Internal HR systems are valuable for any company. They make the more tedious aspects of human resources more manageable, increasing efficiency across the board.
Not sure which type of HR system is right for you? This blog will break down the confusion and help you decide whether an HRIS, HCM, or HRMS is suitable for your organization.
HRIS
HRIS stands for Human Resources Information System. These systems are more data-driven, focusing on personal contact information, salary, benefits, paid time off requests, and more.
HRIS cloud HR software is fantastic for keeping standard data safe and organized. It can automate processes and workflows, ensuring compliance and streamlining many HR duties.
HCM
An HCM is Human Capital Management. This type of HR system is about managing employee growth and fostering growth. It centers on strategic training, employee development, and overall culture building.
Human capital is your company's most valuable asset, and HCM systems are all about protecting it. With an HCM, you can follow various aspects of an employee's lifecycle. That includes onboarding, retention, performance evaluations, and more.
HRMS
HRMS stands for Human Resources Management System. This cloud HR software is comprehensive and all-encompassing! While HRIS and HCM focus on employee data and human capital, respectively, HRMS does both. These systems typically contain capabilities of both alternatives, serving as an all-in-one solution for larger companies.
HRMS software typically has features for:
Payroll
Recruitment
Compensation
Benefits
Scheduling
Onboarding
Professional development
Reporting
HRMS platforms are fantastic for gathering analytics and using HR reporting. They usually also act as centralized data hubs with multiple integrations to everything from payroll processing to employee self-service.
Which Internal HR System is Right for You?
Many people view these various systems as the same. But the truth is that they have unique functions, processes, and features. Understanding what each option brings to the table can help you decide on a tool that can increase productivity and streamline HR efforts.
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