Fundamental Differences between HRIS, HCM, and HRMS Technologies

Broadly speaking, HR software can be divided into 3 different categories, namely HRIS, HCM, and HRMS technologies. Each of these categories possess differing characteristics and capabilities. Therefore it is important for businesses to understand the fundamentals of these three types of tools before making a decision about which to incorporate into their work strategies.

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By understanding the key differences between all three of these tools, you will be more capable and informed about selecting the right solution for your company in regards to its specific requirements.

HRIS technology

HRIS technologies or Human Resources Information Systems are a type of software allowing users to digitally manage, track and automate the core needs of an HR department.

HRIS platforms are usually utilized as central databases capable of storing a large amounts of employee data. HRIS technologies can effectively link individual articles of data to a company’s employees, departments, branch offices, or indeed any other part of the company. This is so that data management can be conducted within a single place, making the overall task an easier endeavor. Apart from that, HRIS technologies also offer the ability to perform reporting or analytics at a basic level.

So, if HR software possesses the following capabilities, it can be said that it utilizes features of HRIS technology:

1. The ability to collect employee data

HRIS digitally collects employee data. Such data usually contains a wide variety of information in regards to employee profiles, contacts, detailed information related to work relationships with the company, and much more.

2. Payroll

HRIS provides the ability to efficiently calculate employee salaries, deposits and salary deductions.

3. Benefits Management

HRIS technologies utilize features that facilitate the management of benefits provided by the companies for its employees, such as in regards to insurance, pension funds, and other things.

4. Recruitment

HRIS usually automates basic functions that pertain to hiring, such as job postings and candidate tracking, as well as the management of accepted online applications.

5. Recording employee attendance time

HRIS can be used to monitor employee work hours, attendances, or leaves.

6. Self service

HRIS allows for employee access to databases as well as the ability to update individual personal information independently.

Read Also: Benefits of HRIS Applications for Both the Company & Employee Alike

HCM technology

HCM or Human Capital Management technologies are a more comprehensive type of tool by comparison to HRIS. HCM offers the capabilities of HRIS, yet adds further capabilities, namely in regards to talent management.

Here are some of the key features leveraged by HCM technologies, some of which you might find a useful addition to your company:

1. All HRIS features

2. HR Administration Functions

HCM can be used for managing the company’s administrative assets such as employee data, benefits and payrolls, among other things.

3. HR service delivery

HR service delivery refers to functions that can support and provide various services to the company’s employees. Examples include access to procedural and policy guidelines, document management, as well as basic information about the company .

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4. Talent Management

HCM technologies can be used in regards to talent management, such as in the assisting of the recruitment process, training, performance tracking, job posting, and the further development of skills, among other things.

5. Workforce management

HCM technologies can be used to record and manage employee attendance and create schedules.

6. Global HR Capabilities

Utilizes multi-currency and multilingual features in order to support the company’s international requirements.

HRMS technology

HRMS or Human Resource Management Systems are a type of technology that includes all the features offered by both HRIS and HCM systems, though with additional payroll and TLM (Time and Labor Management) features. Not surprisingly, HRMS is generally considered the most comprehensive system in regards to solutions offered by HR software.

Specifically, HRMS tools in general wield a number of capabilities, namely:

1. General features used by both HRIS and HCM technologies

2. Payroll

Ability to calculate payments and withhold taxes, among other things.

3. Time and Labor Management (TLM)

The ability to control employee schedules, track project times, along with the addition of other functionalities all serve to increase both the employee’s and the company’s productivity and ultimately, profitability.

Through the HRIS, HCM, and HRMS technologies, employee management can now be done more effectively. No longer do employees need to continue printing piles of documents, wasting paper in the process, as all such information can be stored and managed digitally within the system.

When choosing an HR software to incorporate within your company, you must first adapt it to the specific needs of your company. Such as, how many employees are there to be managed, what core features are specifically needed, the budget that is to be prepared, how user friendly is the device, and so on. By evaluating what the company needs first, you can then conclude what HR software is best suited to your company’s parameters.

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