What's the difference between HR, HCM, HRIS, HRMS?

There are lots of other acronyms being used to describe HR software solutions such as HRM (Human Resource Management), TMS (Talent Management System), ATS (Applicant Tracking System) and LMS (Learning Management System), but the three most commonly used terms to describe HR, Payroll and/or Talent Management software are:

• HRIS (Human Resource Information System)

• HCM (Human Capital Management)

• HRMS (Human Resource Management System)

So, what’s the difference?

HRIS software is designed to manage people, policies and procedures and is usually country specific.

HCM software includes every element of an HRIS but adds Talent Management and global capabilities such as multi-lingual, multi-currency, country-specific formatting and possibly localization.

HRMS software typically covers every element of an HRIS and may include the capabilities of an HCM. Because the HRMS business is so massive and covers such a wide range of employee size and functional requirements, not all HRMS providers have a Talent Management component included in their offering, the two characteristics that you should always find are Payroll and Time Management.

Conclusion

Now that the definitions are more clear it’s easier to understand why the SAP solution is more correctly addressed as HCM.

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Cheers, Andrea