4 min read
You may have heard of the term "human capital management", otherwise referred to as "HCM", but what does it mean? What is HCM Software? Why does your business need proper human capital management?
Here is everything you need to know about modern HCM systems.
Human capital management, often referred to as HCM, encompasses all processes and responsibilities when it comes to managing your workforce throughout the entire employee lifecycle, from recruitment to retirement.
This includes things such as:
What separates HCM from traditional workforce management is the idea that the processes around these core business functions should not only serve to complete those functions but should also serve as opportunities to drive engagement, productivity, and business value. Above all else, the concept of HCM revolves around viewing your workforce as more than just a cost of doing business. Instead, organizations should hold their workforce as another core business asset.
And like all business assets, the value of your workforce can be maximized through strategic investment and management by using a modern HCM system.
While HCM software is often robust and full of capabilities, there are four things that every organization should prioritize.
These include:
Aside from offering many benefits to your organization, including an ROI, there is one simple answer as to why companies need HCM software:
The modern workforce is complex.
Great organizations are built on great employees and great employee experiences. Relying on outdated, manual, semiautomated, or disparate systems and processes just means that you are not putting your people first, which is the foundation for a successful business as well as an attractive company culture.
Furthermore, inefficient processes do nothing but frustrate your people, leading to retention issues, disconnects within your workforce, and a plethora of other problems that no one wants to deal with.
By giving employees a unified HCM platform with the technology tools to work smarter and more seamlessly, you’ll
empower them to perform at their full potential and accomplish daily tasks — applying to jobs, enrolling in benefits, swapping shifts, managing time, and accessing and updating payroll information — with speed and ease.
While there are three primary benefits of human capital management, there are many reasons why companies should consider evaluating their current processes. Whether or not your organization is already using an HCM system, or is still using older processes and disparate software, employers should consider finding an industry-leading HCM system, such as PayNW's powerful HCM platform, if they fall into any of the following buckets:
Some companies may still be managing processes such as payroll, HR, and time tracking manually, creating inefficiencies, errors, and wasted time. And sometimes, even with an HCM system, they still run into these issues without the right technology partner behind them.
When these processes begin to overwhelm your managers, your leaders can feel buried under administrative tasks that distract from strategic business priorities.
If you have said to yourself “We’re spending hours on payroll and HR tasks every week—there has to be a better way to simplify and automate this," then it may be time for a change.
Whether the tools are already at your fingertips, or simply non-existent, that's not something that you should simply put up with. It's not the norm.
Many organizations often have existing systems in place. However, as a result of poor implementation, limited training, or a lack of vendor support, the systems are largely underutilized. That's why it's just as important to find a trusted HCM provider and technology partner, that ensures you are getting the most out of your HCM system.
You should never say to yourself "I don't know how to do / use that" or "I didn't know that was there", because if you do, you may as well not even have an HCM system, and certainly are not encompassing the idea of HCM into how you manage your organization.
You might be saying "well that could be anybody". Well, everyone should consider an HCM system if they want to grow.
For starters, growing your business requires requires growing your workforce. There's no better way to grow your workforce than by utilizing modern recruitment and onboarding tools through an integrated HCM system.
But more importantly, the larger your workforce becomes the tougher it is to manage it. You need the tools in place that can grow and evolve in tandem with your organization and your operational needs. That is what an HCM system is designed to do.
Whether or not you plan to hire more payroll and HR professionals to manage those extra employees, or can't afford to do so if you want to hire those extra employees, both are made possible through HCM software.
An easy-to-use HCM system makes hiring, onboarding, and training new hires simple, and turns them into productive employees faster. That goes for the average worker and your HR and payroll team.
The tools of an HCM system also increase operational efficiency and streamline payroll and HR tasks and responsibilities, giving your team time back to focus on more initiatives and tasks. In other words, with an HCM system, you don't need to hire payroll and HR professionals as quickly as you hire more "regular" employees, because you've given your current team the tools to do more work faster, smarter, and easier.
Yes you read that right, an HCM system does provide an ROI for your business, just not how you may think.
While the ROI of HCM is not as straightforward as a monetary ROI, the impact it has across your organization provides you with an intangible ROI only achieved through an HCM system.
HCM software can provide an ROI for your business by:
Choosing the right payroll and HR software is no easy task, and there are many things to consider, including:
If you're not sure where to start, don't panic, because we have a free HCM Buyer's Guide to help you through every step of the process.
Or, if you are ready to get started with a trusted provider that places an emphasis on partnership and support more than anything else, contact us today.
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Mike Anderson : Aug 23, 2023 9:00:00 PM
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