Difference between HRMS and HRIS?

Difference between HRMS and HRIS?

Unfortunately, as straightforward as these terms appear to be, there is some confusion. For example, what do all these abbreviations mean, and what is the difference between HRIS and HRMS? How do you determine which one is the best for your business?

You’re likely looking for HR software or HR suites. The terms HRIS, HRMS, and HCM, are probably well-known to you.


What is an HRIS?

Difference between HRMS and HRIS?


Most HRIS purists agree that it’s the most compact HR software bundle. HRIS platforms can be set up quickly and provide the essential HR applications, and functionality companies require.

HRIS software is an effective tool to help companies manage and organize employee-related information such as demographics, benefits information, and performance reviews.


Although the features of HRIS software applications may differ, however, the majority will contain the following programs or features:

Feature of HRIS software

HRIS software has the following features

Tracking Systems For applications

These systems are helpful in Improve Recruitment efforts: Post open positions, track and get applications, and create resume repository sites.


 HRIS may also comprise software that automatizes the onboarding process, For example, checklists and workflows that can improve the new hire experience.

Leave And Absence Management

Manage Employees can take time off to rest. Unplanned absences as well as other types of leave

Management Of Workflows

Create and manage business workflows to improve productivity.

Administration Of Benefits

The health insurance of employees and 401(k) plans can be managed by you. You can also assist employees in keeping track of pertinent details.

Compensation Management

You can set up salaries and paid time off, overtime compensation, and other forms of compensation.


Offer continuing education and training programs to your employees.


Your employees can be allowed access to the portal. Use E-Sign to sign complete forms and manage their information.

Tracking Of Personnel

All pertinent information regarding employees can be centralized in one place.

The broadening capabilities are the primary reason why people are confused between HRIS and HRMS. Many functions that were only accessible only in HRMS software are now available in HRIS software.

What Exactly Is An HRMS?

Difference between HRMS and HRIS?

The HRMS software allows companies to oversee every aspect of their HR. These software solutions include all the features of an HRIS and add additional functions and systems (most specifically time as well as payroll, labor, and).

These systems can provide a global presence, for example. To accommodate specific areas, you can create silos for every country within your system.


Since laws differ between countries, HRMS software lets you adjust your workflow and employee management to conform to local laws.

One of the most noticeable features of HRMS software is its payroll management.

The software lets you establish direct payments and deposits for employees. In addition, taxation and other legalities may be dealt with automatically in the software suite.


A system that was previously thought to be present solely within HRMS was time and labor management. These systems allow you to assess the efficiency of your employees and the level of cooperation between them.

This will help you design better workflows and improve your ROI.


Another attribute that HRIS has encroached upon is analytics. Although the amount of analytics available in an HRIS versus

HRMS differs, most HRIS software provides some form of analytics. Some examples of these include employee advocacy.

For Example,

you can monitor your employees who are the most loyal brand advocates via social media shares, etc.


HRMS analytics tend to be more powerful. It is possible to roll up the metrics on different levels, including the country, branch, or even at the regional or regional levels.

You can also use these systems to generate your reports instead of using pre-made templates. The number of integrations that HRMS can support tends to exceed the standard HRIS.


Choose The Correct One


The distinctions between HRIS and HRMS are becoming blurred. The most crucial difference is between an HRMS’s global coverage and HRIS’s local sphere of influence. Examine all the features of the program to find the best solution for your organization.

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