What are some key HR systems?


HR is a key aspect of any successful business and without an effective HR team in place, the internal structure of the company can completely fall apart. It’s vital, therefore, that businesses invest in their HR systems to provide the organization with a secure and stable solution. There are several systems to choose from, each with their own benefits to consider, which can make it confusing when knowing which one to go for. To help, this guide will explain the different types so you can make the right choice for your business.

Human Resource Information System

The Human Resource Information System (HRIS) is designed to manage three main areas – people, policies and procedures. It does this by encompassing a wide variety of tasks, from recruitment and applicant tracking to training and development of staff, benefit administration and compensation management. The beauty of using HRIS is that reporting is also streamlined which makes it easier to break down employee data quickly and accurately, which is vital for decision-making. In addition to streamlining workflow tasks, HRIS also assists with self-service tasks for applicants, employees and managers. This makes the process of leaving requests or updating data easier for staff to do themselves, freeing up the time of HR professionals to work on other tasks.

Human Capital Management System

Human Capital Management Systems (HCMS) are great for encapsulating the capabilities of HRIS but with the added benefit of global capabilities and talent management. This includes on-boarding and training staff by digitally sending training materials for new hires to look through in their own time, as well as assisting with performance and goal management of staff. Performance reviews are a driving force of many businesses, but they can be time consuming and admin-heavy – HCM creates a simpler format that allows for more in-depth reviews from all parties. This makes identifying development points quicker and easier, as well as assessing training needs for professional development.


HCM can help with personnel management and budgeting, as well as succession planning by analysing performance reviews and other data to make the right choice for suitable successors when people retire or leave the company. For global companies, cloud solutions allow businesses to consolidate their capabilities into one system that makes it easier to instil standardisation and compliance across the whole organization.

Human Resource Management System

A Human Resource Management System (HRMS) can encapsulate a wide range of resources, many of which can be found in the previously listed HR systems, but the two main advantages of this system are payroll and time management. Payroll is one of the most important parts of the business, but it can lead to a lot of problems and headaches for those managing it.
A robust system is invaluable to almost any company and that’s where HRMS can help, simply by automating the process and making updating data much simpler. This system can also simplify the process of managing the time of employees and understanding where resources are being concentrated to calculate the fees sent to clients if necessary. It makes it easy for workers to log their hours or for managers to track how many hours staff have worked, providing accurate and valuable data for assessing performance and behaviour.