Understanding the Difference between HRIS and ERP

Business owners need to manage overall processes in their companies and it’s no news that the difference between HRIS and ERP is oftentimes confusing for many to understand.

HRIS and ERP are two fundamental systems that play unique roles in an organization even though they are interchanged by people a couple of times. While it’s best to set up these systems in your organization, it’s also very important to understand what they are and how they can serve you.

To further expand your knowledge, we will be looking at what HRIS and ERP systems are. We will also highlight some of the differences between HRIS and ERP.

What is HRIS?

It is an acronym for Human Resource Information System. This refers to systems that are specifically designed to assist HR professionals with human resource management. This system helps human resource teams with various processes including recruiting, onboarding, payroll, people management, and so on. Everything is integrated into one system making it easier for HR to do their work efficiently.

What is ERP?

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

Differences between HRIS and ERP

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

• • ERP systems focus on the core departments of an organization. On the other hand, human resource systems are specifically designed for the HR department hence the in-built features only address 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 addresses little to no needs of the HR department since it focuses on all departments in an organization.
  • HRIS in Human Resources is more people-specific and offers features that help HR professionals keep and manage employees’ data. On the other hand, ERP systems are not people-specific alone.
  • Some of the functions of the human resource system include payroll management, performance management, onboarding, and so on. The functions of ERP include finance management, customer service, marketing, and many more.

Which is best for HR?

Now down to the question every HR professional is hoping to get an answer to. Which of the systems is best for human resource management? From the above explanation, it will be wise to say human resource information systems do a better job in assisting HR. This is because they were specifically designed for HR alone and will serve best in that field. An ERP will be useful but won’t do so much in assisting HR. Since it is focused on general features covering all departments, it can only serve in a little way when we talk about specificity. From our perspective, a human resource information system is best for HR in any organization.

What are some human resource systems to try out?

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

• • Natural HR
  • IntelliHR
  • Bamboo HR
  • Eddy
  • Workday
  • Namely
  • ADP

The differences between HRIS and ERP are now evident. However, determining what works for your organization is key. If you’re looking to have a specified system just for people management, then you might consider selecting a human resource information system. But an ERP will be the best option if having a central system software for all your departments is your goal.

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