HRMS – (Human Resources Management System) a type of HR software that has the same capabilities as an HRIS but can manage additional HR processes - hence the 'management' in the name. These additional functions of an HRMS can include recruitment, expense management and talent management.

Your HR team are the main users, given that they run the everyday workforce functions and are responsible for compliance and performance reporting. However, HR isn’t the only department that benefits. Companies can empower managers and employees with self-service for common tasks such as booking their PTO—an important point for your younger, tech-savvy hires. Executives can use an HRMS to generate data on workforce trends and the knock-on business implications. As HR-related expenses can be some of the largest costs in a business, HRMS integration with the payroll system is invaluable for finance teams.

It's important to note the difference between a HRIS and HRMS. Many providers have combined the two systems and use the terms interchangeably since they work so closely together. Traditionally, an HRIS has been used to describe a system that tracks static employee information, such as their name, while an HRMS focuses more on managing employee functions like performance, leave taken, and onboarding. An HRMS will be more robust overall, as it is comprised of both HR and IT management technology.

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