HRMS software vs. HRIS software
Effective people management is crucial for business success. Tools like human resources management system (usually HRMS, sometimes just HRM) software and human resources information system (HRIS) software can streamline operations and enhance workforce management. However, the similarities often cause confusion, which can result in businesses missing the key features they need most. Choosing the right HR technology is essential to support growth and efficiency for Canadian businesses of all sizes.
Many small and medium-sized enterprises (SMEs) in Canada already leverage these systems to streamline their operations. This blog post clarifies the distinct features and applications of HRIS software and HRMS software, helping you make an informed decision for your business.
Human resources management systems (HRMS) and human resources information systems (HRIS) defined
To many people outside of HR, these acronyms don’t reveal much about the specific capabilities of each platform, so let’s take a moment to break down their functions. Explaining the main differences and key features of each system to business leaders and HR team members who use (or will use) these systems can help determine which HR software best suits your organization’s needs.
What is an HRMS?
Human resource management system: A human resource management system, or HRMS, is designed to support your employees throughout their entire lifecycle with your company. It acts as a comprehensive platform for managing a wide range of HR functions, including recruitment and onboarding, performance management, and learning and development. Consequently, the data within an HRMS software solution is dynamic and frequently updated.
An HRMS acts as a central command centre, helping HR leaders manage and track complex, jurisdiction-specific legal information, such as:
- Employment standards and compliance
- Overtime hours
The analytics and reporting features within HRMS software enable leaders to generate the insights your business needs to operate at peak efficiency.
What is an HRIS?
Human resource information system: The scope of a human resource information system, or HRIS, has a tighter focus than an HRMS. HRIS software primarily serves as a central database for managing core employee information, including:
- Personal information
- Contact details
- Employment records
Both HRMSs and HRISs play vital roles in streamlining business operations and increasing efficiency, which is why they’re popular tools for businesses looking for technology that can scale as they grow.
Differences between HRMS software and HRIS software
A significant difference between an HRMS and an HRIS is the level of functionality each platform offers leaders and employees.
HRMS software and data management
HRM software manages more complex and dynamic HR data across a wide range of functions. In contrast, HRIS software specializes in collecting, storing, and managing core employee information that changes less often.
HRMS software offers businesses greater data capability than an HRIS, using detailed analytics to manage and monitor critical, time-sensitive tasks like:
- Payroll processing
- Scheduling and attendance tracking
- Leave and absence management
This software empowers HR professionals to efficiently access, manage, and analyze this key information, turning raw data into actionable, strategic insights.
Managing HR data with HRIS software
HRIS software manages fewer information categories but still makes essential data highly accessible. It provides immediate access to employee contact details and documents and simplifies administrative tasks, such as assigning onboarding training to new hires or collecting digital signatures on HR documents. HRIS software can also include features like:
- Custom reporting tools and personalized dashboards
- Compliance and jurisdictional comparison tools.
In addition to this, some HRIS software allows you to design workflows for a consistent and efficient new hire process. It may also track employee information, training history, and time-off balances.
Streamlining HR duties with HR technology
HRIS software often includes employee self-service features, allowing staff to check time-off balances, record absences, and view hours worked. This can significantly reduce the administrative workload for your HR team.
In contrast, HRM software is typically designed for use by managers and business leaders who oversee workforce strategy and performance. It offers a broader range of applications than an HRIS and can also be customized to your specific business processes and needs.
Both systems use automation, but they do so for different purposes. Automation in HRIS software prioritizes improving administrative efficiency, reducing manual data entry, and minimizing errors. HRM software takes automation further by leveraging information and data from several data points to generate detailed reports and analytics, assisting with higher-level strategic decision-making.
Which system is best for your business?
Choosing between HRIS or HRM software depends on your organization’s specific needs, the jurisdictions where you operate, and the nature of your industry.
HRIS software: Ideal for managing core employee data and onboarding. It streamlines administrative workflows, saves time on information retrieval, and reduces the risk of manual data entry errors. It’s an excellent foundational tool for managing employee data and centralizing essential documents and records.
HRMS software: Offers a more comprehensive and strategic solution. Its data and analytics capabilities help leaders assess performance, optimize workforce management, and inform the daily decisions. For Canadian SMEs looking to optimize their operations, HRMS software is especially valuable. Overall, HRM software supports strategic decision-making across an organization with deeper insights and processes.
Choosing an HRIS or HRMS software
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