Human capital management (HCM) is a broad set of practices and applications for recruiting, managing, and developing a company’s human capital – aka their workforce. Human capital management is often used as the umbrella term to describe the entire HR software category.
Human experience management (HXM) is SAP’s vision for the future of human capital management (HCM). It builds on the best of SAP’s HCM solutions and puts greater emphasis on employee experiences and engagement.
A human resource information system (HRIS) is software that helps companies manage and automate their core HR processes – such as recruiting, applicant tracking, time and attendance, benefits administration, and payroll. The software also includes an employee database (the “information” part of HRIS) to organize and manage employee data, from names and addresses to social security numbers and work permits. Some HRIS software also offers employee self-service tools, embedded localization, and regulatory compliance, reporting, and more.
A human resource management system (HRMS) is a type of software that includes all the features offered in a HRIS system plus additional talent management capabilities. These capabilities vary from HRMS to HRMS but often include performance management, learning and development, succession planning, people analytics, workforce planning, and employee experience management.
Human resource information system (HRIS) and human resource management system (HRMS) are sometimes used interchangeably – and sometimes, definitions vary for each. However, at SAP we see a clear distinction. An HRIS system includes an employee database and functionality for core HR processes. An HRMS system is broader. It includes an HRIS plus additional talent management capabilities, such as employee learning, development, performance management, and analytics.
An applicant tracking system (ATS) is a type of software used by recruiters and employers to track candidates throughout the hiring process. ATS software can post and manage job ads on multiple sites, collect the job applications coming in, sort and rank candidates, automate responses, send out interview reminders, and more.
Talent acquisition is the ongoing process of acquiring the right employees to meet business goals. It includes all the processes employers use for finding, recruiting, tracking, assessing, and interviewing job candidates – as well as onboarding new hires. Leveraging recruiting software to support your talent acquisition needs will help simplify hiring, streamline workflows, and enable consistency with automation, rules, and self-service tools.
Talent management follows talent acquisition. Talent management is the ongoing process of developing and retaining employees. It includes training, performance assessments and management, leadership development, succession planning, and more.