HRIS, HRMS and HCM – what's the difference?

When looking for an HR technology for your business, you probably heard terms such as HCM, HRMS, and HRIS. If you have ever wondered what is HCM software platform or what is HRMS software, you will find the answers in this article.

In the times we're living, hybrid and remote work with their popularity has grown 10 times compared before and during pandemic times, online HR solutions are essential to maintain the proper functioning of your HR team and the whole organization.

Choosing the right HR software requires knowledge about the range of HR functions and core HR processes covered by various types of software. That's why, to help you select the proper HR solution, understand the differences between HRIS and HCM, HRIS vs. HRMS, and the overall HRIS vs. HRMS vs. HCM landscape, we have prepared this article.

In the article, you will read about:

Terms: what is HRIS – Human Resources Information System
What is HRMS system – Human Resources Management System
What is HCM system – Human Capital Management
How can Calamari help your HR department

What is HRIS – Human Resources Information System

A human resource information system – so-called HRIS – is HRIS system software or an online platform that allows managing core HR functions in your business. It contains all the employees' data needed to manage those processes.

Inside the HRIS software, you can store information like full names, addresses, or work permits. Using an HR system to store data in one place helps HR professionals improve processes, generate reports with employee data and HR metrics.

There are some typical features that an HRIS solution provides:

Attendance – tracking worked hours, PTO, scheduled, clock-in/out hours,
Personnel Tracking – managing online employees' directory with personal and contact data and position details,
Payroll and Tax Compliance – processing payroll with calculated wages and salaries, managing taxes and benefits deductions,
Self Service – giving employees access to the data and features such as changing their personal information or enrolling in benefits,
Benefits Administration – managing benefits data, tracking compliance and allowing employees to online enroll.

These functionalities help HR specialists be more efficient in HR operations, freeing time for more strategic tasks such as talent acquisition.

What is HCM: Human Capital Management

Human Capital Management is a modern HCM solution that helps in managing employees across the workforce lifecycle. It usually includes all the HRIS and HRMS tools and is designed to support HCM strategy.

It typically provides tools for talent management, recruitment, onboarding, performance tracking, compensation, and offboarding. HCM systems often include core HR functions, but also strategic elements like career path and budgeting.

Thanks to holding all documents, timesheets, and performance analyses, an HCM system makes it easier for the organization to track all the employee-related processes end-to-end.

The main features typically available in HCM software are:

workforce acquisition – recruitment process off- and online, applicant tracking system and onboarding,
employee management – time and attendance tracking, company culture, employee life cycle, performance management,
talent optimization – competency tracking, compensation, employee engagement, career path, budgeting.

This HCM vs. HRMS comparison shows how HCM covers a broader range of HR functions, making it ideal for companies seeking a strategic HRMS vs. HRIS approach.

What is HRMS: Human Resources Management System

Human Resources Management System is HRMS software that contains all the features included in HRIS, but with a greater focus on productivity work and employee experience. HRMS usually supports more in-depth insights into employee performance, behavior, and engagement.

HRMS is a more comprehensive version of HRIS, offering tools for data management, payroll, recruitment, benefits, employee engagement, and talent management.

While HRIS focuses on data storage and administrative HR, HRMS supports additional HR tasks like performance reviews and learning. The elements of HRMS—such as analytics dashboards—help HR teams make data-driven decisions.

The most common features that are included in HRMS are:

labor management,
time management,
payroll processing and wage calculation,
HRIS & HCM capabilities.

Based on this knowledge, it's not difficult to see that HRMS is the most complex software of every HR tool we're referring to. It combines the elements of HRMS, including data handling, payroll, and employee engagement, making it essential for modern HR operations. The key difference lies in how HRMS helps streamline not only administrative but also strategic HR strategies. When comparing the three types of HR systems, HRIS, HRMS, and HCM, it’s important to understand the key differences between HRIS and the broader HRMS solutions or HCM platform.

How can Calamari help your HR department?

Calamari is an HR management software that covers time and attendance tracking, leave management and Core HR features. It can be a part of HRIS, HRMS, and HCM systems in your organization thanks to its many integrations with the most popular business software like Slack, Jira, MS Teams, or Google Workspace. Whether you choose HRIS or HRMS, Calamari supports HR practices and simplifies operations within the types of HR systems used by your company.

With the help of Calamari, you can track your employees' attendance, lateness, and other abnormalities in employee timesheets. It also facilitates the process of leave management, which allows you to better your company’s work in time. This is a great example of how HRMS helps with day-to-day basic HR functions. Thanks to the Core HR features, you can store all the data about the employees in one centralized platform, which is not only easier but at the same time faster and more efficient.

Calamari also supports organizations looking to align HR goals with broader business objectives through critical HR insights. It delivers the right HR technology for those who want to decide between HRIS types and integrate with their HCM and HRMS ecosystem. Since HRIS is a software that emphasizes data, and HCM includes talent development, Calamari works across both by providing flexible tools and integrations that suit all types of HR software.

If you would like to know more about Calamari features, contact us! And if you are eager to know more about the HR management industry, follow our HR blog and explore articles on HRIS tools, HRIS but also how HCM differs from other systems. Understanding the term HRIS, terms human resources information system, and what each system offers will help you make the right decision for your organization.

FAQ – HRIS, HRMS and HCM – what's the difference?

1. What’s the difference between HRIS, HRMS, and HCM?

The key difference is scope: HRIS software focuses on storing employee data, HRMS adds more features like performance tracking, and HCM systems include everything with strategic tools like talent planning.

2. What type of HR software is best for my company?

It depends on your needs. For basic data, go with HRIS; for deeper analytics and engagement, HRMS; for full workforce strategy, choose an HCM solution.

3. Why is using an HR system important today?

Using an HR system helps streamline tasks like payroll, attendance, and leave—saving time, reducing errors, and improving the employee experience.

4. What are the key differences between HRIS and HRMS?

The key differences between HRIS and HRMS are in functionality. HRIS handles records, while HRMS includes tools for managing productivity, employee engagement, and more.

5. How does HCM differ from HRIS and HRMS?

HCM is different because it focuses on long-term workforce planning and growth, not just daily HR management.

6. Can I pick between HRIS, HRMS, and HCM later?

Yes! Many companies select between HRIS and other systems as they scale. Start small and upgrade your HR technology as needs grow.

7. What are the most common types of HR software?

The main types of HR software are HRIS, HRMS, and HCM systems—each designed for different levels of complexity and business needs.

8. How do I choose the right HR system?

To pick the proper HR system, list your priorities: Do you need simple record-keeping, performance tracking, or talent development? Match your needs with the right tool.