HCM vs HRIS vs HRMS: A Comprehensive Comparison of the Difference Between Them

When it comes to describing HR software — HCM vs HRIS vs HRMS — it can feel like a situation of “you say po-tay-to, I say po-tah-to.” Analysts, vendors and marketers toss the terms around everywhere you look, and it can be hard to distinguish them.

Such systems have become increasingly complex — and increasingly useful — in recent years. Along the way, however, the industry buzz phrases have created a guessing game. What do the terms really mean or represent? Does each system serve a unique need in HR management? If so, how are they different?

Even industry experts can’t agree on a universal definition. Plus, vendors don’t always clearly mark a line in the sand to help you distinguish if their solution is, for instance, an HRIS or HRMS. Talk about confusing.

Hopefully, this post helps straighten things out a bit. Choosing software is complicated enough without having to dance through the HCM vs HRMS vs HRIS debate.

By understanding what these terms represent and what you’re likely to get by investing in any of the systems they describe, you’ll have an easier time selecting the right solution.

The Basics

So far, the acronyms are flying around like Quidditch players before a match. Let’s take a moment to define them:

HRIS: Human Resource Information System
HRMS: Human Resource Management System
HCM: Human Capital Management

No matter which one you’re talking about, they all describe software that incorporates cloud computing, databases and other elements to create an overarching solution for handling workforce management needs.

If you’ve followed the evolution of human resources software at all, you’ll quickly notice these systems include elements that were once marketed as standalone solutions. Now, however, they’re bundled together to produce a streamlined human resources software offering.

Are HCM, HRIS and HRMS Interchangeable Terms?

It depends. Not super helpful, I know: but let me explain.

At a basic level HCM, HRMS and HRIS all describe the same thing. So, why are there separate terms? It’s most likely due to the rapid development of these technologies, which prompted the sudden creation of various terms all at once.

That said, there are sometimes subtle differences between the three types. Think of them like three different restaurants. Each one serves food, and while there’s overlap, their menus aren’t identical.

On top of that, vendors often use the terms interchangeably. That’s why it’s wise never to assume that a system that’s marketed using a particular term automatically includes certain features or offers specific capabilities.

In the past, the differences were more pronounced, so it was likelier that you could depend on the terms to mean what they said. Products were narrower in focus, and intended to serve only specific needs for companies. That naturally created a greater divide between the systems, since they focused on different areas.

As the industry has progressed, however, the gap has shrunk. Rather than opting for several solutions from different vendors to meet HR needs, companies have shifted toward the single solution model.

Today’s companies want an integrated suite of features from one provider. Why? It’s much easier to get unified, 360-degree visibility and streamline management. As companies become more complex and produce more data that requires tracking, it’s more of a hassle to deal with data silos and disparate systems.

Vendors have accommodated the market demands by extending the capabilities of their products to incorporate more functions. The downside is that you can never be quite sure what a term refers to anymore. And what something means today may not be the same a year from now.

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