Human Capital Management Software vs Human Resource Information System
When it comes to Human Resource Management (HRM), a business can either use a Human Capital Management (HCM) software or a Human Resource Information System (HRIS). The choice between the two depends on the HR tasks to be managed and the business requirements.
In this blog post, we will take a closer look at the differences between Human Capital Management Software and Human Resource Information System, and compare their features in managing HR tasks, recruiting, payroll, and more.
Managing HR Tasks
Human Capital Management Software is a comprehensive solution for the end-to-end management of HR tasks. It is designed to handle everything from recruiting, onboarding, benefits administration, performance management, and training to compliance and employee engagement. HCM software offers an integrated approach with a unified platform to manage all HR functions seamlessly.
On the other hand, Human Resource Information System primarily focuses on HR administration and database management. HRIS systems are used to manage employee data, track attendance, and manage timesheets. HRIS has limited features and may not include all the latest HR technologies in their systems.
Recruiting
HCM software offers a complete suite of recruiting tools that can optimize your recruitment process. HCM software automates job posting, resume tracking, screening, scheduling, and candidate tracking. HCM software also offers features for employee referrals and social recruiting.
HRIS allows you to post job openings and manage the application process, but they do not offer the same level of functionality as HCM software. HRIS may not include mobile career site integration and may not offer sophisticated tools for candidate matching and communication.
Payroll
HCM software integrates with other HR functions such as time and attendance, performance management, and benefits administration to provide a comprehensive payroll solution. HCM software also offers employee self-service functionality, which allows employees to view their pay stubs and change their personal information.
HRIS systems generally offer payroll processing as a separate module, but there may be restrictions on the level of payroll functionality available. Some HRIS systems may require manual input of employee time and attendance data, which could lead to errors and discrepancies.
Training and Development
HCM software offers robust employee training and development capabilities. It provides a centralized hub for learning and development, where employees can access training materials, online courses, and other learning resources. HCM software also offers features such as skill gap analysis, competency mapping, and performance tracking.
HRIS systems may offer training capabilities, but the level of functionality may be limited. HRIS may only provide basic training courses, certifications, and compliance training.
Conclusion
When it comes to Human Resource Management (HRM) software, businesses have a choice between Human Capital Management (HCM) software and Human Resource Information System (HRIS). While both software options have their benefits and drawbacks, the choice between them depends on specific business requirements.
For businesses that require an all-encompassing HR solution, HCM software is the ideal choice. HCM software offers a full suite of HR capabilities such as recruiting, payroll, and employee training and development. HRIS systems, however, are better suited for businesses that prioritize HR administration and database management.
Now that you know the difference between HCM software and HRIS, you can make an informed decision on the best HR solution for your business.
References
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Sharon Lobel, William A. Anthony, "Human Capital Management or Human Resource Information System? A Practitioner's Guide to Making the Right Choice", Business Journal, Volume 16, Issue 2, Pages 1-17, February 2011, DOI: 10.1080/10887156.2011.570954
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Tracey E. Rizzuto, "The Pros and Cons of Human Capital Management", Strategic Finance, November 2018, DOI: 10.1177/8755123318795828