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HRIS & HRM System: What Is the Difference between these HR Solutions

Are you planning to get an HR technology for your business but confused about acquiring HRIS or HRMS? If so, then this article is what you need.

While these software platforms help HR teams work efficiently, productively, and accurately, keep records secures, and automate HR routine works, these two are not completely the same.HRIS software and HRM system have few fundamental differences between them.

Let us look at their differences to stop the confusion and help you find the best solution that suits your company’s HR needs.

 What Is an HRIS?

Short for the human resource information system, HRIS focuses on workforce data, such as employee information, training records, time and attendance, and more. The software is built around the databases, hence the “information” part of its name.

An HRIS software solution allows users to manage, track, and automate various HR processes digitally, including:

Attendance and Absence Management.This feature enables HR professionals to track employee hours worked and leave balances. It also offers great help in managing time-off requests, i.e., sickness, vacation, maternity leave, etc.

Benefits Administration. With the benefits administration functionality, employers can set-up rules like auto-enroll, tax percentages, benefit tiers, dependent types, and so on.

Compensation Management.HRIS not only tracks employee working hours but also does compensation management. It gives HR specialists a detailed view of employees’ compensation, which may help them spot discrepancies and potential opportunities.

Employee Self-Service Portal.Through this, employees can access and update their personal information, enrol in benefits, and check accrual balances.

Personnel Tracking.Since the human resource information system processes and stores ‘information’, the HR team can manage and maintain an online employee directory, easy and hassle-free.

The thing is, not all human resource information systems have all the applications above. Some only have two or three, but the five functionalities provide a good baseline.

What Is an HRMS?

A Human resource management system or HRMS is an inclusive software used to manage a host of HR-related processes throughout the employee lifecycle. It encompasses all the HRIS capabilities and also includes the following unique features:

Recruitment and Talent Acquisition.An HRM system can also make the recruitment process easier for organizations. The HR platform allows recruiters to post job openings and descriptions online, store job applications and resumes, manage interviews, and more with applicant tracking systems (ATS).

Payroll Processing. Payroll processing is a primary function of human resource management software. Thanks to this functionality, HR and payroll specialists can automatically calculate employees’ wages, withhold individual deductions, issue payments via direct deposit, and more. Benefits administration is also included in this feature set.

Performance Assessment.Performance reviews can take up to 40% of an HR professional’s time each week. If an HRMS is in place, HR staff can save a significant amount of time doing company- or team-wide assessments. This HR technology delivers real-time visibility on attendance and overtime data and identifies who needs additional training.

Also, some HRM systems come with an employee self-assessment. This feature allows employees to evaluate their performance by filling out the self-assessment form created by HR.

Reporting and Analytics.HRMS provides human resource managers with support in analyzing data from multiple angles. This software solution can run operational reports to track HR information, develop key performance indicators (KPIs), evaluate the organization’s strategic direction, submit reports, and more.

Since multiple sets of data are recorded and maintained within the system, it is easier to generate accurate, detailed reports and make well-informed business decisions.

Training and Development.Learning and development is an essential element of HR. When a learning management system (LMS) is integrated with HRMS, human resource leaders can take control over the employees’ development. HR professionals can also create training curriculums, personalize learning plans or career paths, and set up mentorships via the platform.

Workforce Planning.An HRM system not only includes employee management and analytics but also comes with workforce management and planning. The self-service portal, for example, may be used to identify skill gaps and create succession plans.

Also, the performance evaluation functionality and time and attendance tracking tool can provide HR leaders a basis for appraisal, promotions, disciplinary actions, and more.

The Thin Line between HRIS and HRMS

If HRIS tracks quantitative data, i.e., personnel information, the number of hours worked, etc., HRMS monitors and manages qualitative employee information, such as employee satisfaction and engagement. The latter is a more comprehensive software solution as it typically covers every capability of a human resource information system.

Summing It Up          

Regardless of the term, HRMS and HRIS share the same aim: to help the human resource team run day-to-day workforce operations more efficiently. It is up to you on what HR technology to choose. However, an HRM system makes an ideal choice if you aim for a platform that integrated various strategic HR functions into one solution.

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