Fundamental Differences Regarding HRIS, HCMS, and HRMS

One of the keys to a successful company is having good Human Resources (HR). However, to have good HR, the company must also have good employee management and monitoring system. That's why many HR software has emerged recently, which generally can be classified into three names, namely HRIS, HCMS, and HRMS. What is the difference between the three?

Even though they look similar, HRIS, HCMS, and HRMS have different characteristics and functions.

Human Resource Information System (HRIS)

HRIS is a comprehensive or comprehensive HR system with deep functions. However, HRIS does not have a standard procedure for creating categories so that HRIS can be applied to all HR solutions. Although it is a very old term and is hardly used anymore, HRIS covers a lot of things that eventually apply to HCMS and HRMS.

HRIS software includes the following: core HR functions, compensation, training, recruitment, workflow, benefits administration, reporting, and self-service. It can be said that HRIS is the most basic system and was later developed by HCMS and HRMS. Basically, HRIS is suitable to be applied in companies with any industry because its main function is to manage employees, which also includes policies and procedures.

This system can be further divided into three, namely operational, tactical, and strategic. As the name implies, Operational HRIS can manage only the operational scope. It has an integrated module for professionals to manage all HR needs, such as employee administration and attendance management.

Meanwhile, Tactical HRIS ( tactical ) has the ability to manpower planning or employee management plans such as recruitment and development. In contrast again with Strategic Human Resource Management ( strategic ), which has modules to match the company's strategy and employees, namely the performance review system and alienation objectives ( performance and strategy link ).

Human Capital Management System (HCMS)

The first form of development of HRIS was based on the desire of companies to provide a more detailed system for their employees. Thus, HCMS has all HRIS systems with certain additions, namely orientation and onboarding, performance management, position control, leadership relay ( succession ), salary planning, global HR, and analysis.

So, if your company is planning to take serious steps in developing employee talent, then HCMS is suitable. It doesn't matter what your company is in.

Human Resource Management System (HRMS)

Different from HRIS and HCMS, HRMS is a system that falls between the two. So, the HRMS can cover all HRIS in addition, or include all HCMS with additions. When described, HRMS in general has the following: all HRIS functions, payroll ( payroll ), time, and wages. Alternatively, all the functions HCMS (which already includes functions HRIS) with additional payroll ( payroll ), time, and wages. Given the wide coverage of HRMS, this system is usually more suitable for use in companies with a large number of employees. Medium to large-sized businesses will be suitable to use this HRMS.

The payroll system is one very important thing in a company. The reason is that salaries cannot just be given to an employee. There are many components of the calculation, such as income tax, health insurance, overtime pay, and so on. Not surprisingly, this can be very time consuming for the division concerned (generally personnel or/and finance).

Indeed, you can hire the services of a third party to do this, but having your own system will be easier and more efficient for you in managing HR. Besides being able to be monitored directly, you also don't need to pay back money for this arrangement. HRMS can help you well.

The need to use HR software

Before getting into the differences between each system, it would be nice for you to know the importance of using HR software. Its various features will facilitate various HR jobs, especially those related to administration such as employee attendance and leave, payslips, to taxes. All can be done using one systematic platform. Moreover, because it is cloud-based, you and your employees can access it from anywhere and anytime.

With these conveniences, you will save a lot of working time so you can use it for other, more important things. In other words, HR software can help you and your employees work more effectively and efficiently.

No matter how large your business is now, HR software can provide useful assistance, especially for employee-related matters. So that the implementation can be maximized, make sure you choose HRMS Software that has guaranteed quality.