Difference Between HCM, HRMS & HRIS

HR technology such as HCM, HRIS and HRMS increases the efficiency of the HR department as well as the overall company by optimising HR processes. Streamlining and automating the day-to-day tasks frees time for HR personnel to take care of strategic planning that can help increase the company’s productivity significantly. As HR has come a long way from just being an administrative department to an essential strategic element of the company.


Understanding HR Software

Organizations can choose HRMS software according to their needs. Human resource software could be customised according to the special requirement. As technology keeps advancing, HR software is becoming more advanced and affordable. Firms can subscribe to various cloud-based HR software according to their features, budget, and requirements.


All the HRIS, HRMS, and HCM systems are similar in some ways as they tackle crucial HR processes such as attendance and payroll. The HR software also streamlines the data analysis, performance management and onboarding process.


The overlap of the various features of these HR solutions makes it look like they are very similar in nature. HRIS system is quite an earlier version of HR solutions. The HRMS can give assistance to all the requirements of modern human resource departments. Software such as HRIS and HRMS systems are developed to streamline various HR functions. Let’s try to understand these three types of HR software in detail.

HRIS stands for Human Resource Information System. HRIS solutions are used to store, process and manage employees’ data in organizations. HRIS tools streamline data processing to provide accurate reports with systematic data storage.


The interactive system facilitates the exchange of information between employees and employers. That removes the need for the HR department to be a medium of message exchanges and gains them extra productive data.


HRIS software also makes the information exchange simpler and paperless. Most Human Resource Information Systems nowadays are based on the cloud. You can also set up HRIS software on-premise. That way, employee data or other information related to human resource policies and operations. It is a secure and cost-effective method to process HR tasks and information.


HRIS benefits administration and HR teams by processing vast quantity employee data with greater accuracy and takes less time. That includes both personal and professional data and generates comprehensive reports for the same. The HRIS systems assist in HR functions such as payroll, attendance, benefits administration, and more.

Benefits of HRIS software

    • HRIS systems automate data entry and manual calculations to save time and increase the efficiency of employee data management.


    • HRIS software helps streamline the onboarding process with the features such as e-signing and managing employee documents.


    • Human resource information system digitalizes HR processes and reduces the use of spreadsheets and paper files. It keeps correct data records and creates a comprehensive database.


    • HRIS systems enable systematic data management along with ease of accessing essential data and facilitate the flow of information.


    • The HR software also allows employees to view their employment-related information and time-off details.


    • The HRIS software ensures that the company stays out of legal trouble by following all the necessary regulations. That includes state and national regulations and following international standards for firms with multinational operations.


What is HRMS Software?

A Human Resource management system (HRMS) is software that helps to manage human resource functions efficiently. HRMS software is designed to streamline HR tasks throughout the employee lifecycle. It assists and increases efficiency for both the employees and the human resource department.


This software are easy-to-use software with intuitive user interfaces. HRMS software also provides a self-service feature for employees and are easy to use, and doesn’t need special training for the same.


HRMS software automates a few of the most time and cost-consuming tasks, such as payroll and compliance. That significantly increases efficiency and decreases the HR cost. Organisations globally prefer HRMS software to automate various HR functions, such as recruitment, onboarding, talent management, performance management, training and much more. HRMS software is also flexible as it can be accessed on the cloud, making off-campus employee management easier and remote work arrangements effortless.

Benefits of HRMS systems

    • HRMS systems efficiently handle data collection and processing to generate comprehensive reports. That lessens the burden of the HR personnel and increases efficiency as HR departments get more time to work on strategic and productive workforce management.


    • Increase employee engagement through employee self-service and other features such as accurate personnel tracking and absence management.


    • This HR technology takes care of core HR activities such as recruiting, onboarding and performance management.


    • HRMS software helps in hiring plus retention efforts and adds talent management capabilities. That saves a lot of costs and helps to keep top talent inside the firm.


  • Human resource management systems have all the features that help HR teams to provide a better employee experience. The HR team can manage employee schedules and do other HR-related tasks efficiently, such as overtime tracking, leading to effortless labour management.

  • The human resource management system also provides efficient recruitment management through employee data, onboarding process, applicant tracking system, and compensation planning.

