HRIS, HRMS software, and HCM are tools designed to automate and manage human resources functions.
These tools utilise AI to help organisations complete low-value tasks in a short time. It lessens the burden on HR professionals and allows them to direct their focus on more strategic parts of their work.
Although these three terms are used interchangeably, each technology possesses subtle differences that set them apart. And it’s important to keep these differences in mind before choosing software to install in your organisation.
The Basic Understanding of HRIS, HRMS Software, and HCM:
Before we jump into the differences between HRIS, HRMS, and HCM, let’s briefly overview what these terms mean.
What do we mean by HRIS software?
The Human Resources Information System (HRIS) is an information management technology.
An HRIS stores and manages HR-related employee data, policies, and procedures in an easily accessible format. It ensures that all the data is securely stored and processed to be error-free and accurate.
Besides personnel tracking, HRIS software also manages employee attendance by using biometrics.
It automates leave requests and helps employees track the status of requests. In addition, it supervises employee work hours and generates reports and analytics based on their performance.
HRIS plays a huge role in recruiting by managing documentation and administrative tasks. It reviews the applicants’ profiles and shortlists candidates that best fit the job description.
Furthermore, it helps induct new employees into the company with its training database.
HRIS is a perfect way to introduce human resources technology into your organisation.
What do we mean by HRMS software?
The HRMS is a more advanced version of HRIS. A competent HRMS software like uKnowva can take care of various workforce administrative tasks.
uKnowva streamlines all employee-related data into one cloud-based storage account. It ensures that all the data is accessible and well organised.
HRMS software focuses more on talent management.
It provides advanced features to track timelines and generate reports to supervise the performance of the employees. HRMS software also facilitates incredibly smooth onboarding and offboarding.
Like HRIS, an HRMS also documents employee attendance with the help of biometrics.
It possesses advanced payroll management that allows accurate and on-time payrolls. It also tracks the salary of each employee quickly and easily.
Although a little complex, HRMS software is perfect for enhancing organisational productivity.
What do we mean by HCM?
Human Capital Management (HCM) refers to practices used to manage and achieve the best workforce within an organisation.
HCM practices take care of an array of administrative processes. This includes recruiting employees, managing and developing employees, and increasing productivity.
If implemented correctly, the HCM system can greatly contribute to the organisation’s success.
HCM securely manages company data in an error-free format. In addition, it takes care of administrative functions like payroll automation and benefits administration.
Budgeting, self-service portals, and position mapping also contribute to labour management.
The HCM technology ultimately achieves workforce optimization, encouraging business growth in the organisation.
The Differences Between HRIS, HRMS Software, and HCM
Let’s analyse the difference between each of these technologies.
HRIS software vs HRMS software (e.g., uKnowva):
HRIS and HRMS software are very similar in terms of the offered services.
But an HRMS like uKnowa extends those functions by offering advanced tools. For example, performance management and payroll facilities are some of the advanced tools available in HRMS.
Generally, an HRMS is complex. Whereas HRIS is more basic, focusing on essential HR-related tasks only. Simply put, HRMS includes all the features of HRIS software with advanced tools for workforce management.
Hence, HRIS is a perfect choice for small businesses. And HRMS works best for rapidly developing organisations.
HRMS software solution vs HCM:
The true difference between HRMS software like uKnowva and HCM lies in their definition.
HRMS is a software designed to manage complex human resources functions efficiently. At the same time, HCM refers to a suite of HR applications to improve productivity.
HRMS software is usually more user-friendly and manageable than HCM. That is because the latter complicates completing crucial tasks like employee life cycle management.
HRIS software vs HCM:
As discussed above, the HCM system contains everything that HRIS software offers and more, as it is very intricate.
While HRIS follows a fundamental approach to HR management, HCM is more strategic and relies on data to generate decisions.
An HRIS fulfils basic needs: simplified data automation and information management. And HCM achieves long-term talent management goals.
Conclude: Which system to choose?
In conclusion, HRIS, HCM, and HRMS software are all similar in their functions. However, the lines get a little blurry when you try to define their differences.
Hence, it is important to research extensively and find the software that best suits your company’s needs.
