HRIS vs. HRMS vs. HCM: What’s the difference?

The terms human resources information system (HRIS), human resources management system (HRMS), and human capital management (HCM) have many similarities. These terms broadly refer to comprehensive tools and strategies designed to manage an organization’s workforce and align its needs with its business objectives.

An HRIS helps HR teams manage essential functions through team member data storage and workflow automation. Teams use HRIS software to help keep track of critical HR functions, including payroll details, benefits administration, attendance tracking, and document management.

An HRMS enhances the basic functions of an HRIS by incorporating advanced management and analytics capabilities. HR professionals, team members, and managers can use an HRMS for core HR functions, tracking performance management metrics, streamlining the employee onboarding process, and improving talent management.

An HCM balances logistical HR processes and data with high-level strategy and planning designed to move the organization toward larger goals. When organizations want to drive economic value from every team member, they often turn to an HCM.

Are HCM and HRIS the same thing?

While they are similar systems, an HRIS focuses on basic HR tasks, while HCM systems offer support for more advanced HR needs.

What is the difference between HCM and HRM?

HCM describes a broader suite of activities and functions that aim to manage talent, plan the workforce strategically, and ensure alignment between HR activities and business goals.

What are the two types of HCM?

HCM includes strategic HCM and operational HCM. Strategic HCM focuses on long-term workforce planning and performance management, while operational HCM centers on administrative tasks like tracking attendance.