HRIS (Human Resources Information System) and HRMS (Human Resources Management System) are terms often used interchangeably, but they can have subtle differences depending on how they are defined and the specific software involved. However, in practice, these systems often overlap in functionality.
The significant differences are listed here:
- HRIS (Human Resources Information System):
- Focus: HRIS primarily focuses on data management and information storage related to HR functions. It’s more data-centric.
- Core Functionality: HRIS typically includes core HR functions like employee data management, payroll processing, time and attendance tracking, and benefits administration.
- Data Reporting: It emphasizes data collection and reporting for compliance and decision-making.
- Efficiency: HRIS is often chosen for its efficiency in managing HR data and automating routine administrative tasks.
- HRMS (Human Resources Management System):
- Focus: HRMS encompasses a broader set of HR functions, including the data-centric aspects of HRIS along with a more comprehensive set of management and strategic features.
- Core Functionality: HRMS includes core HR functions as well as modules for workforce planning, talent management, recruitment, performance management, and employee self-service.
- Integration: HRMS systems often have more integration with strategic business planning and may include features like budgeting and strategic workforce planning.
- Strategic Management: HRMS is chosen when organizations want a system that goes beyond data management to support strategic HR decision-making and workforce planning.
In practical terms, the lines between HRIS and HRMS have blurred over the years, and many software systems incorporate features from both categories. Organizations may choose a system that aligns best with their specific needs, whether that’s a more data-centric HRIS or a broader HRMS that supports strategic HR management.
The terminology used in the HR software industry can vary, and vendors may label their products differently. It’s important for organizations to carefully evaluate the features and capabilities of a system to ensure it aligns with their objectives, regardless of whether it is called an HRIS or HRMS. Ultimately, the choice should be based on the organization’s unique requirements, the level of automation and strategic support needed, and the budget available.
| Features | Darwin Box | Keka HR | Zoho People | RazorpayX |
| Free Trial | No | Yes | Yes | Yes |
| Monthly Subscription | No, Quotation based | Yes, plans start from INR 6999 per month – up to 100 employees | Yes, plans start at INR 48 per user/ month | Yes, starts at INR 100 per user per month |
| User Interface | Good | Good | Needs revamp | Basic |
| Cost | Expensive | Medium range | Economical | Economical |
| Ideal For | Large enterprises & Companies | Supports SMEs | Startups SME’s | Startups & SME’s |
| Product Type | End-to-end HRMS | HR & Payroll Management | HRMS | Payroll Software |
| API | Allowed | Allowed | Allowed | Restrictive |
| Mobile Application | User friendly all features can be used in Mobile application | Yes, not all features can be used on the application | Yes, not all features can be used on the application | Yes, not all features can be used on the application |
| Customization | Yes | Yes | Limited | No |
| Attendance and Leave Management | Yes, enable face recognition, GPS enabled | Yes, GPS enabled | Yes | Yes, limited features |
| Payroll Management | Yes | Yes | Yes | Yes |
| Induction & Onboarding | Yes | Yes | Yes | Yes |
| Employee Self Service | Yes, Better Features | Yes | Yes | Yes |
| Performance Management | Yes, enable the use of OKRs & MBO’s | OKR’s and Goal Setting | Goals, KRA’s, Competency | No |
| Recruitment & Applicant Tracking System | Yes | Yes | Yes, | No |
| Support | Chat, Email, Phone, Tutorials, FAQ’s, Training | Chat, Email, Phone, FAQ’s | Chat, Email, Phone, Tutorials, FAQ’s, Training | Chat, Email, Tutorials, No training |
At Adomi, we constantly research the top HR products in the market, here is a recent comparison report for the year 2023.
All the above-mentioned software are good in their own respective ways however the one that comprehends and fulfills your objectives and specifications while also keeping the company’s budget in mind will be the finest choice for you.
You can get in touch with us right now to find out which software best suits your requirements.
