and execution appraisals can likewise be utilized to track development and make adjustments to plans.

Some of the major functional elements that categorize a business solution as an HCM are:

  • HRIS
  • Analytics
  • Global HR
  • Salary Planning
  • Succession Planning
  • Budgeting
  • Goal Management
  • Onboarding

HRMS (Human Resource Management System)

HRMS Software commonly contains the highlights of HRIS and include some components of HCM Software. Most HRMS Solutions contain capacities to help with work and time management while containing highlights that assists to oversee payroll. Other than these functions, HRMS system may shift broadly. Some HRMS system may offer appraisal and planing devices, while others may principally concentrate on sorting out employee data. Some may provide planning capacities, while others may not. On the off chance that you are investigating HRMS system, it is critical to making sure that the particular software offers every vital component as a result of the considerable assortment of this software.

Some of the most common capabilities and features that are offered by an HRMS system include:

  • HRIS and HCM capabilities and features
  • Payroll processing automation and solutions
  • Time and labor management

Which HR system should you choose?

We hope we’ve cleared the confusion for you around these HR technology terms. The next step is to evaluate your company’s needs and determine which type of solution is the right fit. No matter the size of your business, all of these tools are useful in managing businesses. It is up to you to determine the set of goals you wish to accomplish with your system and which will be most beneficial to you.

Using systems that are designed to consolidate many different aspects of HR in one place improves usability, increases efficiency, reduces operational costs, and strengthen security exponentially. With the growth in your business, you have more needs and so having an easy and secure HR system is a must.

How factoHR can help?

factoHR is a single-system solution for all HR and payroll needs. We are a cloud-based system that securely manages and stores employee data from hire to retire. We have continued to develop and expand our technology over the years while ensuring our system is unified for the best possible user experience. In addition to Core HR, we offer Payroll Processing, Onboarding, Performance Management, Attendance, Leave, Travel Expense Management and Recruiting. We also provide the mobile application for easy and user-friendly HR and payroll solutions.

About the Author

Sanjay Mehra is Deputy incharge in workforce management houston with an experience of 8 years in federal department of workforce.

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Author: Sanjay Mehra

Sanjay Mehra


Member since: Aug 20, 2018
Published articles: 5

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