Human resource management systems are available in three kinds—HCM, HRIS, and HRMS. While these software platforms are sometimes interchangeable, all of them have distinct HR features and functionalities.
Think of them like three camera models with different specifications. The first camera can take wide-angle shots; the second can withstand rough conditions, and the third comes with a telephoto lens. Each camera can capture the moment but offers specific capabilities.
Let us take a closer look at how these Human resource management systems differ, along with their major functional elements.
Comparing HR Management Systems
The Basics
The acronyms HCM, HRIS, and HRMS are spread all over the Internet. No wonder people often use them interchangeably, which brings confusion, especially to non-techs and HR professionals who haven’t used any of the technology. Here is what each software stands for:
HCM— Human Capital Management
HRIS – Human Resource Information System
HRMS – Human Resource Management System
These three describe an HR software solution, which incorporates cloud computing, employee records, and specific human resource processes into one platform. They help HR teams handle routine tasks effectively, access databases, and implement a strategic HR plan. The table below illustrates the features present in each system.
| HCM | HRIS | HRMS |
| Performance & Goal Management Reporting & Analytics
Workforce Planning Onboarding Position Control
|
Absence Management Self Service Portal
Benefits Administration Recruitment Compensation Management Training Personnel Tracking
|
Payroll
Time & Labor Management (TLM) (includes features in HRIS and HCM systems)
|
HCM
Short for human capital management system, HCM focuses on the core business asset—the workforce. This software type provides administrative and strategic support that a company needs in people management. Some of the functions in an HCM system include:
Performance and goal management. Workforce management involves employee performance assessment and optimisation. Thanks to HCM, human resource professionals can save a significant amount of time doing company- or team-wide employee assessments.
This HR technology not only tracks performance, productivity, attendance and overtime data, but also helps to identify employees who need additional training.
Workforce Planning. Not all human resource management systems can provide the HR teams with a basis for appraisal, promotions, disciplinary actions, and more. HCM software, in particular, assists human resource leaders in creating succession plans, identifying skill gaps, and even implementing monetary and non-monetary workforce rewards.
Position Control. Through HCM, companies can ensure that each employee has the matched responsibilities and performs the right tasks. The HR system creates a framework for all the jobs, salary range, qualifications, and more.
Reporting and Analytics. Human resource capital management software shows an in-depth view of key HR metrics. It analyses data from multiple angles, allowing HR professionals to run operational reports, develop key performance indicators (KPIs), evaluate the organisation’s strategic direction, and submit reports with great ease.
Onboarding. HCM also improves every company’s onboarding process. It streamlines the process for new hires thanks to the system’s centralized and innovative design. The software is like a single source for guided tutorials, pre-boarding and onboarding documents, personal details, and workflows that helps new hires to catch up and adapt to the business process quickly.
HRIS
A human resource information system or HRIS takes care of the HR and recruitment process. It unifies employee data, training records, policies, procedures, and other information into a single platform.
In short, HRIS provides a single repository of information that human resources teams need in their routine tasks or processes. It features essential capabilities, including:
Absence Management. With this feature, HR staff can easily track employee hours worked and leave balances. It also offers great help in managing time-off requests, such as sickness, vacation, maternity leave, and so on.
Benefits Administration. An HRIS with benefits administration functionality enables employers to cut administrative costs, save time and resources, and most importantly—stay compliant. It lets HR administrators process employee requests (i.e., benefit elections, re-election, enrolment changes, etc.) via the platform, thus eliminating the need for manual processing of requests.
Compensation Management. Human resource information systems also offer compensation management functionality. For example, the software provides the option to create employee profiles that will help oversee an employee’s hourly rate or salary and start date at one glance.
Personnel Tracking. Since HRIS processes and stores information in a single place, HR teams can access hundreds or thousands of employee data without scanning a pile of printed documents. The online employee directory makes employee information easily accessible, not to mention manageable.
Self-Service Portal. As the name suggests, this feature enables employees to manage their own affairs, including updating personal information, tracking payroll and benefits, and requesting time-offs or leaves.
Training. HRIS facilitates learning and development within a company. It often comes with a module that allows HR to track employee’s qualification, certification, and skills.
Recruitment. A human resource information system essentially simplifies the recruitment process. It allows recruiters to post job openings and job descriptions, store job applications and resumes, manage interviews, and more with applicant tracking systems (ATS).
HRMS
Out of all the human resource management systems acronyms, HRMS is the most widely used one. What could be the reason? It is because HRMS offers the most comprehensive software solution among the three.
Human resource management software typically includes all the features of HRIS and HCM systems. What makes it even more reliable is that it adds unique HR functionalities—payroll and time and labour management.
Payroll Processing. Payroll processing is complicated, from calculating total wage earnings to withholding deductions, filing payroll taxes and more.
With HRMS, HR and payroll specialists can relax a bit and avoid the payroll panic. The software allows automatic calculation of employees’ wages and withholding of individual deductions. Plus, it also issues payments via direct deposit.
Time and Labour Management. In its simplest, this feature tracks employee schedules and project times. It can quantify the number of hours spent on a task or project, enabling managers or HR leads to monitor and increase productivity.
The Takeaway
Regardless of the term, HRMS, HRIS, and HCM share a common goal—to help HR teams work efficiently, productively, and accurately. However, these human resource management systems have characteristics that are true to their own.
Authored by Rachel Chung, Unit4 Prosoft