HRIS vs HCM vs HRMS: What’s the difference?
Tags: HR, Hrms Software, Hcm, Hris, Human Resource Software

A guide to types of human resource management systems and technologies taking center stage in 2021

Most companies use human resource management systems to ensure seamless employee management, to improve engagement, and to maximize productivity. The HR management software space is rapidly evolving and there are some exciting emerging technologies that are taking center stage as we enter 2021.

First, let us take a closer look at the current HR management software landscape, the different kinds of HR systems that are available on the market, and the differences in their features.

In general, human resource systems are divided into three categories:

HRIS (Human Resources Information System)

HCM (Human Capital Management)

HRMS (Human Resource Management System)

HRIS (Human Resources Information System)

An HRIS (Human Resource Information System) software is designed to manage and process employee data and to maintain administrative employee records.

The HRIS enables tracking of human resources, payroll, accounts, etc. and allows you to easily manage your basic HR activities including recruiting, training, payroll, compensation, and performance management.

While each HRIS software offers a unique set of capabilities, there are a few features that you can expect from every HRIS software.

Basic HR functions including employee data management

Leave, holiday and loss of pay management

Employee payroll, benefits and tax calculators

Employee training and skill development

Self-service portal to let employees view, manage and change their information

Reports on performance, productivity and revenues

Candidate search, applicant tracking and recruiting

HCM (Human Capital Management)

An HCM (Human Capital Management) software usually offers all the functionalities of an HRIS but goes a step further by offering employee performance and goal management, analytics, and localized global workforce management.

An HCM goes beyond the basic administrative HR functions and gives businesses the opportunity to drive engagement, productivity, and profitability.

HCM allows businesses to make their workforce a core business asset and allows them to maximize the value of their workforce through strategic analysis, planning and management.

Here is a quick look at some of the most common features of an HCM:

All the features of an HRIS (Human Resources Information System)

Streamlined onboarding of new employees

Employee performance monitoring and goal management

Salary and human resource expense budgeting

Reports with automated data collection and predictive analytics

Global workforce management to support multi-national businesses

HRMS (Human Resources Management System)

An HRMS (Human Resources Management System) usually offers all the functionalities of an HRIS and HCM along with a wide range of complex HR management requirements.

Most HRMS softwares include payrolls, time management, expense claims, leave and holiday management, etc. along with employee performance tracking and appraisals.

Here are some of the basic features of an HRMS:

Most of the features of an HRIS and HCM

Employee salary and taxes, automatic direct deposits

Project progress tracking and resource optimization

Employee performance metrics

Legal and immigration compliance

HRMS software usually includes all features of an HRIS and HCM

Future of HR management systems

As we said earlier, the human resource software landscape is evolving rapidly as new technologies find implications in the recruiting and staffing industry.

From fully digital, remote onboarding to VoIP calling and chatbots, here are some of the exciting new features that are changing the traditional practices in human resource management.

Remote onboarding: With a large portion of hiring and onboarding taking place virtually, it is now more crucial than ever than an HR management system that offers contactless onboarding capabilities including digital signatures and effective document management with OCR, etc.

With a large portion of hiring and onboarding taking place virtually, it is now more crucial than ever than an HR management system that offers contactless onboarding capabilities including digital signatures and effective document management with OCR, etc. Video and VoIP: Communication has emerged as one of the biggest challenges for most businesses trying to improve productivity in the remote work setting. An HR management system that provides video conferencing and VoIP calling functionalities can help HR managers communicate effectively and increase engagement with employees.

Communication has emerged as one of the biggest challenges for most businesses trying to improve productivity in the remote work setting. An HR management system that provides video conferencing and VoIP calling functionalities can help HR managers communicate effectively and increase engagement with employees. Cloud-based, global applications: The days of in-house HR management systems are coming to a close. Most HR software vendors now offer cloud-based applications that allow businesses to operate globally using cloud-based application. Modern HR systems also allow business to localize, customize the HR management system for legal compliance and taxes calculations for different geographies where the business operates.

The days of in-house HR management systems are coming to a close. Most HR software vendors now offer cloud-based applications that allow businesses to operate globally using cloud-based application. Modern HR systems also allow business to localize, customize the HR management system for legal compliance and taxes calculations for different geographies where the business operates. End-to-end integrations: As most businesses use numerous software applications to manage different aspects of their business, it is crucial that the HR management system integrates and interacts with other biz apps. An HR management system that integrates with your vendor management system (VMS), applicant tracking system (ATS), customer relationship management (CRM), accounting applications, etc. can improve productivity and streamline business processes.

As most businesses use numerous software applications to manage different aspects of their business, it is crucial that the HR management system integrates and interacts with other biz apps. An HR management system that integrates with your vendor management system (VMS), applicant tracking system (ATS), customer relationship management (CRM), accounting applications, etc. can improve productivity and streamline business processes. Candidate, employee chatbots: Thanks to the innovations in artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) over the last few years, chatbots have become far more efficient at communicating with humans and answering basic questions. Chatbots also offer another way to improve communication between HR managers and employees about document renewals, resume updations, leave applications, etc.

To conclude, an effective right HR management system can help businesses optimize their employee life cycle, improve productivity, and maximize revenue. So keep an eye out for these features the next time you are out shopping for a human resource management system.