Difference between Employee Management and HR Software

In the HR world, there are many different, interchangeable acronyms used to label HR technology (e.g. HRIS, HCM, HRMS). There appears to be no agreement in the industry on the usage of certain acronyms in particular circumstances. The latest addition to the HR software world is ‘Employee Management Software’.


I wanted to take a deeper look and compare feature sets of an Employee Management system and a HRIS/HRMS.


As shown in the table below, Employee Management Software tends to focus on the tasks that require a two way interaction between the employee and the organization to complete a task or transaction. This functionality is what you would typically find in the employee online portal functionality of a more comprehensive HRIS/HRMS. Functionality not found in an Employee Management solution includes; compensation, position control, payroll, and benefits functionalities. Many HR Software solutions provide an integrated solution which have a core system that maintains the employee database as well as allowing the administration of payroll, benefits and compensation planning.


Table 1: Comparison of Employee Management versus HR Systems


Before you make a decision on buying an Employee Management software versus an integrated HR software solution, be sure to understand what your organization’s needs are and match it with the features that each of these solutions provide.

If you are in the HR software buying process then check out our HR Buyer’s Guide for a complete guide on steps to follow throughout the process.