All You Need To Understand About HRIS And HRMS

As IT sector rapidly develops, all segments of the business develop as well. This is the case with human resource management too. Everything is automatic. Today, if you are not using business software, handling business activities is a hassle.

Manual business activities will lead to high costs, loss of time and a lot of stress. The same is for the human resource management. Human resources today are the most valuable inputs. No matter what business you run, you will need people. You need to manage these people. You must monitor them, evaluate their work, pay them and of course make them happy if you want them to work dedicatedly. There are a lot of factors to assess all aspects of hris vs. hrms.

HR technology systems

Human resource management includes all activities connected with employees, from recruitment to retirement. Today, when we have developed HR technologies, data are used in a more efficient way, and HR activities are more productive. HR technology systems make managing of the employees more effective. These technologies also make organisations more decentralised.

The number of human resources management technology systems on the market are rapidly increasing and are offering wider set of functions and abilities far more than before.

On the market, you can find HR solutions that require integration with other HR software if you want full functionality. Some vendors offer solutions built on new technologies, such as cloud solutions. Others have kept core HR modules with adding some extra functionality. Which one you will choose depends on your needs. In any way, you cannot run your business without it.

Small and medium businesses follow large companies to understand the procedures and strategies for growth. They do not have a choice, because if they don’t, they will lose a chance not only to compete with them, but also even exist. People are the most important resource of any company, irrespective of the size of the company. So, take this seriously and quickly get the latest software that will help you to manage and keep them under your umbrella.

Differences between HR technology systems

If you are new to this area, you are probably a little confused about different HR technologies. No wonder! Many acronyms describe HRMS software solutions, such as HRM for Human Resource Management, LMS as Learning Management System or TMS for Talent Management System. Which one to choose and which are for what? So confusing, isn’t it? What are the differences between HRMS & HRIS ?

The most important are HRMS (Human Resource Management System), HRIS (Human Resource Information System). HCM (Human Capital Management) is also often used in this field of work. Let’s see the differences between them.

Human Resources Information System – HRIS

HRIS software is designed to manage people, procedures, and policies. It merges human resources activities with information technology, thus giving rise to Enterprise Resource Planning (ERP) software.

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A Human Resource Information System (HRIS) stores data of the employees in human resource database and provide tracking and reporting of this information. HRIS involves many capabilities. Some of them are Employee Information, Employee Training Records, Time and Attendance, Payroll, Benefits Administration, Performance Compensation, etc. In HRIS, you will have all information of your employees in one place.

It is important to mention Human Capital Management (HCM) since it is being increasingly used lately. HCM includes all elements of the HRIS, but also has Talent Management and many other opportunities that are important for global business, such as multi-currency, multilingual, country-specific formatting and so on.

Human Resource Management System – HRMS

HRMS serves for performing human resource management activities. It is simple to use and has everything you need to manage employees. Also, it is more cost effective and value for money.

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HRMS is a software application that allows Human resource department to provide almost all activities in it. It involves many human resource functions, such as performance analysis, payroll, recruiting, benefits administration, training, and much more, all in the one package. It also enables improvement in traditional processes and strategic decision making, since it integrates information from different resource modules into one universal database.

This means that HRMS involves all elements of the HRIS and some of the HCM. Since the HRMS often is very massive, covering a wide range of HRM data and activities, some vendors exclude some of the functions. So, you may find different combinations of HRMS. For example, HRMS that includes HRIS, Payroll and TLM, or HRMS that has HCM, Payroll and TLM and so on.

You may choose one of the three solutions. If you want just basic activities, then Core HRMS is the best for you. It has all administrative & management functions that you’ll need. If you want to include talent management, then choose Strategic HRMS. If you want all, including administration, recruitment, talent management and e-learning, Integrated HRMS is the right choice. If you are new, start with the first and then try out the others.

Since the Human Resources departments have expanded their complexity, the HR technology systems must have to develop and expand as well to cover all that the Human Resources department needed.

Which to choose?

Well, it depends on what you need. As mentioned, HRMS includes HRIS and comes equipped with additional features. Let’s see then in details what you will get with each.

• HRIS is a system that Human resources department uses to track employees and information about them. It is a database with all information about employees. It keeps track of personal information of employees such as address, phone number, social security number, tax status, benefits status, department, payroll information, etc.
• HRMS, on the other hand, has much more than HRIS. It involves many HR activities and can handle that entire Human Resource department needed to do. It stores data for tracking performance, improvements, employees’ satisfaction, training status, etc. Combined HRMS and HRIS software allow the real-time collaboration functions.
• Some individuals have an opinion that they are the same, that they provide the same functions, but it’s not the truth. Although yes, there are some improvements in the market. Maybe you can find HRIS software with more functions, closer to the HRMS, but in general, HRMS is wider and more comprehensive than HRIS, at least for now. Also, for smaller companies HRIS may cover needs, but if your company has more than fifty employees, probably you will need HRMS.

In the end, when you have seen all characteristics of the HR technology systems you are well informed and prepared to choose the right one for you.

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