The main difference between an HRIS and an HRMS is scope. An HRIS usually handles core employee data and routine HR administration. An HRMS usually includes those functions plus tools for recruiting, performance, learning and other workforce needs.
HRIS, HRMS and HCM are three labels that software providers do not use consistently. The features included in a product matter more than the acronym.
HRIS vs. HRMS at a Glance
| Area | HRIS | HRMS |
|---|---|---|
| Main purpose | Manage employee data and core HR processes | Manage core HR plus wider workforce operations |
| Employee records | Yes | Yes |
| Payroll and benefits | Commonly included | Commonly included |
| Time, attendance and leave | Commonly included | Commonly included |
| Recruiting and onboarding | Sometimes included | Commonly included |
| Performance management | Basic or optional | Commonly included |
| Learning and development | Limited or optional | Commonly included |
| Succession and talent planning | Less common | More common |
| Reporting | Core HR reports | Workforce and talent analytics |
| Typical scope | Administrative HR | Employee lifecycle management |
What Is an HRIS?
An HRIS, or human resources information system, stores employee information and automates core HR processes.
An HRIS commonly supports:
- Employee records and personal information
- Job history and organizational structure
- Payroll data
- Benefits administration
- Time and attendance
- Leave management
- Basic compliance reporting
- Employee and manager self-service
An HRIS gives an organization a central system for employee data and reduces manual HR administration.
For example, an employee may be able to update a home address, request time off and view payroll information in one system.
What Is an HRMS?
An HRMS, or human resources management system, generally includes the core functions of an HRIS and adds tools for managing more of the employee lifecycle.
An HRMS may include:
- Recruiting and applicant tracking
- Onboarding
- Payroll and workforce administration
- Performance reviews
- Goal management
- Learning and training
- Compensation management
- Succession planning
- Employee engagement
- Workforce reporting and analytics
An HRMS is usually wider in scope than a basic HRIS because it combines administrative HR with talent and workforce management.
The Difference Is Breadth, Not Necessarily Technology
The difference between an HRIS and an HRMS does not necessarily relate to cloud hosting, company size or software architecture. It usually reflects how a provider defines the product's features.
For example:
- One provider may call software with payroll, benefits and time tracking an HRIS.
- Another provider may use HRMS for software with the same features.
- A product marketed as an HRIS may also include recruiting, performance management and learning modules.
Oracle states that providers often use HRIS, HRMS and HCM interchangeably. SAP describes HRMS as a wider system that includes HRIS capabilities and additional talent functions.
When comparing products, review the modules, integrations, reporting tools and implementation requirements instead of relying on the product name.
HRIS vs. HRMS: Which Should You Choose?
Choose an HRIS when your organization mainly needs to:
- Centralize employee records
- Automate payroll, benefits or leave administration
- Track time and attendance
- Give employees access to self-service tools
- Replace spreadsheets or disconnected HR systems
- Produce standard HR reports
Choose an HRMS when your organization also needs to:
- Manage recruitment and onboarding
- Run structured performance reviews
- Track employee goals and skills
- Deliver learning and training programs
- Manage compensation or succession planning
- Analyze workforce and talent data
- Connect more stages of the employee lifecycle in one platform
The right option depends on the functions your organization needs, not only its headcount. A small organization may need an HRMS for talent management, while a larger organization may initially need only core HR and payroll.
Is HCM the Same as HRMS?
HCM, or human capital management, is a wider term for the practices and software used to manage the workforce from recruitment through retirement.
Many providers use HCM to describe a cloud suite that includes HRIS and HRMS functions, along with workforce planning, analytics, compensation, performance and talent management. HCM and HRMS are often treated as equivalent product categories.
HRIS vs. HRMS: Bottom Line
An HRIS usually covers employee data and core HR administration. An HRMS usually adds recruiting, talent, performance, learning and wider workforce management.
Before choosing a platform, list the functions your organization needs. Then confirm which products support those functions, how they connect with payroll and finance systems, and what implementation support they provide.