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HRIS vs. HCM vs. HRMS: what's the difference?

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In the world of human resources, there are different types of software systems that help manage employees. There are so many payroll and hr systems to choose from. You may have heard of HRIS, HCM, and HRMS, but what makes them different from one another? Let’s explore the differences between these systems and help you understand which is best for your organization.


What is HRIS

HRIS, or Human Resource Information System, is a tool that helps HR departments keep track of important employee information. It allows companies to store employee names, addresses, and job titles in one place. With HRIS, companies can also manage things like attendance, benefits, and payroll. It helps make processes more organized and ensures accurate and current information.

HRIS also provides companies with the ability to generate reports and analyze data. These reports can help HR professionals gain insights into employee turnover rates, training needs, and performance evaluations. This allows companies to make more informed decisions by providing them with valuable data and metrics.


What is HCM

HCM, or Human Capital Management, goes beyond just storing employee data. It focuses on the strategic management of employees to help achieve organizational goals. HCM systems include features like talent acquisition, which helps find and hire the right people for the job. It also includes performance management to track employee progress and provide feedback. Learning and development programs are part of HCM, too, offering training opportunities to help employees grow and succeed. HCM is all about maximizing the potential of the organization's human resources.

In addition to talent acquisition and performance management, HCM also encompasses other critical HR functions like workforce planning. This involves forecasting future staffing needs based on organizational goals and market trends. HCM systems also facilitate employee engagement initiatives, such as surveys and recognition programs, to foster a positive work culture and boost employee morale. 

HCM systems can even include succession planning, which identifies and develops potential leaders within the organization to ensure continuity and growth. By integrating these various functions, HCM helps organizations align their human capital strategies with their overall business objectives.


What is HRMS

HRMS, or Human Resource Management System, is software that handles many administrative tasks within HR departments. It includes payroll processing, benefits administration, and time and attendance tracking. HRMS helps HR professionals stay organized and ensures employees are paid accurately and on time. It also helps with compliance by keeping track of important regulations and requirements.

HRMS also offers employee self-service, which allows employees to access and update their personal information, view their pay stubs, request time off, and enroll in benefits. This empowers employees and reduces the administrative burden on HR staff. HRMS also includes reporting and analytics capabilities, providing HR professionals with valuable insights into workforce trends, employee performance, and overall HR metrics.


What Makes Them Different

Each system handles employee information, but they specialize in different parts of managing people at work.

HRIS is like a giant digital filing cabinet where all the important details about employees are stored. It keeps things organized by tracking employee names, addresses, job titles, and other important information in one system.

HCM goes beyond simply storing data. HCM systems have special features to find and hire the right people for the job. They also track employee progress, provide feedback, and set goals to help them improve. HCM even offers learning and development programs to help employees learn new skills and grow in their careers. It's all about optimizing the company's human resources.

Then there's HRMS. HRMS systems handle things like processing payroll, managing benefits, and keeping track of employees' time and attendance. They make sure that employees get paid accurately and on time and help the HR department stay up to date with regulations. HRMS is all about taking care of the administrative side of human resources.

So, you see, while all three systems—HRIS, HCM, and HRMS—deal with employee information, they each have their own specializations. HRIS is like the foundation, storing the data. HCM focuses on managing and developing employees to help the company succeed. HRMS takes care of the administrative tasks to keep everything running smoothly. Together, they form a powerful trio, each contributing to different aspects of human resources management.


Which is Right for You?

Choosing the right system depends on the size, complexity, and specific needs of your organization. If you're looking for a simple way to manage employee information, an HRIS might be the best fit. If you want to focus on strategic HR practices and employee development, HCM could be the way to go. But, if you need a system that handles more administrative tasks like payroll and benefits, an HRMS might be the right choice. Consider your goals, priorities, and budget to make the best decision for you and your organization.


An Integrated Approach

If you don’t want to settle, consider an all-in-one system like Fuse Workforce Management. Fuse combines the benefits of all these systems to create one integrated solution to handle all your HR needs.

Don't deal with limited features or complex integrations between different systems. See how Fuse can revolutionize your HR systems so you can focus on what matters most, your people.