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Advantages and Disadvantages of an HR Suite vs Stand-alone HR Software


Posted: 1st November 2021 08:49

After researching various HR software solutions, you’ve likely come across terms like HRIS, also called “stand-alone,” software, and HR suites also called an HRMS. As confusing as that is, most of the functions present in an HRIS are also found in an HRMS.

In this article, we’re going to describe the difference between an HRIS and an HRMS, why they each have several nicknames, and how each software solution could benefit your company.

What is a stand-alone HR system (HRIS)?

A stand-alone HR system or HRIS (Human Resource Information System) is the smallest bundle of HR software. HRIS platforms are designed to get businesses up and running quickly while providing the essential HR applications, systems, and functionality companies require.

The term “stand-alone” HR solution likely came after the invention of the HRMS (Human Resource Management Solution) to try and differentiate the two. You’ll know you’re working with an HRIS if it doesn’t contain features like payroll and time and labor. 

You also won’t get a paystub generator and various other templates, so you’ll have to use other websites for payroll management, setting up direct deposits, and end-of-the-year taxation.

The Advantages of Using Stand-alone HR Software

When you use stand-alone software, you receive the following advantages:

Although stand-alone HR software has plenty of advantages, they have multiple disadvantages.

The Disadvantages of Using Stand-alone HR Software

When you use stand-alone software, you receive the following disadvantages:

What is an HR suite (HRMS)?

Similar to stand-alone software, HR suites help businesses manage and organize employee-related data, like benefits information, job info, demographic data, performance reviews, and leave balances. However, they go above and beyond by offering more features.

HRMS software is a total solution that allows companies to manage all aspects of their HR and accommodates a global presence. Businesses can use customization tools to create country-specific tags that cater to employees in their locations.

HRMS solutions are much more powerful than an HRIS and are capable of using analytic, payroll, and time and labor management.

The Advantages of Using an HR Suite

When you use an HR Suite, you receive the following advantages:

Although HR Suites have plenty of advantages, they also come with a few disadvantages.

The Disadvantages of Using an HR Suite

When you use an HR Suite, you receive the following disadvantages:

Conclusion

Although HR suites appear to be the best option, don’t automatically assume they’ll fit the bill. Several business owners can’t afford an HRMS and will need to build a larger team before its other features become useful. We recommend starting with an HRIS if you’re a startup.




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