With the ongoing digitalization, your management must be as much online as you are. With everything that has been made easily accessible, count in human resource management too. Today, we have tools to make your HRM as automated as you possibly could have imagined.

HRMS (or Human Resource Management System) tools have in a true sense given the uniqueness that your startups require. HRMS, HRIS, and HCM software have helped to facilitate smoother functioning with a smaller budget. 

This is why HRMS tools for startups and small businesses have created a buzz. With the advantages it has to offer, all of these terms must create a sense of meaning in one who is planning to involve system help. On that note, here’s what each of these terms implies:

What is HRMS Software?

HRMS software refers to a system of tools that helps you manage human resources and business data with the comfort of sitting behind a screen. With the amount of burden on HR, it is safe to say that a digital advancement would be the right way to go. HR has to perform almost every duty that remotely means managing the employees of the organization. From recruiting to motivating, everything is on an HR’s shoulders. If only we had a robot as an HR! Well HRMS is no less than what an HR robot would feel like. It aids in:

  • Recruiting employees using artificial intelligence wherein one of the jobs performed is scanning candidate resumes for your employee requirements.
  • Payroll management of every employee based on what is the accepted income for an employee performing a specific task in the organization.
  • Leave applications are also easy to tackle with HRMS by logging the leaves taken by any employee and whether they are eligible for another based on reasons and previous records.
  • The attendance of an employee is also taken care of by the HRMS portal.
  • HRMS system also helps keep an account of how an employee performs the tasks given to them by assessing the percentage of goals accomplished and the time taken in doing so.

What is HRIS?

HRIS or Human Resource Information System is a type of HRMS. Function wise, there is not much difference between HRMS and HRIS. Typically, HRIS is used to track numerical data and employee information. It aids organizations in managing their policies, employees, and procedures. 

It is also used for data entry, data tracking, and data management of the HR department in an organization. It helps to take care of tasks related to HR, accounting, management, and payroll that are going on within a department numerically. 

It helps to handle human resource expenses without the wastage of any resources in the HR department of an organization. 

It facilitates efficiency in the decisions made for HR. HRIS supports an organization by ensuring the addition of skilled and talented employees and their enrichment in every step of the journey. As any typical company spends a major chunk of their budget on employees, HRIS helps to extract major quality from them.

What is HCM?

HCM or Human Capital Management refers to curating business strategies to meet their organizational goals and applying Information Technology to impose them. It also undertakes employee rewards and their management. The type of strategies supported by HCM includes:

  • Employee planning
  • Assessing the employees’ capabilities
  • Managing the performance of employees
  • Logging for the time taken in the achievement of goals and the resources exploited
  • Training of employees
  • Recruiting a workforce
  • Implementing and enhancing teamwork qualities in a department
  • Taking an account of employee suggestions in building a plan
  • Workflow
  • Reporting of employees
  • HRMS vs HRIS vs HCM

Even though the three terms are synonymous and people usually do not realize the differences between HCM, HRMS, and HRIS, there are a few key distinctions. People often get confused when they come across the term HRMS vs HRIS vs HCM and then the question arises that can they be used interchangeably? Yes, sometimes. Since all three systems incorporate similar functions, it’s hard not to put them together. HRMS is a wider term than the other two. It comprises of both HR and IT sectors. HRMS and HRIS use IT to meet their HR goals and hence are closely associated with both the fields equally. HRMS shoulders HRIS which is more of a numerical system whereas HCM mostly looks after the qualitative analysis of a workforce. Some of the different functions performed by the three include:

HRIS-   Recruitment of the labor

             Attendance Management

             Reporting of Employees




HCM-   Undertakes HRIS


              Performance evaluation and enhancement

              Payroll planning

              Curating business strategies

              Employee relation

HRMS- Undertakes HRIS and HCM

              Payroll assessment

              Accounting for time and resources

Conclusively, HRMS is more robust and takes up functions additional to those performed by HRIS and HCM. Before opting for an HR solution, one must realize the requirements of their organization and the HR product better suited to accomplish the same.

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