HCM vs. HRIS vs. HRMS – What Do Employers Need to Know?

Human resources (HR) departments are a crucial part of any organization. They are responsible for managing the company’s most valuable asset – its employees. In recent years, technology has revolutionized the HR industry, and new terms such as HCM, HRIS, and HRMS have emerged. In this blog post, we will explore the differences between these three terms.

HCM (Human Capital Management)

HCM is a comprehensive approach to managing human resources. It includes various processes and practices that organizations use to manage their employees. HCM includes everything from recruiting, hiring, and onboarding to performance management, employee engagement, and career development. HCM systems aim to maximize the value of the company’s human capital by improving employee productivity, reducing turnover, and fostering a positive work culture.

HRIS (Human Resources Information System)

HRIS is a software solution that automates HR processes, including record-keeping, payroll, and benefits administration. HRIS systems centralize employee data and streamline HR workflows, allowing HR teams to be more efficient and productive. HRIS systems are typically used to manage day-to-day HR operations and administrative tasks, such as tracking employee attendance and managing employee benefits.

HRMS (Human Resources Management System)

HRMS is a more comprehensive system that combines the features of HCM and HRIS. It includes all the features of an HRIS, such as record-keeping and payroll processing, but also includes talent management and strategic HR functions. HRMS systems are designed to help HR teams manage the entire employee lifecycle, from recruiting and onboarding to career development and offboarding.

In summary, HCM, HRIS, and HRMS are all related to managing human resources, but they differ in terms of their scope and functionality. HCM is the most comprehensive approach to managing human capital, while HRIS is focused on automating HR administrative tasks. HRMS combines the features of both HCM and HRIS to provide a comprehensive solution for managing the entire employee lifecycle. Choosing the right system depends on the organization’s needs, goals, and budget.

GTM’s HCM Platform Ranked #1

Sapient Insights recently conducted its Annual HR Systems Survey, the world’s longest-running and most widely participated HR technology survey. More than 2,500 organizations participated to detail their technology use, vendor satisfaction, user experience, and top challenges. The results help thousands of HR and business leaders make better-informed decisions.

isolved People Cloud, GTM’s HCM platform, ranked #1 for:

• Payroll: ranked number one as a payroll system that you can trust and is easy to use.
• Employee Experience: top-ranked in both user experience and satisfaction, meaning you can rely on the end-to-end platform to reduce the work of your HR team, and help better manage your employees to keep your business on track.
• Time Management: ranked number one for helping make sure the right employees are in place, getting the job done, and keeping your business running smoothly.

The choice is simple – when it comes to the heart of your HR systems, isolved People Cloud is consistently ranked #1 by those who use it to make their businesses successful. Request a free quote to learn more.