What are the Different Types of HRIS Solutions? - HRIS Payroll Software
HRIS Solutions

What are the Different Types of HRIS Solutions?

By: Dave Rietsema

Types of HRIS Solutions

When looking into HRIS solutions, the acronyms and their attached definitions can become confusing. Not having a complete understanding of these terms can make it more difficult to recognize which software solutions will best benefit your company.

Vendors often speak of HCM and HRMS along with HRIS, using the terms nearly interchangeably. Marketing professionals and analysts may also speak of HRM, TMS, and ATS. Once all of these different acronyms and their meanings are understood, it is easy to see that it saves time to utilize the acronyms, but it can seem like a different language up to that point.

What Are HR Systems Managing?

The first step to understanding different software solutions is to understand what the systems are managing. HRM stands for Human Resources Management and may refer to both technological and human aspects of directing employee labor towards organizational goals on a broad scale. TMS stands for Talent Management Systems and may be used to more specifically direct certain organizational areas towards goals. ATS stands for Applicant Tracking Software and refers to managing the information compiled from prospective employees. Once these acronyms become clear, it is easy to see how different software solutions may be able to best manage each area.

What Are the Main HR Software Solutions?

The three main acronyms used to describe human resources management systems are HRIS, HCM, and HRMS. Each type of system has explicit capabilities and characteristics that may be best for different organizational needs. It is important to understand these differences prior to purchasing a new system.

HRIS Solutions

HRIS stands for Human Resources Information Systems. HRIS software is useful in managing the policies and procedures that provide guidance for employees. HRIS software also helps companies to keep employee information organized and accessible.

HRIS solutions typically have the capability to assist companies with the following:

HCM Solutions

HCM stands for Human Capital Management. These systems are usually slightly more comprehensive than HRIS systems, including most elements of HRIS systems but also having additional capabilities such as talent management. HCM systems often have the capacity to provide translation between multiple languages and currencies. Additionally, HCM solutions have features that can help companies with many aspects of planning. Salary planning, goal setting, budgeting, and succession planning can all typically be done with HCM systems. Analytics and performance assessments can also be used to track progress and make alterations to plans.

HRMS Solutions

HRMS stands for Human Resources Management Systems. HRMS solutions typically contain the features of HRIS and may contain some elements of HCM systems. Most HRMS solutions contain functions to assist with time and labor management while containing features that help to manage payroll. Besides these functions, HRMS solutions may vary widely. Some HRMS solutions may offer planning and assessment tools, while others may primarily focus on organizing employee information. Some may offer scheduling functions, while others may not. If looking into HRMS solutions, it is very important to be sure that the specific system offers all necessary features because of the great variety in these systems.

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