HR software acronyms made simple
While researching HR solutions, you’ll encounter three primary acronyms: Human resources information system (HRIS), human resources management system (HRMS), and human capital management (HCM).
The most important thing to know about the various kinds of HR software, such as Dynamics 365 Human Resources, is that the acronym is not as important as the features and capabilities offered by each solution. That said, there are some general rules of thumb that can be applied to help you tell the difference between the acronyms.
HRIS and HRMS
HRIS is an older acronym that is now interchangeable with HRMS. HRMS software typically centralizes the organizational structure of your HR team and people management by providing a single solution for managing people, procedures, and policies.
Common features:
- Time and attendance tracking
- Leave and absence programs
- Benefits management and administration
- Self-service employee portal
- Recruiting (Applicant tracking system)
HCM refers to HR software that encompasses everything typically offered in an HRMS with the addition of workforce planning and integration with customer relationship management (CRM) and enterprise resource planning (ERP) business applications.
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