Human Resource Management Systems have come a long way for sure. And if you’re running a business with a large HR department, you may have tod eal with a lot of HR software related terms. So, it’s crucial to understand the difference between key terms: HCM, HRIS, and HRMS.
Put shortly, HCM is all about strategic growth, HRIS handles the data and logistics whereas HRMS blends the two for a more complete solution.
Which one you choose depends on your needs and problems i.e. either you need a people management solution, or you need to handle data, or even a mix of both.
No doubt, these terms often get mixed up. But each has a unique meaning and, of course, a unique role for you to understand, so you can get ahead in managing your people and processes.
Let’s learn more…
Understanding the Key Differences Between HCM, HRIS, and HRMS
Here’s the lowdown…
HCM, HRIS, and HRMS all deal with HR management, but each system has a distinct focus.
HCM (Human Capital Management)
This is the big picture. HCM is about managing people strategically. It covers everything from talent acquisition to performance management and development to succession planning and whatnot. HCM isn’t just a tool for tracking employees. It’s more a tool for growing them.
HRIS (Human Resource Information System)
Consider HRIS the backbone of your HR data. It handles everything from employee records to payroll, benefits, compliance, and whatnot. HRIS is more focused on strict data management and smooth day-to-day HR operations delivery.
HRMS (Human Resource Management System)
This is a hybrid of both HRIS and HCM. HMS integrates data management and talent management seamlessly to capacitate your teams to track employees while simultaneously focusing on their consistent development and fruitful career paths. HRMS brings the best of both worlds.
READ: Mastering Tenant-to-Tenant Migrations
What is HCM (Human Capital Management) Software?
HCM Software is all about managing your people as they are your most valuable asset. Instead of navigating a plethora of spreadsheets and so-called productivity tools, HCM ties everything together. This way it gives you one solid unified platform where you can manage your employees’ lifecycle right from the start to finish.
And it’s not all about checking off HR tasks.
HCM Software also helps your HR teams become more strategic. How? Basically, it allows them to focus hard on the really important HR stuff i.e. supporting and growing their workers.
No matter if you’re trying to find ways to streamline your employee recruitment process or improve their engagement, or even make data-driven HR decisions, a good HCM software should guide you with everything to keep your workforce working at their maximum capacity.
All in all, HCM is a tool that takes HR from being reactive to proactive. And that’s why it’s gaining so much traction in this hyper-growing business atmosphere.
What is the Significance of HCM in HR?
HCM in Human Resource (HR) sees your workers as assets instead of merely employees.
HCM in HR is more than just basic HR tasks like payroll and benefits as this concept tends to focus more on long-term growth and development of your workers.
Simply put, it’s about ensuring you’re getting the most out of your employee base. HCM comes with everything you expect from HR technology i.e. recruiting top talent, managing performance, setting up career paths, planning for future leadership, etc.
All in all, HCM in HR is not just about filling positions or managing schedules. In fact, it’s leaning more towards shaping your company’s success by investing in the right people.
HCM Systems in Action: Key Examples
Let’s examine how HCM systems like Workday and SAP are being utilized in the real world.
Workday HCM
It’s known for its user-friendly interface. Workday HCM is a solid cloud-based platform and its forte is that it simplifies everything right from recruitment to payroll.
It’s particularly strong in the finance niche and HR integration, which makes it a favorite for larger businesses. Workday HCM allows your HR teams to make more informed, data-backed decisions, while simultaneously improving overall employee experience.
SAP HCM
Another powerhouse for large, global enterprises.
SAP handles everything from talent management to payroll. SAP is particularly popular for its strong focus on compliance and multi-country functionality.
Basically, SAP HCM is built primarily to support seamless scalability and complexity at any level on the go. So this HCM tool is perfect for you if your organization has a large, diverse employee base. All in all, SAP aspires to be a unique software to help with managing people, processes, and data.
But, as we’ll see ahead, HCM software like Workday or SAP HCM can be really augmented with tools like Adaxes to further their ability to streamline HR processes by automating IAM. This powerful combo is sure to make your systems work in hyper-productivity mode and more securely.
READ: Security First: Safeguarding AD Assets During Mergers and Acquisitions
Conclusion
Choosing the Right HCM Solution for Your Business…
Managing the employee force is hard. But when you have understood the difference between key terms like HCM, HRIS, and HRMS, you have already got yourself on right learning path.
This knowledge definitely helps you to assess what you need from HR related software to create a robust system for managing talent or tracking data or even a mix of both.
Choosing the right one depends on your company’s size and your goals. If you choose the right HCM platform, you are basically investing in enhanced employee engagement and better, data-driven decisions regarding your HR. Adaxes can help you to consolidate an already robust HCM system with even more efficiency.
Need Expert Help? Explore WME’s HR Automation Services
If you’re ready to improve your HCM system, tools like Adaxes and ManageEngine AD Manager Plus can help you streamline HR operations and significantly enhance security.
WME Professional Adaxes Services focus on automating your identity and access management, so that your HCM platform may integrate well and securely with other systems.
You may have found managing your employee data and access complex with only an HCM system, but Adaxes simplifies this process as well.
Our Adaxes services solve these problems for you, no matter if you are managing a small team or an SME level workforce. Our Adaxes solutions automate your user provisioning, role management, and security compliance matters. This is how we significantly reduce the requirement for manual work and increase efficiency in your HR processes.
We also offer similar automation or integration services
if your organization is using any of these HR tech tools i.e. Sage, Rippling, Criterion, Boomi, RoboMQ, Terraform, Coreview, Okta, etc. but, remember, Adaxes has been central to streamlining HR operations with its flexible automation options.
The HCM system & Adaxes combo, advised by us, will definitely be a rockstar. This powerful blending makes sure a smoother onboarding, faster employee access to necessary tools and data, and better than ever security.
So, if you’re looking for a smarter and more secure way to manage your employees with HCM software, WME Adaxes services are the solution you need. CTA: Contact Our Adaxes Professional Services Experts
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