What to look for in HR Solutions

Human resources (HR) software has come a long way from on-premises payroll. Far
from tracking time and attendance and making sure everyone gets paid on time,
modern HR solutions automate what used to be time-consuming core HR processes
and help HR teams shift to a talent management and employee growth model.

When considering an investment in an HR solution, it’s helpful to learn how HR

software can help you reach your goals. Once you understand what HR apps are
designed to help you accomplish, it’s easier to find one that best suits your needs.

HR software acronyms made simple

While researching HR solutions, you’ll encounter three primary acronyms: Human
resources information system (HRIS), human resources management system (HRMS),
and human capital management (HCM).

The most important thing to know about the various kinds of HR software is that the
acronym is not as important as the features and capabilities offered by each solution.
That said, there are some general rules of thumb that can be applied to help you tell
the difference between the acronyms.

HRIS is a human resource information system, HCM is a human capital

management tool and HRMS is a human resource management system.

HRIS is focused on personnel tracking and recruiting but also tracks

employee working times and monitors workflows to help the organizations’
development process.
Human capital management (HCM) refers to the management of
employees in an organization. This type of system suite includes all the
features offered by HRIS and adds talent management capabilities to it.

A human capital management system typically provides tools for talent

acquisition, talent management, and talent organization to provide ways to
better manage HR actions from onboarding to performance tracking,
compensation to offboarding.
 It holds together different features and tools such as payroll documents,
timesheets, productivity analytics – making it easier for companies to organize
and track everything employee-related. All in all, HCM can be tailored to each
organization to support its activities and actions. Hu

HRIS and HRMS

HRIS is an older acronym that is now interchangeable with HRMS. HRMS software
typically centralizes the organizational structure of your HR team and people
management by providing a single solution for managing people, procedures, and
policies.
Common features:

 Payroll

 Time and attendance tracking

 Employee scheduling

 Leave and absence programs

 Benefits management and administration

 Self-service employee portal

 Recruiting (Applicant tracking system)

 Basic people analytics

HCM refers to HR software that encompasses everything typically offered in an HRMS with
the addition of workforce planning and integration with customer relationship management
(CRM) and enterprise resource planning (ERP) business applications.

Human Resource Management Systems typically offers all the features of

an HRIS and functions of an HCM. When investing in an HRMS, you can
access everything included in an HRIS and HCM, plus a payroll system and
some more efficient labor management tools.

HCM software includes every HRIS feature under its umbrella and covers
talent management and global capabilities.
 It also collects different features and tools such as productivity analytics,
payroll documents, timesheets — making it easier for companies to
organize and track everything employee-related.

HCMS
Common features:

 All the capabilities of an HRMS.

 Full talent acquisition, including candidate relationship management.

 Onboarding resources.

 Employee performance evaluation tools.

 Learning management.

 Succession planning.

 Salary planning.

 In-depth people analytics for employee productivity and performance

 Workforce planning

The HR software can be an on-premise, cloud, or utilized as a Hybrid option

which makes it easy to use and gives quick access to information. 
 HR comprises three main components which make up the entire HR system.
HRIS Human Resource Integrated System and Management System are
interchangeable. HCM is the revised parameter as it includes the features of
HRMS, CRM, and ERP which makes it more comprehensive. 

The software is considered as the extension of the major ERP product of

Microsoft Dynamics. It has an intuitive interface, optimizes the
workforce with flexible configurations and streamlines integration
through various app services in the model. 

Questions to ask when evaluating HR

apps
Since HRIS, HRMS, and HCM mean different things to different vendors, it’s helpful to
focus on the goals you want to achieve with your HR solution rather than what that
solution is called. When comparing options, examine the features each solution offers
and ask yourself the following questions:

 Does this solution help me build, execute, and measure effective HR programs?

 Will this application meet our needs now, and grow to support our needs in the future?

 Does this solution help simplify the employee experience?

 How much training will be required to enable everyone on my team to use this software?

 Does this application integrate with the apps and tools we already use?
 The primary goals of HR software
Modern HR software, regardless of whether it’s an HRMS or HCM, is designed to
support four essential HR processes:

 Payroll administration
 Core HR programs such as benefits management, leave and absence and time and
attendance
 Talent experiences
 Workforce Planning and people analytics

In other words, its job is to digitize the employee experience while automating
workflow. This frees up HR team members from time-consuming manual tasks so
they can focus on being strategic business partners for the organization as a whole.

As valuable and important as these processes are, they’re far from all-inclusive in the
ways HR software can facilitate the success of your organization. When HR
professionals are supported by the right software, they can shift their focus to culture,
retention, and other high-value priorities.