Exploring the Different Types of HR Software

When it comes to human resource management system software used for the automation of the different HR functions, there are quite a few terms/acronyms one may come across with – Human Resource Management System (HRMS), Human Resource Information System (HRIS), (Human Capital Management (HCM), Talent Management System (TMS), and so many more. With so many terms out there, people are bound to get baffled and forced to wander if at all there’s a difference between all these terms and if yes, how these software are different from one another.

Before taking a closer look at the points of difference between all these different terms mentioned above, it is important to note that among all these, the most commonly used terms are HRMS, HCM and HRIS. This article looks into each one of these terms and how one should define them. The information that follows will help beginners to understand the difference between the terms used for the different kinds of employee information management software and also help them get the idea about using these terms in the right context.

1] Human Resource Information System (HRIS)

HRIS is a term that is used more frequently in the U.S. and is an employee information management software that is designed for the management of the people in an organization, along with its policies and operations. The following are the functionalities offered by a standard HRIS system, however, the functionalities might vary with the HRIS software provided by different vendors.

1. Recruitment Gateway/ Applicant Tracking System
2. Benefits Administration
3. Leave Management
4. Workflow Management
5. Training and Skill Development
6. Employee Self Service
7. Automated Reports
8. Compensation Management

Examples of good HRIS software: Zenefits, BambooHR

2] Human Capital Management (HCM)

HCM is a term that is used to denote a human resource management system that offers additional features as compared to the HRIS. In addition to the functionalities of HRIS listed above, the HCM also offers payroll management and a set of global features. Following are the additional features offered by HCM:

1. Performance Assessment
2. Data Analytics
3. Onboarding
4. Position Control
5. Salary Planning
6. Succession

Examples of good HCM software: Kronos Workforce Ready, ADP Workforce Now

3] Human Resource Management Software (HRMS)

More often than not, the HRMS software brings to the table all the functionalities of the HRIS software, and even the functionalities of the HCM software. In other words, the HRMS is the most comprehensive tool out there for not just employee information management, but for every task of the HR department. So, the list of functionalities offered by a HRMS software should look like the following:

1. Administrator Rights
2. Recruitment Gateway
3. Attendance Management
4. Leave Management
5. Workflow Management
6. Employee Self Service
7. Onboarding
8. Training and Development
9. Benefits Administration
10. Automated Reports
11. Compensation Management

Examples of good HRMS software: Digital HRMS, BeehiveHR

The Final Word:

It’s important to note that even though there are different types of employee information management and human resource management systems out there, the most popular software vendors, like Digital HRMS or BambooHR, offer HRMS, MRIS or even just HCM alone. This is because these vendors offer a modular software to cater to the specific needs of businesses big and small.