What's the difference? HRIS vs HCM vs
HRMS
Difference Between HRIS and HCM
Generally, terms HRIS, HCM (Human capital management) and HRMS
are used as synonyms for each other. Whereas, the fact; HRIS is a function of HCM, which means HRIS (Human
Resource information system) is one of the types of HCM.
Similarly, HCM is a type of HRMS (Human resources management
software). HCM is all about HRIS, self-service, on-boarding, recruitment, etc. Whereas, HRMS comprises of all
these HCM functions with payroll and labor management as well.
It is essential for the company management to assess the
company needs and then select the suitable HRMS solution for the organization. Involve HR team and one
representative from each department in a decision making process to get the clear picture of the long-term and
short-term HRMS goals and its processes.
Finding and implementing the right HR Solution can contribute
huge to the company’s growth. Cloud-based HRMS system improves HR functionalities and helps HR team to act
more strategically. Moving towards automation and data analytics is a smart decision for businesses.
Below are some quick reasons which explains ‘WHY’ companies
need HRMS Solutions:
Its paperless approach
to store and manage employee data eliminates the problem of misplaced and also drops the cost of investment
in space and stationery.
HR MIS Reports tool
allows HR to generate reports without much effort, so getting a quick-view of critical information becomes
easier.
Employees can access
their own data through employee self-service portal which builds trust in the organization.
Increase employee
engagement and make company staff more productive.
Easy to track
real-time employee data, including leave balances and attendance.