What is The Difference Between HRIS And HCM?

By January 31, 2022 No Comments
What is the difference between HRIS and HCM

Modern HR operations involve using platforms, tools, software, and systems that help automate organizations’ HR processes. HRIS and HCM are fantastic HR technologies used by companies for efficient recruitment and human resource management. Individuals usually get confused with HRIS and HCM and think both the HR technologies function similarly. This is not the case. Both HRIS and HCM are distinct HR automation technologies having specific functions and goals. This article will help you understand the difference between HRIS and HCM.

What Is HRIS?

Human Resource Information System (HRIS) refers to the HR software that manages the human resources operations of businesses. These operations primarily focus on policies, employees and hr procedures. A Data-driven software, HRIS represents the database that comprises all employee data such as personal information, work history, etc., offering employee information and insights. The software is primarily utilized for employee data entry, data tracking and data management of the entire HR operations of companies.

Let’s take a look at the critical features of HRIS:

  • Database management
  • Payroll Functions
  • Attendance Management
  • Time and Labor management
  • Talent Acquisition And Retention
  • Benefits Management
  • Employee Interface

What Is HCM?

Human Capital Management Software (HCM) refers to employee management in an organization. The HCM payroll software prioritizes organizational competency and focuses on workforce acquisitions, employee management, and optimisations. The software provides critical tools for talent management, talent acquisition, and talent organization. It automates vital HR functions related to onboarding, performance tracking, onboarding and compensation. This helps the HR team carry out their responsibilities in an optimized and structured manner.

The HCM payroll software comprises of various tools such as:

  • Payroll documents
  • Timeline Sheets
  • Productivity Analytics

The HCM can be tailored for every organization for supporting organizational activities and actions. It offers a strategic approach involving all practices, processes and systems used for employee management and development.

Take a look at crucial HCM features:

  • Workforce Acquisition

  1. Recruitment
  2. Applicant Tracking System (ATS)
  3. Onboarding
  4. Requisition Management
  • Talent Management

  1. Time And Attendance
  2. Payroll Process And Management
  3. Performance Management
  • Talent Optimisation

  1. Learning And Development
  2. Competency Tracking
  3. Employee Training
  4. Career Pathing

HRIS VS HCM: The Key Differences

Although HRIS and HCM have multiple similarities, the crucial differences make them two different HR technologies.

HRIS offers assistance with recruiting, leave management, workflows, self-service portals, compensation management, personnel tracking and more. These are significant organizational needs that go beyond acquisition and data management.

Core HCM offering consists of all HRIS features combined with employee performance tracking, employee training, learning and development, analytics management (from HRIS data), workforce paling regarding employee talent mapping and more.

So, HCM includes HRIS features but is more complex and comprehensive than the former.

With the HCM payroll software, hr personnel can fully engage on employee-specific levels with employee oriented functions like employee performance, analytics, and onboarding.

HRIS offers more fundamental-level employee data.

The Scope Of HCM Software

Today, HCM software is incorporating payroll and labour management within their functions and thus expanding their control by including HRMS offerings.

A critical point to remember is choosing a reliable HCM payroll software provider who does not solely dub themselves as HCM vendors to elevate their brand and expand clientele.

PeopleWorks is a reliable HCM software provider that promises to incorporate new-age HRIS solutions within their software and offer a robust human capital management software that focuses on intelligent employee data utilization resulting in boosted productivity and company revenues.

The software aims at simplifying HR workings within an organization.

The Choice Is Yours

Choosing between HCM and HRIS software depends wholly on your specific company needs.

Understanding the primary difference between HRIS and HCM is a good start, followed by comprehending your unique organizational needs, which helps you make the right decision.

Ask the following questions for determining the best choice:

  • What are the various issues the current HR processes or HR software face?
  • What are your company’s central HR function needs?
  • How do you manage employee data?
  • What is your onboarding process like?
  • Is there a need for talent management in your organization?
  • What HR technology your organization currently uses?

Peopleworks is here to streamline all your Human Resource Needs!

Selecting the right HR software helps HR managers streamline organizational operations, cultivate productive employee relationships and drive the organization towards growth and productivity.

Whether you select HRIS or HCM, the decision should carefully analyze your HR needs and growth plans.

PeopleWorks is here to offer dedicated support for helping organizations and companies select the right hr software and provide the right hr software solutions

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