  • Along with administrative functions such as managing employee-related data, HR management can reduce the time taken for data entry and managing paper files. That makes HR departments more productive at their key capabilities as they don’t need to work on mundane work that can be easily automated with the help of a human resource management system.

What is HCM Software?

Human capital management (HCM) systems have been in use for a long time and are now combined with cloud technology. The HCM system helps to take care of multiple HR functions that improve the employee experience and productivity of the company.

HCM systems provide HRIS functions along with other advanced features. It also incorporated the latest technology, such as AI, to facilitate communication and ideas within the team.

HCM software automates most HR processes and helps in strategic management. It is concerned with company employee management and can assist in advanced HR operations such as talent management capabilities. The HCM software improves onboarding, performance management as well as offboarding activities.

Benefits of HCM Software

  • With the help of HCM solutions, you can easily access employee, and user data, as most of the modern human capital management systems, are based on the cloud.

  • You can customize packages for human capital management (HCM) according to the various features that you use.

  • The HCM systems are scalable and can easily accommodate the needs of a growing organization.

  • The human capital management software provides security to the employee database with the help of AI and automated updates on the cloud.

  • HR professionals easily do core HR processes due to intuitive design and employees benefit from the faster processing.

  • A cloud-based HCM system easily supports the hybrid work culture due to remote accessibility.

Exploring the Differences Between HR Software

The HRIS, HRMS and HCM software is designed to do the functions of the HR department more effectively. The processes related to human resources and employees are streamlined with the help of this software.

As all HR software helps to increase HR efficiency and employee productivity, it’s important to understand the similarities and differences to make the right decision for the company. 


Most of the functions of HCM systems and HRMS are related to employee management, such as attendance tracking, hiring process and benefits management and more. It automates the HR processes and streamlines the workflow. HCM are related to more strategic workforce planning, such as talent acquisition.


HCM systems are comparatively advanced and provide more solutions. HRMS streamlines the range of daily HR functions extending to strategic tasks such as performance analysis. They are easy to use and increase productivity through faster and more accurate processing.



The significant difference between HRMS and HRIS software is the complexity of the system. While human resource information management systems more or less stick to basic functions such as payroll and attendance, the HRMS software offers a wide range of utilities.


Due to the simplified nature of the software and the basic tools offered, HRIS is preferred by startups and small companies for their basic HR needs. When you consider HRIS vs HRMS for organizations that keep on growing, HRMS can to accommodate the requirements seamlessly.


The HRMS software provides better employee management and provides ease of operations for everyone. It can efficiently take care of tasks such as workforce acquisition and reporting, along with advanced data management. 



Human capital and human resources are very closely related terms because they both concern utilizing human potential to gain maximum productivity. If we consider human capital vs human resources, human capital refers to the knowledge, skills and talent that is already utilized. And human resources refers to the general potential that can be utilized from the existing workforce in the organization.


Human resource management is about hiring, training and developing the skills and expertise that the roles and responsibilities in the company need. Then comes human capital management(HCM), which is about managing the already existing expertise to optimize the firm’s productivity.


In organizations, efficient human resources management can be done with the help of personnel tracking, an HRIS system, and other HR tools for HR professionals, along with doing core HR management.


HR stands for human resource, and it is used to refer to the HR personnel or the HR team in the company. HR professionals are responsible for workforce management or labour management.


The human resources department understands that employees’ productivity controls the business value they intend to build and aims to increase employee engagement.


HRM stands for human resource management and is about managing employees and other related processes. We now use HR technology to decrease employee turnover and increase productivity.


The HR system is an HR tool or set of solutions in charge of HR functions such as compensation management, recruitment management, talent acquisition, employee engagement and much more. The right HR software also provides advanced HR technology, such as an applicant tracking system, which helps to streamline employee management.


Human resource management in the company is responsible for the entire hire-to-retire cycle of the employees. They support the staff to optimize their efficiency and improve the output of the company.


Human resource management starts with recruitment and onboarding, which continues to the offboarding of employees. HR also take care of other processes such as performance management, payroll and attendance, and strategic management at the company.


HR team take the help of HCM solutions to retain the employees in the company to ensure quality output. Building healthy and supportive work culture is another method used by HR personnel


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