Most of the common people misunderstand HRMS, HRIS and HCM to be the same systems. Although the differences are minor, these are actually different kinds of HR software that vary on the basis of the diversity of functions that they can perform. For instance, the HRIS deals with the tasks that involve information and data management and the actions that the HCM suite manages will be discussed later below in the write-up.
So, in this blog today, we will talk about the HCM suite, the ways in which it differs from the HRMS and how it acts as the key to execute all-inclusive HR operations:
Difference Between HRMS and HCM Suite
The HRMS takes care of broader processes like Time and Labor Management, Payroll Processing and others along with the ones included in HRIS.
On the other hand, HCM, short for Human Capital Management, is the system that completely revolves around human resources of an organization. The suite helps to grab attention, train & develop, engage, retain and administer the workforce of the company.
Functions Managed By An HCM Suite
Listed below are the 8 most important features of an HCM suite which form the differentiating factors to set it apart from the other types of HR software:
- Employee Recruitment and Onboarding
Since the first step related to employees is hiring, the first system required for the same is a recruitment management software. When we talk about an HCM suite, it effectively manages the steps involved in hiring and onboarding of the new employees. Tasks such as Applicant Tracking, Job Ad Posting, Interview and Test Evaluation, Candidate Shortlisting among others can all be managed using this feature of HCM suite.
- Employee Performance Assessment
Next, when the employees undergo induction and orientation sessions, the real work begins. They are assigned with KRAs (daily responsibilities) and KPIs (Key Performance Indicators) as targets to achieve in order to promote/appraise the employees as per their performances when the time comes. Now, this function of the employee process assessment is administered by the so-called HCM suite.
- Reporting and Analytics
This is a common function that is a part of all other types of HR software as every task needs monitoring, review and analysis. The reports generated from the insights are used for business advancement, strategy formulation and forecasting.
- Position Control Mechanism
For all the regular employees, position control is a mechanism that comes under the HCM suite features to track and assess information on the basis of position rather than the employees.
- Expense Management
This one is a crucial part of the employee lifecycle. All the expenditures starting from domestic to international traveling are recorded in this system. The expense management software India has, is capable of carrying out and managing almost everything that concerns the employee expenses.
- Succession Planning
The advance planning and management of the hierarchy of the organization that emphasizes avoiding the lack of suitable candidates for each position is called succession planning. It automatically identifies and assesses new leaders to develop and prepare them for a new vacant position in the company.
- Global Support
This feature of the HCM suite is used to streamline the global business intelligence, ERP software training and outsourcing services. It is basically focused on the coordination between onshore and offshore teams to gain maximum efficiency of global tasks.
- Human Resource Services
Now, the last one is the most elaborate function of the HCM suite. The all-round administration of the HR department that controls core HR functions is managed using this feature. It includes recruitment, training, performance, payroll, employee engagement and retention. Moreover, the HR services and consulting opportunities provided to an outside party through the HR software also comes under this section.
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