HRIS vs HRMS: What Is The Difference?

Understand the core difference between these important HR software solution types. This HRIS vs HRMS guide will help you to make your decision while signing up for the system you need.
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HR professionals often come across these two terms, HRIS (Human Resource Information System) and HRMS (Human Resource Management System) and they tend to use it interchangeably. But both these systems are different from each other and their approaches vary. 

So, before we explore their differences let’s first begin by understanding what they are, how they work, and what are their features. 

What Is HRIS?

Human resource information system, also commonly known as HRIS is a cloud-based solution that is used for tracking, data entry, and managing all human resources operations within an organization. This advanced system offers seamless access to an actionable database that helps ensure the smooth running of HR processes

How Does HRIS Work?

Generally, human resource information system provides an organization’s HR team a central database where employee data can be managed and stored. This allows HR teams to fill in personnel data of employees into the system and access these data from anywhere. 

Key Features Of HRIS

Listed below are some of the core features of HRIS:

  • Stores information about personnel, policies, and procedures in one place
  • Manages recruitment and talent relationship 
  • Automate employee onboarding 
  • Performance evaluation and management 
  • Employee self-service 
  • Time and absence management 
  • Training programs
  • Workforce analysis

What Is HRMS?

An HRMS is like an all-in-one solution for managing everything associated with human resources. It includes all the features offered by an HRIS and the best part is it even offers additional features, such as time management, payroll, and labor management.

It’s basically like a flexible system that can be customized to fit the specific needs of every organization.

These systems are also perfect for dealing with various compliance standards and laws in different countries. For example, they can help with things like taxes and making sure employees get their salaries directly.

Apart from that, HRMS also has advanced functionality that helps in analyzing data. It can create reports and integrate with other software the company uses. Some of HRMS tools can even provide insights into how employees support the company on social media and other platforms.

How Does HRMS Work?

HRMS automates HR tasks, seamlessly organizes employees’ data, and generates curated data-driven reports. This all-in-one system helps the HR team get rid of paper documents, making things work efficiently and effectively.

Key Features Of HRMS

Listed below are some of the core features of HRMS:

  • Common HR feature that manages employee benefits
  • Time and attendance features handle absences and ensure compliance
  • Analytical functions involve real-time reporting, predictive abilities, and financial analysis
  • Onboarding feature that uses digital forms manages reports, and handles probation
  • Compliance management
  • Learning and development features manage courses and update training materials
  • Payroll feature, including batch processing, online payroll, and overtime record keeping

HRIS vs HRMS: Comparison Based On Different Parameters 

Here’s a close comparison of human resources information system and human resource management system: 

Focus & Scope Human resource management system have a much wider scope and tend to focus on all the HR-related tasks. It manages employees from the time of their recruitment to retirement. Also, HRMS includes functionalities of HRIS. HRMS deals with dynamic data (information that changes frequently). These data include leaves, ESS, attendance, payroll, performance, appraisal, rosters, meetings, and other schedules.
Type of data it deals withHRIS deals with static data (information that does not change often). These data includes, permanent or current home address, contact details, educational qualifications and credentials, tax details, official ID numbers, tax or official benefits and other such information.HRIS deals with static data (information that does not change often). These data includes permanent or current home address, contact details, educational qualifications and credentials, tax details, official ID numbers, tax or official benefits and other such information.
Benefits An HRIS puts all the important info and data in one location, making it easier for the HR team to find and understand. This helps them make better decisions about hiring, firing, salaries, promotions, and other HR stuff. One of the notable benefits of HRMS is that it keeps employee information safe. Also, when HR tasks are automated, there is a less likelihood of mistakes, which keeps employee data accurate. Also, having fewer HR systems makes things simpler for both employees and HR teams.

Which HR System To Choose?

Now after comparing both the systems you must be wondering which will be a suitable option for your organization. While deciding between HRMS and HRIS, start by figuring out your exact needs.

Do you want a comprehensive solution that handles all HR tasks, including payroll and advanced analytics? Or are you after a simpler solution to keep you and your HR team well-organized, focusing on building top-notch teams?

The answers to these questions will help you figure out which HR system will be appropriate for your organization either an HRIS or an HRMS.


What Is HR System?

An HR system is a solution that is designed to help HR teams carry out core tasks associated with human resources management. These tasks include managing employees, processes, policies and procedures. Also, a point to be noted it comes under the workforce management software. 

What Are The Benefits Of Having A HR System?

HR system offers several benefits, such as:

  • It helps increase the productivity of your HR team by automating manual HR tasks. 
  • It enhances the employee experience by providing easy access to relevant information. 
  • The system also ensures security by protecting employee data with encryption measures, safeguarding against unauthorized access and potential security threats. 
  • HR system’s AI features help minimize errors in tasks like payroll management, reducing the risk of human errors and enhancing overall accuracy.

Who Uses HR System?

HR systems are used by businesses of all sizes, small to mid-market and large enterprises. In organizations, these systems are basically used by HR professionals, managers, sometimes executives, and senior management. 

How Much Does An HR System Cost?

On average HR system costs around $3 to $3500 per employee/ per month for subscription-based plans and $500 to $100,000 plus (one-time fee) for perpetual licensing plans. 

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