Everything you must know about HRIS, HRMS and HCM - Differences and Similarities
                     Everything you must know about HRIS, 
HRMS and HCM - Differences and 
Similarities
HRMS, HRIS & HCM – What are their key 
differentiators?

• A vast array of HR technology is available in the market today. Hence, it has become 
extremely confusing for businesses to identify the right one. Understanding what these 
technologies are and how they can help is the most crucial step toward finding the best fit.
• One significant factor that results in the above-mentioned dilemma could be the lack of 
standard or defined rules for configuring an HR system. The configuration largely depends 
on what a company needs. For example, some companies would have outsourced their 
talent acquisition or payroll functions entirely but need others like data management, leave 
and attendance, record management, etc. They might choose to call this system an HRMS 
or an HRIS.
• HRMS, HRIS & HCM: What Do they Mean?
The terms like HRMS (human resource management system), HRIS (human resources 
information management) and HCM (human capital management) are quite loosely used in 
the industry, and hence spell a lot of confusion. Since there is no carved-in-the-stone 
definition, the same can vary from vendor to vendor.
• What is HRIS?
The narrowest among the three, HRIS is about managing and processing data related to 
employees and HR policies. It collates all the data in one place, so it is easy for HR to do 
their analysis and generate relevant reports. A standalone HRIS is ideal for smaller 
businesses.
• What is HCM?
Employees are a company’s vital assets or human capital. Therefore, a system that 
manages employees/their experiences, and optimizes their potential, is usually called the 
Human Capital Management system. It’s usually used for handling more strategic functions 
and not the regular administrative tasks.
• What is HRMS?
In addition to everything in HRIS and HCM, an HRMS offers time & labour management 
(TLM) and payroll processing. In other words, an HRMS is the broadest among all the three. 
It’s suitable for all types of companies, irrespective of their size. HR, as a function, has a 
series of tasks and procedures to be performed. Different modules handle these different 
tasks or sets of tasks. In this post, we have segregated the modules and also briefly 
explained all of them.

   Key Modules, Explained
• Time & Labour Management (TLM)
Records the exact number of working hours with punch-in and punch-out timings, tracks task-related 
timelines and enables quick approvals for optimising employee productivity.
• Payroll Processing
Gathers employee information, calculates deductions & payout, processes direct deposits to employee 
accounts and automatically updates payroll records.
• Recruitment
Allows HR to post JDs and candidates to review and post their resumes. It also includes an interview 
scheduler up to the hiring stage.
• Leave & Attendance
Performs regular tracking of attendance, data on LOP/reversal of LOP to payroll, workflow for leave 
application, approvals, updation of leave records, quota management, leave encashment and more.
• Workflows
Configures action items for different stakeholders to review and approve/reject different types of 
applications submitted by employees.
• Learning & Development
Captures specific L&D needs of employees for enhancing skill sets, and tracks mandatory 
training/counselling/emotional support programs.
• Benefits Administration
Enables HR to define and manage benefits programs while employees can stay updated. The right 
benefits help attract and retain the right employees.
• Employee Self-service
An ESS portal offers employees anywhere, anytime access to their official information. This ensures 
better transparency, engagement, and higher productivity.
• Payroll Processing
Creates a system where employee salaries are computed, disbursed, accounted and reported in a timely 
& accurate manner. Also manages statutory compliance by linking the HR system to government portals.
• Personnel Tracking
Also called employee tracking, personnel tracking helps HR keep track of an employee’s work location, 
activities and performance. The system also has an updated record of the relevant personal details of all 
employees.
• Onboarding
Expedites the employee onboarding process with digital data collection and verification while minimizing 
paperwork and errors.
• Performance Management
Provides a system for setting up and tracking short-term/long-term employee goals, outstanding 
achievements, recognition, promotions, salary changes, feedback, surveys, opinions and more.
• Analytics
Configures the database and IT infrastructure to collect, analyze and store disparate data. Also 
generates reports related to headcount, data validation, salary costs, audit schedules and 
reconciliation, among others.
• Position Control
Tracks information and enables budgeting and planning based on positions rather than employees. 
The objective is to ensure that the right people are placed in the right positions.
• HR Services
Speeds up HR tasks by providing easy access to policies, procedures, company/government rules, 
FAQs, employee queries, chats, tax support, employee letters, record management and reminders.
• Global Support
Offers support in multiple languages for customers across locations. Also has a built-in feature to 
display monetary values and process transactions in the local currency.
Visit greytHR website.
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