HRIS and HRMS, What's the Difference?

As an HRIS Solution, a.k.a. HR software, HRMS solution, HR Payroll Software, web vendor, I am anyone in this industry are constantly searching for new keywords to improve our rank and thus, bring more users to our websites. Currently, we track over one hundred and fifty unique HRIS solutions keywords. The problem is many of these keywords define the exact same thing. So I ask the question: -Are we confusing the HR profession by refusing to offer a language of terms that is more consistent?- With this article, my intention is to provide definitions to many of the terms those in the HR profession are likely to hear regarding HR software.

Perhaps the reason for so many terms for HRIS software is online advertising itself. The vendors who market online are constantly searching for new terms with which to rank well and attract vendors. There have been some vendors who have a brand strong enough to create their own terms and then everyone else jumps on the bandwagon. The terms 'Talent Management' and 'Talent Acquisition' are the two best examples I have seen. This improvement of terms by marketing gurus happens in other industries as well. My father owned a Chevy blazer known today as a sport utility vehicle. Now every auto manufacturer has jumped on the band wagon and uses the same term. The new term is cross over. What will the new term be for HR management software?

It seems like the more simple terms which may have been created by IT people or programmers slowly become replaced by more sophisticated terms created in the marketing world. An example is HR database versus human resource information system (HRIS) or applicant tracking software versus talent acquisition software.

- HR Software - It used to be enough to say you were looking for HR software. Well, not anymore. Now saying you are looking for HR software is sort of like saying you are hungry but not providing any idea of what you are hungry for. Think of the term HR software as all encompassing. It includes all of the terms used below.

- Personnel Software, Employee Software, HR Database, HR system - These were the common terms used to define what we know today as HRIS, HRMS or HRM software. These were terms likely created by programmers or technical people; in other words, non marketing people. These terms of yesterday seem to perceive smaller less sophisticated systems than the terms more commonly used today in HR software marketing.

- Human Resource Information System, a.k.a. HRIS Solutions - This is the type of term you receive from marketing as opposed to terms used above created by an IT staff. Yep, it's all pretty much the same thing. However, an argument could be made that an HRIS application is more comprehensive in its capabilities than an HR database but this may, or may not, be true as there are no standards for the terms in our industry. In marketing, however, perception is reality.

- Human Resource Management System, a.k.a. HRMS Solutions - Again, as far as I can tell, this term means the same as HRIS, or any of the other terms used above or most offered below. Overall, I believe HRMS is perceived as being a more comprehensive HR application than HRIS systems.

- HRIS Solutions and HRMS Solutions: Is there a difference?

Webpedia.com defines HRIS as a system used by human resources departments to track employees and information about them. A HRIS is often a database system or a series of inter-related databases.

Webpedia.com defines an HRMS as a software application that combines many human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis and review into one package.

So according to these definitions, HRMS software is more comprehensive than HRIS software. I would love to accept this but, in reality, I can name a dozen HRIS applications that contain all of the features listed in the HRMS application. So now we are back to my original contention that the two terms, and many of the others, mean the exact same thing.

I worked with one HRIS vendor who changed the name of their system to an HRMS. It's important to note that they only changed the name, not the functionality. They simply believed the perception was that HRMS systems were more comprehensive than HRIS applications.

- Talent Management Software - A relatively new term to the market, this has replaced the term performance management software.

- Talent Acquisition - Like talent management software, this is a relatively new term to the market which is replacing the terms recruiting software or applicant tracking software.

- Licensed Purchase, Hosted License, ASP, SaaS, Online Subscription HRIS or HRMS - After fifteen years of selling HR software programs, these terms were confusing to me when I began working on CompareHRIS.com. I will do my best to define each. For these definitions, I will rely on that which was offered by George Brady with Vista HRMS.

- Subscription Service HRIS solutions (also referred to SaaS or PEPM) - Are sometimes referred to as multi-tenanted, as many companies share the system that has been configured for general use. The software and the data reside on servers in a secure facility, managed by the Vendor, where you access it from a Web browser. These solutions do not require IT support on your part. They usually require a set-up fee and you typically subscribe to this service monthly based on your employee population for a minimum term.

- Licensed/Purchase HRIS Solutions (You buy it and own it) - Licensed/Purchased solutions are sometimes referred to as In-House or On-Premise solutions. You pay a one-time license fee and your IT department installs and maintains the solution on your hardware using your network. License software is configured to your particular needs. There are implementation fees to set up the software. Ongoing annual Support fees are a percentage of the original license cost.

- Licensed/Hosted HRIS Solutions (also referred to as ASP) - Are the same as Licensed/Purchased with the software being configured to your particular needs. However, the Vendor hosts your software in its secure facility and provides the back office IT support. There are still implementation and Support fees. There is usually no minimum term as you own a license.

Closing - You are likely not the only person who has asked -What is the difference between an HRIS and an HRMS application?- I have worked in the industry for 15 years and I have asked the same question. Before today, I did not have a definitive answer. They are the same.