Understand the difference between HRIS and ERP

Business owners need to manage their overall business processes and it’s no news that the difference between HRIS and ERP is often confusing to many.

HRIS and ERP are two fundamental systems that play unique roles in an organization, even though they are interchanged many times by people. While it’s best to have these systems in place in your organization, it’s also very important to understand what they are and how they can benefit you.

To deepen your knowledge, we will look at what HRIS and ERP systems are. We will also highlight some of the differences between HRIS and ERP.

What is the HRIS?

It is an acronym for Human Resources Information System. These are systems specially designed to help HR professionals in the management of human resources. This system assists HR teams in various processes including recruitment, onboarding, payroll, people management, and more. Everything is integrated into one system, making it easy HR to do their job effectively.

What is an ERP?

It is an acronym for Enterprise Resource Planning. Compared to human resource systems, ERP focuses on key departments of an organization instead of just one. These departments could include human resources, marketing and many others. All operations are integrated into one system, which means that all relevant departments are linked to a central system software.

Differences between HRIS and ERP

To better understand which of these systems suits your needs, you need to know their differences. These include:

    • ERP systems focus on the major departments of an organization. On the other hand, HR systems are specifically designed for the HR department, so the built-in features only meet their needs.
    • HRIS in Human Resources is a great option because the features are more specific and targeted to meet the needs of HR professionals. ERP in human resources meets little or nothing to the needs of the human resources department since it focuses on all the departments of an organization.
    • HR HRIS is more people-specific and offers features that help HR professionals maintain and manage employee data. On the other hand, ERP systems are not only specific to people.
    • Some of the functions of the human resource system include payroll management, performance management, onboarding, etc. ERP functions include financial management, customer service, marketing and many more.

Which is best for HR?

Now let’s get to the question every HR professional hopes to get answered. Which of the systems is the best for human resource management? From the above explanation, it will be wise to say that human resource information systems make a best HR helper job. Indeed, they have been specially designed for HR only and will serve best in this field. An ERP will be useful but will not help HR so much. Since it is centered on general functionalities covering all departments, it can only be used in a certain way when talking about specificity. From our perspective, an HR information system is best for HR in any organization.

What are some HR systems to try?

If you’re looking to get the most out of the best HR systems, we have a few options for you:

    • natural HR
    • SmartHR
    • HR Bamboo
    • Tourbillon
    • Working day
    • To know
    • ADP

The differences between HRIS and ERP are now obvious. However, determining what works for your organization is essential. If you want to have a specific system just for people management, you can consider selecting a human resource information system. But an ERP will be the best option if your goal is to have a central system software for all your departments.

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