Is There a Difference Between HRIS and HRMS Solutions?

Human resource information systems (HRIS) and human resource management systems (HRMS) typically refer to the same category of software solutions. Those solutions offer powerful capability to a company and provide many desired tools and features. With the implementation of a robust HRIS/HRMS, a business can experience increased productivity, profits, and overall, a more efficient business model. Tools are available to automate time consuming processes, record data, predict market trends, and organize employee information.

HRIS Systems

These applications are defined as software used by HR to collect and track information about employees. The solutions were originally designed as database applications or a series of inter-related databases that could collect, filter, and report data. That data, in theory, could be exported to any number of HR applications for processing. In their original concept, HRIS solutions did not have extensive transactional functionality. Much of the data would be imported from other applications, filtered, sorted, updated, and then exported to another application.

HRMS Systems

These applications were originally designed to combine different HR management functions, including benefits administration, payroll, training, and performance analysis, into a single solution and are associated with managing a business to operate efficiently and produce the highest profits. Powerful HRMS software solutions are available, for example, to automate most processes involving financial records and employee attendance records to reduce lost profits due to undetected discrepancies. The systems’ management functionality promoted efficiency and enabled more streamlined workflows.

The Real Difference Between HRMS and HRIS is…

So, according to those descriptions, HRMS applications would be more robust than HRIS solution software. In reality, that is not the case. The terms have become interchangeable and a figment of the marketing department’s subjective imagination. In the last few years, the trend has been towards HRMS based on a sense that it describes a more comprehensive solution. It doesn’t matter that there are HMIS products with all the same functionality. Needless to say, for companies considering the purchase of HR software, decide what functionality you require, and then, compare the features of the different software solutions you are considering. Do not base your research on whether the software is described as an HRMS or HRIS solution.

Both Are Powerful Solutions

HRIS/HRMS systems are useful for collecting data and creating organized databases that can be searched easily and quickly for required information. Financial records, transactions, customer reports, and employee information can all be easily stored and organized with these powerful systems. Multiple databases can be consolidated into a single, centralized database for greater accuracy and ease of access. The systems analyze the data in real time to predict trends and suggest strategic initiatives. For companies competing in fast-moving markets, these systems provide current information to allow more informed decisions to be made quickly.

These systems vary depending on the vendor and specifications the individual system might have. Some systems are developed for specific industries and proper research should be conducted before settling on a particular system to ensure the maxim benefit and return on investment is attained. Implementing a HRMS/HRIS solution can be costly and time consuming – take your time and get it right.