Are HCM, HRIS and HRMS Interchangeable Terms?
At a basic level HCM, HRMS and HRIS all describe the same thing. So, why are there separate terms? It’s most likely due to the rapid development of these technologies, which prompted the sudden creation of various terms all at once.
That said, there are sometimes subtle differences between the three types. Think of them like three different restaurants. Each one serves food, and while there’s overlap, their menus aren’t identical.
On top of that, vendors often use the terms interchangeably. That’s why it’s wise never to assume that a system that’s marketed using a particular term automatically includes certain features or offers specific capabilities.
In the past, the differences were more pronounced, so it was likelier that you could depend on the terms to mean what they said. Products were narrower in focus, and intended to serve only specific needs for companies. That naturally created a greater divide between the systems, since they focused on different areas.
As the industry has progressed, however, the gap has shrunk. Rather than opting for several solutions from different vendors to meet HR needs, companies have shifted toward the single solution model.
Today’s companies want an integrated suite of features from one provider. Why? It’s much easier to get unified, 360-degree visibility and streamline management. As companies become more complex and produce more data that requires tracking, it’s more of a hassle to deal with data silos and disparate systems.
Vendors have accommodated the market demands by extending the capabilities of their products to incorporate more functions. The downside is that you can never be quite sure what a term refers to anymore. And what something means today may not be the same a year from now.
