What Is HRMS?

A human resource management system (HRMS) is a suite of software applications that organizations use to manage their HR functions—from storing employee data, to managing payroll, recruitment, benefit administration, performance management, and more. 

What is the difference between HRIS and HRMS?

The main difference between an HRIS and HRMS is that a human resource management system covers a much broader range of functionalities within an organization, often including the features of a human resource information system.

An HRIS is a database, or series of databases, that store employee-related data. While the terms HRIS and HRMS are often used interchangeably, there is a difference between them. HRIS stores data, while HRMS provides the ability to manage data and a broad range of HR-related processes. 

How is HRMS used by HR?

An HRMS is used by HR to provide a more efficient and streamlined means of managing human resources. It can help HR leaders better understand their workforce while also remaining compliant with changing laws and labor regulations. An effective HRMS can aid in decision-making while also helping HR remain productive. 

For example, HRMS can be used in recruiting. Integrated with people analytics, an HRMS can help improve the recruiting process by connecting data from across HR systems to provide a comprehensive view of the employee lifecycle. This can help HR teams predict future recruitment needs, profile top performers, identify hidden recruitment sources, and evaluate internal talent pools. 

What are the benefits of an HRMS?

One of the big benefits of an HRMS is the ability to save time by streamlining processes and gaining efficiencies. The effective use of an HRMS can improve decision-making, enhance the employee experience, and aid in regulatory compliance. 

What are the limitations of an HRMS?

While an HRMS can be an important aid for the HR function, it does have limitations. Despite being a modern cloud technology, HRMS doesn’t automatically lead to HR transformation. It can assist with administrative tasks, but it lacks capabilities in advanced people analytics needed for strategic HR decision-making. True HR transformation involves a focus on innovation and the alignment of business needs rather than a sole focus on operational efficiencies.

Read more on HRMS:    

• 5 Surprising Ways to Improve Recruitment with HRMS Data and People Analytics

• Why a New HRMS Won’t Lead to HR Transformation

• People Analytics Maturity Linked to Better Financial Performance, Research Shows