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The HR field is abundant with terms and abbreviations. When searching for the ideal HR software to enhance efficiency and productivity, teams often need to choose between an HRIS, HRMS, or HCM system.
This article will clarify the differences between these three types of HR systems and guide you in selecting the best option to meet your specific business needs.
HRIS vs. HRMS vs. HCM: What’s the difference?
The terms human resources information system (HRIS), human resources management system (HRMS), and human capital management (HCM) have many similarities. These terms broadly refer to comprehensive tools and strategies designed to manage an organization’s workforce and align its needs with its business objectives.
The key differences between HRIS, HRMS, and HCM lie in their detailed applications:
An HRIS focuses on storing, managing, and tracking employee-related data to support core HR processes. This is the foundational HR software type. An HRMS is a more advanced system offering applicable tools for managers related to performance management, analytics, and employee engagement, in addition to the HRIS capabilities. HCM tools serve a more impactful purpose for high-level HR strategy and planning within a business. They include capabilities around succession planning, industry benchmarking, and compensation management,
