What is HRMS?
History of human resource management systems
In the 1970s, larger companies were digitising some of their basic processes, particularly data-heavy and error-prone functions like payroll and accounting, but these early human resource management systems were limited in scope. By the 1990s, more powerful mainframe computing and the rise of the Internet allowed businesses to digitise and automate a wider range of core HR functions like records management, benefits administration, and recruitment workflows.
Today, with the growth of smart technologies and cloud connectivity, HR processes are no longer limited to transactional data. A modern HRMS can gather and integrate data to adjust reporting structures in real time, based on regional variances in infrastructure, laws, and regulatory compliance. These systems also automate workflow and leverage artificial intelligence (AI) to create smarter and more streamlined processes.
HRMS, HRIS, and HCM – making sense of the acronyms
Human resource management systems (HRMS), human resource information systems (HRIS), and human capital management (HCM) are HR terms that are often used interchangeably but have a few key differences.
An HRIS is typically built on a database of employee information and is used to support core HR processes that are more linear and quantitative in structure, such as payroll processing or time and attendance management.
In comparison, an HRMS is a more all-encompassing system that contains all the data management structures of an HRIS but also incorporates more qualitative and complex functionality and talent management. The best HRMS solutions use smart technologies, such as AI, machine learning, and cloud connectivity, to help personalise and intelligently automate functions.
HCM is an umbrella term that’s used to describe the broad set of practices and software an organisation uses to manage its workforce – from recruitment through retirement. An HCM system is often referred to as a human resource management system (HRMS) and includes HRIS software. Due to technological advancements and connectivity, businesses are now able to get a clear end-to-end picture of the workforce from all angles. This has helped companies realise the measurable value of prioritising the employee experience and using a people-first approach to underpin the HR administrative functionality that surrounds it. This more holistic approach represents a change in the prioritisation and management of HR processes.
By: Admin