Types of HR Software- HRMS, HCM and HRIS Fully Explained

There are various kinds of HR technology that makes HRM much easier than it was a decade back. However, the concept of HRMS, HCM and HRIS can become very confusing. Today we look at each of these software types closely and see how they help us to get complete HRM solutions.

Human Resource Information System (HRIS)

Human Resource Information System (HRIS) mainly deals with managing employees, processes involved with employees and regulation of policies. The HRIS software deals with all sorts of information related to employees. Some of the major services that HRIS software provide are listed below:

  1. Recruitment– Recruitment is made easy with HRIS. It allows applicants to apply online, provide online tests and creates candidate profile with options to add private notes. You can keep track of all the recruitment details through HRIS.
  2. Benefit Admin– You can administrate all the benefits or deductions from employee portfolio. You can see the lifecycle of employees and keep track of all the benefits they are due to achieve.
  3. Attendance Management– This HRIS feature lets you keep track of all the employee shift and even assign shifts to particular employees. You can create attendance sheet very easily. It also helps employees to keep track of their own attendance.
  4. Self-service– Every employee has their own portfolio in the software. The HRIS software also has a central dashboard. This enables employees to update tasks and keep track of their own progress through the software. Employees can even communicate with each other via the software.
  5. Report Generation– Based on attendance, leaves, deadlines met, etc. you get specific reports or statistics. This helps you better analyze the efficiency of your workforce.
  6. Workflow– You can manage entire departments through this feature. You can set individual or team deadlines, goals and you even provide notes through the software. Reminders are enabled to inform employees when a deadline is close. It helps workflow to become much more systematic.
  7. Employee Training– You can upload training materials directly into the HRIS software. Whether it be training videos or resources, HRIS acts a database to store and manage all the training information. Like recruitment, you can take tests online and get updates on each training progress.

Human Capital Management (HCM)

Human Capital Management actually provides all the features of an HRIS. So all the services you get from HRIS, you get from HCM. However, it adds more features that focus on strengthening global capabilities and talent management. HCM helps your business to be compatible in a global format with its multi-lingual and country-specific guidelines.
Some of the features of Human Capital Management are listed below:

  1. HRIS– All the major features listed above are also included in the HCM software.
  2. Performance Evaluation– You can take feedback from team leaders and department heads and add that information to the employee portfolio. You can keep track of all the performance assessment, complains, and achievement of every employee through this feature. Thus you can evaluate performance much more easily and efficiently.
  3. Designation Management– This feature lets you keep track of all the open positions in your organization. You can add information to each post. All you have to do is select the vacancy position from the list of vacancies and update it when a recruitment has been made.
  4. Salary Planning– You can view salary history, plan increments and assign incentives from this feature. It also can help you keep track of tax deductions and other expenses incurred by the employee.
  5. Analytics– You can get a lot of useful reports from this feature such as the number of employees, the average age of the people who work in your organization, gender profile and much more. It gives you get an idea of which direction your HR team is moving and if you need to make any changes.
  6. Onboarding– The onboarding feature relieves HR managers from a lot of paperwork and saves their time. Once new employees have access to the software, they get automated welcome messages, orientation materials and they can contact HRM team if they have any questions.
  7. Global Compatibility Development– If you are global organization this is particularly helpful for you. This feature provides multi-lingual facilities. Not only that, some HRIS software helps with various currency calculations.

Human Resource Management System (HRMS)

Human Resource Management System is the complete package. It provides all the facilities of HCM software. Since HCM software provides HRIS facilities, HRMS software does too. However, practically all software does not provide all the benefits of HCM and is subjective to which software you are buying. HRMS software provides further benefits compared to HCM and HRIS which are listed below:

  1. HCM– All the features of HCM mentioned above are included available in HRMS.
  2. Payroll Management– Not only can you plan salaries but also manage payrolls with HRMS. You can create account heads for assets, salary and tax deductions. Creating pay calendars are useful for payment related reminders. You can even specify payment methods through this feature.
  3. Time Tracking– Time tracking is particularly helpful when you have freelance, part-time, contractual and full-time employees all working at the same time. Employees have a specific sign in and sign out time so you know exactly how much time they have worked. This makes assigning tasks and payments much simpler and well-organized.



It is very important to understand the functions of these software to know how to implement them correctly in your organization. As the HR industry keeps evolving, HRM solution software are no longer a thing in the future. The solutions these software offer are practical and much needed. Have a look at our post on which HRM software features you need in your business to further understand which software you need!