The rapid advancement in technology has had its influence on every aspect of business. In order to stay competitive, organizations from every field, and not just the IT field, have switched to automation of business processes. There is a software available to cater to the operations of every department today. When it comes to the Human Resource department, we come across two key terms very often – HRMS and HRIS. Many people are left wondering about the difference between the two and what adds to the confusion is the fact that they are often used interchangeably.
HRMS stands for Human Resource Management System whereas HRIS stands for Human Resource Information System. While both of them are similar software, there are a few points where they differ. Here’s an overview of the similarities and differences.
What’s the Similarity?
Both HRMS AND HRIS are software designed to cater to the Human Resource department in an organization.
They are used to automate and manage the HR processes.
They have common benefits to bring to the organization, such as increased productivity of the HR department and boost in employee morale, among others.
What are the Differences?
Even though it’s a common occurrence to see the terms being used interchangeably, there are small differences between the two, based on 4 key parameters, as given below.
1] Objective:
HRIS:
It is a result of the introduction of information technology into the concept of HR management. The goal of the software is to simplify the organization of the information or data concerning the employees of an organization. It caters more to the numerical aspect of HR functions.
HRMS:
It is designed to do more than just manage information and data. HRMS is a complete package that offers a host of capabilities for every aspect of HR functionalities, which includes even the non-quantifiable aspects, such as training, employee motivation, recruitment of top talent and more.
2] Components:
HRIS:
At its core, Human Resource Information System consists of a database and it facilitates tracking of the information in the database and its analysis through report generation.
HRMS:
The Human Resource Management System comes with the complete set of functionalities for the management of every HR aspect that exists. It performs the important function of integrating information from different modules into a central database that is universally accessible.
3] Key Capabilities:
HRIS:
Time and Attendance
Payroll
Incentives and Compensation
Tracking information and maintaining records
HRMS:
Along with the functions performed by the HRIS as mentioned above, the HRMS performs the following additional functions:
Performance Analysis
Training
Recruitment
Benefits Administration
Insights for strategic decision making
4] Scope
HRIS:
It is recommended for small organizations with very basic HR functions to cater to.
HRMS:
It is more comprehensive than HRIS and is thus recommended for larger organizations with more employees and a wider range of HR functions to cater to.
The Final Word:
So, we can safely conclude that while Human Resource Information System focuses only on the quantifiable aspects of HR operations – the ones that involve numbers and data, Human Resource Management System is a more complete package. In other words, HRIS is a sub-set of HRMS.
The best providers of HRMS software today, such as GreytHR, Beehive, Digital HRMS and Zoho People, offer organizations the option to choose from a set of modules, to create a HR software that is in alignment with their business needs. Also, today we have vendors that provide HR software that are cloud-based with features that redefine the way we look at HR functions. What you choose depends on your organization’s needs. However, the bottom line is that your organization needs a HR Software to stay ahead of the game, so you must choose one. Whether you choose a HRMS or HRIS, makes little difference.