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Talent Management

How HRIS Software is Redefining Human Resources

One Minute Takeaway

  • Human Resources Information System (HRIS) Software is at the heart of modern workforce management
  • HRIS software is often compared with Human Capital Management (HCM) and Human Resources Management Systems (HRMS)
  • All three terms describe software offering a broad range of functionality

HR teams are workplace heroes, who take responsibility for all stages of the employee journey—from hiring to firing and everything in between, not least making sure everyone is paid on time. We can all agree they deserve some help. The good news is, they’ve got it, thanks to HR software.

What we can’t all agree on is exactly what this software should be called. It’s easy to get confused by a swarm of longer abbreviations: HRIS, HCM and HRMS.

Sounds complicated. In reality, there’s a lot of overlap with the software these terms describe.

Why HRIS Isn’t as Confusing as it Sounds

These different terms mostly represent different ways of looking at HR software.

HRIS: Human Resources Information Systems. This term dates back to early HR software, which focused on storing employee data. At first, this was mostly personal details and salary information. Now, software can store everything HR will ever need to know about an employee—it doesn’t stop at their pay and benefits or schedule and time sheets. HRIS software can collect manager feedback, notes on an employee’s suitability for promotion or even their favorite cookie.

HCM: Human Capital Management. This definition focuses more on strategy, rather than just information. It means caring about onboarding, development and performance management. HCM software helps make sure your whole team is engaged, productive and on their way to reaching their full potential.

HRMS: Human Resources Management System. The easiest way to describe HRMS is it’s what you get if you combine the information management of HRIS and broader strategy of HCM. Essentially, HRMS software (like Paycor) covers every aspect of an HR leader leader’s remit. It can function like the head of a software family, including features sometimes packaged separately, like Applicant Tracking Systems (ATS), Learning Management Systems (LMS) or benefits administration tools.

How HR Software is Revolutionizing the Workplace

However you choose to describe it, software is changing how HR works. Over time, the role is becoming less focused on administration and more on strategy. Paycor research found HR teams used to spend up to 70% of their time on inefficient admin tasks. This wasn’t just time-consuming; making calculations by spreadsheets or pen and paper meant making costly errors that had to be fixed later.

Software gives HR leaders time back in their day—the question is, what will they do with it? One answer is to take a more strategic role. They can concentrate on how to boost productivity, supercharge engagement and reduce turnover. You don’t want to leave these decisions down to gut-feeling—that’s why software gives HR leaders the tools they need to analyze data and spot trends.

How HR Software Helps Employees

The upside of HR software doesn’t stop there. Employees can also be empowered with self-service functionality, while mobile accessibility means they can access whatever they need to know from wherever they are. This applies to all stages of the employment process: candidate text messaging keeps applicants in the loop while smarter scheduling tools like shift-swapping give employees more power over their time.

Ultimately, when companies are able to devote more resources to strategic aspects of HR like learning and development, compensation planning and performance management, employees will benefit.

How Paycor Helps

Paycor creates HR software for leaders who want to make a difference. For 30 years, we’ve been listening to and partnering with leaders, so we know what they need: HR technology that saves time, powerful analytics that provide actionable insights and dedicated support from HR experts. That’s why more than 40,000 businesses trust Paycor to help them solve problems and achieve their goals.