Get the Skinny on HRIS, HCM, and HRMS Software Solutions

Get the skinnyHuman resources technology offers a broad range of solutions to businesses, from recruiting and tracking applicants to managing payroll and handling performance evaluations. Most HR functions require meticulous attention to detail, and that’s where a comprehensive software solution can significantly improve the efficiency of the office.

What is an HRIS System? 

Before we look closely at the capabilities of HR technology, let’s take a moment to differentiate the three closest relatives in the field, the HRIS solution, the HRMS solution and the HCM Solution.

  • HRIS—HRIS (human resources information system) software manages data about the people and processes of your company. It will typically include employee information storage, applicant tracking, reporting, training and development, compensation management, employee self-service, and other similar functions.
  • HCM—HCM (human capital management) systems manage all the elements of the HRIS, while adding deeper functions including talent management, analytics, performance management and evaluation, and global capabilities such as language translation and multiple currencies.
  • HRMS—HRMS (human resource management system) software includes all the functionality of the HRIS and some aspects of the HCM. The differentiating capabilities of HRMS systems are payroll and time/labor management.

 Within the HR technology industry, these terms remain somewhat fluid and different vendors may use them in slightly different ways. For example, HRIS systems may include payroll and HRMS may or may not include functions like scheduling and assessment. Still, it helps to understand the basic differentiations so that you know which questions to ask as you evaluate system capabilities.

Choosing Your HR Software Solution

Comprehensive HR solutions improve the efficiency of the HR department by automating many of the tasks that previously required paperwork and manual processing. Employee self-service capabilities also give employees instant access to documents and manuals and make it easy to request information or make changes to their benefits.

As you research, consider whether you will benefit most from a comprehensive solution or from purchasing individual modules to use in conjunction with your current system.

Common modules and functions of HR software include:

  • Payroll—Manage deductions and tax information; print and distribute checks
  • Time and Attendance—Keep track of hours worked, employee absences, vacation requests, and punctuality; feed data to payroll
  • Training—Track employee development, schedule presentations, keep track of certifications or badges earned by employees, manage enrollment and attendance requirements
  • Compliance—Collect and manage EEOC data, safety regulations, and reporting
  • Applicant Tracking System—Manage job postings, collect and search resumes, schedule interviews, coordinate recruiting efforts
  • Performance evaluation—Provide ongoing feedback, create opportunities for dialog, provide employee access to evaluations and goals, track behavioral assessments,
  • Benefits administration—Manage open enrollment, track eligibility, automate communication
  • Employee self-service—Update personal information, make changes to benefit options, request time off, manage direct deposit accounts
  • Employee Information—Store personnel records such as compensation history, previous jobs, performance reviews, education, and contact information
  • Metrics—Track turnover rates, productivity, employee satisfaction, retention, benefit costs per employee, absence rates, overtime expenses, training expenses and other key metrics
  • Onboarding—Generate and distribute offer letters, conduct background checks and screenings, verify employment eligibility, complete new hire forms, requisition workspace and IT logins, and improve new hire experience
  • Reporting—Manage data and generate reports across functions

Additional functionalities may be available from your vendor as well, either as individual modules or as part of a comprehensive solution. As you compare providers, our HRIS Comparison Tool will help you select software that offers the specific capabilities you need for your business.

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