What is Human Resources Management Software (HRMS)?

 

What is Human Resources Management Software (HRMS)?

Human resources software is one of the most important tools for personnel management in an organization. These systems are characterized by having very specific functions for those responsible for human resources (HR) departments. Although many companies use it primarily for employee payroll and salary management, there are many other tools that make any human resources software a very valuable tool for a company.

What does HRMS software do?

In general, human resources software, or human resources management ERP software, is used in companies that have an HR department or a person in charge dedicated to planning and managing personnel management. Among the functions of this department can be found the attention to the personnel, the registration of absences, leaves and hours worked, the management of payroll and salaries, the assignment of vacations and other direct requests of the personnel. In addition, they can also take care of the various selection processes for vacant positions, employee performance appraisals or promotion planning.

 

However, not all human resources software programs include tools to address each and every one of the above functions. The HR Software Guide includes a comparison between different types of human resources software.

 

HRMS vs. HRIS vs. HCM: what difference does it make?

The terminology used by both human resource software vendors, as well as experts in the field of human resource management, causes that there is no clear distinction between so much terminologies. First of all, you have to show the difference between each of these acronyms:

·         HRMS: Human Resources Management System (System HRM)

·         HRIS: Human Resources Information System (Information System Human Resources)

·         HCM: Human Capital Management ( Management of human capital )

 

Just by their names, it seems that they present slight differences between them. However, not even world experts in Human Resources Management Software such as Josh Bersin, Naomi Bloom, Jason Averbrook or Bill Kutik are able to agree on the definition of each of these acronyms. In the following image you can see the main differences established by Mike Maiorino for these three definitions of human resources software:

In any case, whatever term a manufacturer or supplier uses, they all refer to the same essence: human resource management software. The only way to understand the differences is by focusing on the functions of each product. To differentiate and examine features, the HR Software Guide  includes a comparison of the features and functions of different HR software packages.

 

HRMS software for SMEs

As we have already mentioned, most HR programs focus on companies with a large number of staff. However, there are also providers that focus on the other side of the business spectrum: SMEs. The human resources software for these types of companies is usually in the cloud, in the form of E-HRM, and they usually offer more specific functions or even aimed at specific sectors of activity.

 

In these cases, it is better to compare the functions offered by the different systems and compare them with the internal needs of the company, as the price of human resources software can be a serious blow to the annual budget of any company. You can find a Quote Calculator from different HR software vendors in the HR Software Guide.