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HRIS vs HRMS: What Is the Difference Between Them?

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Enable Group | Jul 19, 2022

For Employers ● 3 min read

Numerous administrative and strategic duties are necessary for efficient human resource management. If your human resource management staff completes these activities by hand, it will take their precious time and attention away from other vital responsibilities. Additionally, a manual approach to HR functions is more susceptible to errors in procedure and data.

Hence, businesses are highly advised to utilise software to automate their HR services and increase productivity and accuracy. However, the most critical question many companies often face is which system – the human resource information system (HRIS) or the human resource management system (HRMS) – should be chosen? This article briefly explains the difference between the two HR systems and which one is usually better.

What is an HRIS? 

A human resource information system (HRIS) is a subset of human resource management systems. Although the words HRIS and HRMS are sometimes used interchangeably, there are some crucial distinctions to be aware of. An HRMS works with both quantitative and qualitative data, while an HRIS exclusively deals with quantitative data.

Payroll, time and attendance monitoring, accounting and bookkeeping tasks, workflow automation, and benefits management are often the main areas of concentration for HRIS systems. It excludes additional components present in an HRMS, such as onboarding and training, as well as performance reviews.

A simple employee self-service feature that gives employees access to key regulations and workplace handbooks is frequently included in HRIS platforms. Additionally, they may offer features that enable staff members to access and alter personal information, such as their address and other contact information.

What is an HRMS?

An all-inclusive solution, payroll HRMS enable businesses to manage every facet of their HR. It has all the features of an HRIS and is even enhanced with different systems and functionality. For instance, these systems frequently provide a global presence. To serve workers in a particular place, you might designate country-specific silos inside your system.

Payroll administration is HRMS’ most notable function. You may use your software to pay your staff and set up direct deposits. Additionally, your program may automatically manage taxation and other issues. You can monitor the level of collaboration and productivity among your staff using the time and labour management system in HRMS.

Analytics is another element that has been embedded in HRMS systems. Although the level of analytics offered by an HRIS and an HRMS varies, many HRMS programs provide some kind of advanced analytics. An illustration of this is employee advocacy. Social media posts allow you to track and determine which of your staff are your most devoted brand ambassadors.

Which is the right solution for your company?

The distinction between HRIS and HRMS is becoming increasingly hazy due to the similarities in their features and functionalities. The most obvious contrast between an HRIS and an HRMS software lies in their scope. While HRMS systems usually have a global range, HRIS usually remain local. Before selecting the best option for your business, you should consider each program’s scope and features.

If you only require the most fundamental HR features, an HRIS can typically do the job. However, before choosing an HR software package, ensure that you thoroughly examine every vendor’s scope and features for their software solutions. One vendor’s HRIS software may already be another’s HRMS. It also boils down to selecting the best and most reliable provider for your HR software needs.

Conclusion

Understanding the distinction between HRIS and HRMS systems is critical to picking the appropriate HR software to address your HR demands. After reading this article, you should better understand the seemingly subtle but significant distinctions between HRIS and HRMS.

For the best and most trusted HR software and HR services in Singapore, Enable Consulting is the one you need. We are a reputable HR consultant in Singapore offering a wide array of efficient and economic outsourced HR services, ranging from HR consultancy and advisory to HR systems. Do not hesitate to contact us anytime to learn more about how we can help improve your HR functions and discuss your requirements.


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