HR Software Glossary

Human Capital Management (HCM) is the full talent-lifecycle suite: HRIS + payroll + recruiting + performance management + learning + workforce planning. The term is mostly used by enterprise vendors (Workday, Oracle) to signal breadth beyond core HRIS.

A Human Resources Information System (HRIS) is the system-of-record for employee data — storing contracts, salary, benefits, time-off balances, and org structure. It is the spreadsheet you replace when you grow beyond 10–15 people.

PEPM (Per Employee Per Month) is the dominant HR software pricing model — you pay a fixed amount for each employee on your headcount every month. It sounds simple but compounds in three non-obvious ways: headcount growth, module additions, and year-2 renewal increases.

Renewal price shock is the 15–30% year-2 price increase that many HR software vendors impose at contract renewal. It is the largest hidden cost in the category and the primary reason mid-market companies switch platforms at the 18-month mark.

RTI (Real Time Information) is HMRC's requirement that UK employers submit payroll data on or before every payday — not annually or monthly after the fact. Non-compliance results in automatic penalties. Only HMRC-recognised payroll software can file RTI.