As long as you are associated with an organization, there will be new technologies coming, and with them, new names popping up. So, you cannot claim to be aware of each and everything about the advancement happening around you. That’s not possible! If we particularly talk about the human resource department, every employee has something or the other to do with it almost every day.
Whether you are working with an organization as an HR professional or not, the common HR terminologies are relevant to everyone. And then, it becomes a challenge if you cannot understand the basic terms and it all seems like a foreign language to you. The current usage of HRMS software in every company has brought new abbreviations, words, phrases, and a whole vocabulary with it.
Here are 5 of the most commonly used HR software-related terminologies that you will hear and a little elaboration of each:
HCM (Human Capital Management) Suite
This one is often mistaken with an HRMS or HRIS but is actually slightly different. It lies somewhere in between the other two in terms of functionality. For instance, HRIS is like a sub-part of HCM. So, the HCM software or suite performs all the operations of HRIS along with some more. Examples of HCM processes are HRIS activities, Employee Performance, Onboarding, Reporting & Analytics, Position Control, Global Support, and other HR services. When you talk about a whole HRMS solution, HCM becomes a part of it.
PMS (Payroll Management Solution)
Which is the most important yet the most complex part of all the HR functions? Yes, you guessed it right! It is the ever so intricate payroll processing. However, with the advent of automation, it is not that complicated anymore. Payroll software is used to mechanize and streamline all the steps involved in payroll processing from recording employee data and attendance to salary calculation and distribution. The payroll management solution can do it all.
HRIS (Human Resource Information System)
This is the brain of the HR software. Basically, it registers and plays with the information. As the name suggests, it is an amalgamation of human resources and information technology. Entering, storing, tracking, manipulating, managing and transferring data are all functions of HRIS software. It covers the part of HRMS that majorly requires information handling such as Hiring & Recruitment, Time & Attendance Management, Training & Development, Benefits & Compensation Administration, Self Service Portal, Personnel Tracking and Workflow Management.
ATS (Applicant Tracking System)
It is a software application, particularly used at the time of hiring & recruitment or background verification of employees. Quite understandable by the name, it is used to electronically track the employee information during different stages of employment.
SaaS (Software as a Service)
Also known as ‘on-demand software, and formerly recognized as ‘software plus services’, this model is used for delivery and licensing. It has integrated HRIS software to manage information. Also, the software can be used online through a subscription rather than buying and installing separately on different computers.