Difference Between HRMS, HRIS and HCM Software

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Difference Between HRMS, HRIS and HCM Software

HRMS, HRIS, HCM- This alphabet soup can stir the mind of anyone easily. They are so confusing that most of the employees and employers use these terms interchangeably, very conveniently.

But, all three of them hold a level of distinction from each other, they are not the same! 

Clearly, little or no knowledge pertaining to this when you are in the corporate world more so when you are an HR can become a reason of embarrassment for you.

Better late than never, if you never got the time to do some research around this on your own, here is the difference.

What Is an HRIS?

HRIS stands for human resources information system and it enables its users to manage, automate and track the core HR tasks. Traditionally, this is used to create a database center for employee information. Moreover, its primary purpose is to link the data to the respective employees, departments or office branches, or the company wholly. Besides performing this, HRIS software may also be capable of doing reporting and analytics at a basic level.

When you find a software that offers the below mentioned 5 things, you should call it an HRIS software

  • Employee data consolidation- This is like a digital roster of employees that contains the personal information, designation, contact details, professional details and more. 
  • Payroll calculation- this pertains to salary calculations, deducting and withholding the right amount to give the benefits to the employees and keep your company compliant. 
  • Benefits management- This includes management of benefits like health insurance, life insurance or retirement benefits. 
  • Recruitment automation- Basic processes like posting jobs, tracking candidates, managing the candidatures and managing online applications received.  
  • Time and attendance keeping- This keeps a tab on the work hours, absences, and leaves of the employees and more. 

 The HRIS software may have all these or a few of the ones mentioned above.

What Is an HRMS?

HRMS software is the abbreviation for Human Resource management software.

Tip: Many individuals call HRMS as HRMS software, but it is wrong. The full form already includes the word “software” in it!

An HRMS seems much like an HRIS. The hairline difference lies in the usability of both the software. The former is qualitative and the latter quantitative. Besides, executing all the tasks that an HRIS does, it also has the ability to gauge employee satisfaction/happiness/engagement and performance. Different HRMS have different tools to review the performance of employees and engage employees.

What Is HCM?

HCM stands for Human Capital Management and a software that has all the HR software modules integrated into one as a suite is an HCM. Not only is it capable of performing all the tasks that HRMS and HRIS software do but do that in the most optimised manner. In addition to all this, it can also be used to do succession planning. Such software go beyond fulfilling the basic needs of an HR and help them stay better prepared for the risks and grab the opportunities ahead. The software can foresee the redflags and highlight the same to you to take actions before it gets too late. It is a combination of core and strategic functions of an organisation. Such HR software help in attracting, engaging, developing, managing and retaining people. 

Broadly speaking, here is what an HCM can do-

  • Manage administrative functions
  • Reinforce engagement
  • Develop Talent
  • Track attendance and time

while also processing payroll, and using the available data to show the trend and more.

All in all, this is how different three of them- HRMS, HRIS and HCM are from each other. We hope you are now in a better position to identify which HR software is what out of these.

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Sukriti Saini

Sukriti Saini works as a content marketing strategist at HROne. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. HR trends, Productivity, Performance and topics related to Employee Engagement garner most of her writing interest here. During leisure, she loves to write and talk about fashion, food & life.

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