If you are just entering the world of HR, you will come across several terms. For someone who hasn’t worked with HR software suites before, such terms can be frustrating and overwhelming.

To make matters even worse, the definition of these terms can differ a lot, depending on who you are asking. 

In this article, you will be able to learn about the top three HR solutions – HRIS, HRMS, and HCM so that you can get the best hr software in India.


HRIS or the Human Resources Information System is the most basic option. And even though HRIS solutions cover several attributes, the term has become so blurry that it is crucial that you read the fine print. At its core, this solution is used for managing people, policies, and procedure and is capable of the following:

  • Benefits – Enrolling the employees in health insurance and tracking their information
  • Compensation – Handling different forms of compensation like salary, overtime pay, paid time off (PRO), bonus program, etc.
  • Hiring – Using an applicant tracking system for posting job descriptions, storing resumes, and managing interviews.
  • Leave Management – Managing unplanned absences caused by situations like injury, sickness, maternity leave, and unauthorized leave.
  • Personnel – Maintaining an employee record with details like personal information, position, and contact information.
  • Self-service – Giving all the employees a platform where they can change and manage their information.
  • Training – Providing a way of continuous development to the employees.
  • Workflows – Helping ratchet up productivity.


HRMS or Human Resource Management System is believed to be the most involved and comprehensive type of HR solution. It covers all the features that are offered by the HCM and HRIS systems. So, if you are purchasing an HRMS system, you can expect the following features:

  • Common capabilities and features of the HCM and HRIS systems
  • Time and Labor Management – Controlling the schedules of the employees, tracking the project times, and more for increasing profitability and productivity.
  • Payroll Processing – Calculating pay, deducting taxes, and sensing direct deposits automatically.

3. HCM

HCM or Human Capital Management refers to the employees’ overarching management. This is where the line gets blurry. Many believe that there is no difference between the HCM and HRMS solutions. Some consider the HCM to be the most extensive HR solution while some have reserved this distinction for the HRMS solution.

The one thing that you can be sure of is that it is more comprehensive than the HRIS solution. It includes all the features that are offered by the HRIS along with talent management capabilities. This covers learning and development, compensation planning, career planning, and succession planning.

Here are some of the most common functions that are offered in an HCM system:

  • All the features and capabilities offered by the HRIS system
  • Analytics – An in-depth analysis of key metrics.
  • Global – Multilingual and multi-currency features supporting international needs.
  • HR Service – Providing access to the knowledge base, procedures, policies, data, and documentation of a company.
  • Onboarding – Streamlining the process to help the new recruits get up to speed.
  • Performance – Tracking productivity and performance of an employee
  • Position Control – Making sure that each employee has the right set of responsibilities.

There is some overlap with the HRIS functions. However, HCM software is typically used to summarize the critical data for analysis. And even though HRIS has talent management features, the HCM system goes way deeper.

The only way for you to be sure about which system best fits your requirements is to reach the product description carefully. Perform your due diligence and ask questions to save yourself a lot of confusion and frustration in the long run and find the best HRM software in India.