Generally, the terms HRMS & HCM are used synonymously, but slight differences exist between the two owing to technological advancements. The journey from HRMS and human resources (HR) solutions, with a focus on database management, to the modern, strategic, and employee-centered HCM has been gradual. Let’s deep dive into HRMS Vs HCM.
HRMS
- An evolution from the previous HRMS systems provides a comprehensive software suite used by enterprises to oversee internal HR proceedings.
- Analysts favored HRMS as it described the HR software suites during the early 2000s, the era of on-premises solutions.
- From handling employee data to administering payroll, recruitment process, benefits, training, talent management, employee engagement, and employee attendance, HRMS has helped HR professionals adeptly manage the contemporary workforce. It makes crucial data about a company’s valuable assets readily available to those who require it.
- The term HRMS is still in use for cloud-hosted systems but, it is not prevalently used for applications built natively for the cloud. Even if HRMS and HCM are used interchangeably, a web search will give information regarding both.
- The Oracle HRMS solutions comprise:
- It include Oracle HR for basic employee statistics management.
- For payroll, tax allowances, and more, it’s Oracle Payroll.
- Oracle Self-Service Human Resources for a self-service-oriented employee interface.
- Oracle Performance Management, an application aiding performance evaluations.
- Talent recruitment enhancer which is Oracle iRecruitment.
- App for time recording for hourly workers – Oracle Time & Labor
- Oracle Learning Management looks after training event management and registering.
- Oracle Advanced Benefits for benefits management and signups
- For data analysis and reports, there’s Oracle HRMS Intelligence.
HCM
A complete suite of HR applications built in the cloud are geared towards enriching the employee experience is described as HCM. The term was used in the era before the cloud. Analysts are increasingly referring to the domain as HCM, helping the term establish a firm place among clients and providers.
- Today’s HCM solution often integrates digital aides, AI, and other aids enabling collaboration and data sharing across teams.
- It provides extra functionality, including advanced talent management activities such as performance management, learning, succession planning, and compensation planning. Other abilities include strategic workforce planning and workforce modeling.
- It runs the entire spectrum of HR responsibilities, irrespective of them being database-centric, transactional, or strategic. HCM changes the typical administrative tasks of HR departments—recruiting, training, payroll, compensation, and performance management— into opportunities to foster engagement, productivity, and business growth.
- The Oracle Cloud HCM modules constitute:
- Human Resources, encompassing fundamental HR roles, benefits coordination, and strategic workforce blueprinting.
- Talent Management, covering recruiting, onboarding, compensation, career progression, and succession planning.
- Workforce Management, covering health and safety, absence management, and time and labor.
- Payroll, including country-oriented payroll control solutions.
- HCM Analytics, inclusive of pre-determined and custom key performance indicators and dashboards, as well as cooperation instruments.
