HCM software is a game changer for organizations that want to manage their human resources better. HCM software is also able to identify top talent and give insights into trends in the workforce. HCM software allows HR teams to manage their human resources more strategically by automating HR processes and providing advanced analytics. You must manage your most valuable resource effectively to keep your business competitive. Your team, also known as your human capital, makes your company successful.
Human capital management solutions (HCM) support the strategic alignment of a company’s workforce with its overarching business goals. The broad toolkit of an HCM platform helps companies leverage employee strengths to improve the ROI (return on investment) for their workforce.
To gain more complex insights, large companies need an HCM platform. These insights drive compensation strategies, succession planning, and other aspects.
What does HCM Software mean?
HCM software is an integrated suite of tools designed to help organizations hire, train, manage, and retain high-performing, highly skilled workers.
HCM software is a core system for recording employee information. It is generally the organization’s main hr transaction tool for new hires, transfers, and promotions. This is according to fran maxwell, global workforce and organizational change leader at consulting firm protiviti inc.
HCM views the workforce as a business asset that can be optimized through strategic management and investment.
The importance of human capital management can be attributed to several factors, including.
- HCM helps Companies Attract Top Talent: Human capital management acknowledges the value that people bring to a company. It develops policies and processes around this value.
- HCM is a Powerful Tool for Employee Retention: The benefits of HCM go beyond attracting the best talent. For the same reasons, a good human capital strategy can help retain top talent. This experience includes growth opportunities. It has been proven that one-on-one coaching can increase job satisfaction by up to 47%.
- HCM Drives Engagement: Employees who feel valued and supported can have a better overall experience. They can feel more engaged with the company and their job. This can drive employee engagement throughout the organization. It has many benefits.
- HCM Increases Productivity: The right HCM Strategy — such as a robust onboarding program and training for new employees. This can provide team members with the tools to do their job better. It can increase productivity, both individually and at the organizational level.
- HCM Streamlines: HR functions and operations can give HR professionals clear strategies and practices to hire, manage and optimize talent. Teams can then increase their productivity and possibly reduce costs.
Features of HCM Software
Although HCM suites are available in a variety of configurations, organizations should focus on the following features:
Employee Data Protection: Companies must protect employees from violating privacy laws worldwide. The HR department is under pressure because it’s the one who has to manage the data of the employees. Storing all HR data in one location lets organizations know exactly what information they have on each employee.
Maxwell stated that the system must be able, at a minimum, to store employee data and provide reports. Maxwell said that storing data could be tricky depending on your company’s global nature and understanding the laws in each country.
Talent Acquisition: The module supports the hiring and onboarding process. It also has features for job requests, candidate screening, and candidate selection.
Workforce Management: This module allows organizations to record, understand and plan their workforce size. HCM software with workforce management features will allow managers to keep track of external workers such as consultants and freelancers.
Performance Management: HRM tools can streamline and automate the performance management process by allowing managers and employees to collaborate on performance records stored in a single system. This module allows you to set goals and track progress.
Training & Development: HCM software that supports an organization’s learning and growth strategy allows managers to match workers with training opportunities based on their personal development plans and lets employees choose their learning.
Employee Self-Service: Employees can also use the HCM System to submit expense reports, timesheets and view or update their data.
Management of Compensation: Organizations must be able to use their HCM tool to analyze and manipulate information about compensation to ensure that their compensation levels are fair to all employees. It can be used to plan compensation for the future.
Integrations: An HCM system must integrate with other critical systems of the organization, such as third-party payroll providers or enterprise resource planning systems.
How HCM will Transform Your Workforce
HCM is vital to building an effective workforce in a world where advanced skills are a must. It’s no surprise, then, that HCM’s approach to equitability has multiple benefits for employees and the organization.
An HCM strategy can be beneficial to your business in several ways.
HCM creates stronger and more collaborative relationships throughout your organization. Communication improves when employees understand what’s expected of them and what your company expects from them.
Reach your business goals quicker
You can reduce your employees’ efforts to achieve your goals by aligning their mission and goals.
Enhances employee engagement
HCM is focused on ensuring that everyone is working towards the same goals. Your employees will be more motivated when they feel that their goals align with your organization’s vision.
Increases employee satisfaction and retention
Your employees will stay longer with your business if you invest in their career development and give them the learning opportunities and tools they need.
Improves recruiting efforts
HCM creates a very appealing atmosphere for potential employees. You’ll attract the best talent when it’s clear that your company cares for its employees.
Creates a stronger culture
The company culture is constantly changing and needs to be nurtured. HCM can define and steer culture by being a source of truth about your company’s values and mission and by creating a structure everyone follows.
Best HCM Software Businesses Can Rely On
If you have hourly workers, this is the best HRMS. No matter how large or small your company is, it offers solutions that make hiring, onboarding, and management easier, faster, and more effective.
Kenz Innovation HCM
- Documents and signatures can be done electronically
- Payroll and hour tracking
- Automated onboarding
Kenz Innovation workforce management software can be used to manage all types business employees. You can use only the desired features and ignore those you don’t. You can save time by having employees enter data themselves. It is a great choice for startups and small businesses unsure if HCM software will be worth their investment. You can manage your employees as you wish without being forced to do anything more than what you desire.
Have you got a team that is always on the move? Workstream makes managing human resources easier for companies whose employees don’t sit at a desk. This software is designed for businesses that employ hourly employees.
Workstream simplifies hiring and managing hourly employees, especially for those constantly on the move. Hire applicants directly from your smartphone, reducing time spent on hiring and allowing for flexibility.
Workstream is also compatible with a variety of other HR platforms. This allows you to create a system tailored to your needs. Workstream can handle large companies like FedEx and Taco Bell but is flexible enough for smaller businesses with hourly workers.
Workstream is a great relief for business owners who feel they must jump from one thing to another. Workstream allows you to manage all job postings regardless of the platform. Text messaging makes it easier for applicants to apply. The automated response to applicants’ text messages that prompt them to schedule an appointment will allow you to schedule interviews quicker.
Workstream is the best option for hourly businesses that want to hire and manage as easily as possible.
- Tracks and records hours of attendance
- Onboarding support
- Innovative goal tracking
BizMerlinHR works best for larger and mid-sized businesses. However, it is still an excellent option for hourly employees. BizMerlinHR has a lot to offer for its price. Still, some features are overkill and unnecessary for small businesses. This software has a unique feature that allows you to set goals for your business and receive notifications when they are achieved. This type of objective goal-tracking is an excellent tool for companies that struggle to motivate their managers and employees.
- It integrates with many tracking systems and allows you to customize the management software.
- Startup plans that are affordable but grow with you
- Specializes onboarding
Is your business prone to high turnover? You probably spend a lot on hiring and onboarding if you work in the retail or restaurant industries. Gusto can be a great option for small businesses that spend a lot of time hiring.
Post a job and track applicants right from the app. Gusto provides a human resources specialist to answer all your questions. This is something that you won’t find on most platforms.
- Directly pay employees
- Innovations continue to be added.
- Manages benefits and payment
UltiPro is an excellent option for managing a large company or chain with many hourly workers. This makes scheduling shifts easier when employees constantly change their time off requests or missing shifts.
UltiPro can also help manage employee performance reviews. This is helpful when all managers are not aware of the performance of every employee. UltiPro is continually improving and changing, according to users. This constant growth is attractive to large companies looking to reduce wasted time. It can be frustrating for smaller businesses that don’t wish to continue struggling to learn new methods.
- Easy-to-use and powerful analytics
- Features to increase employee engagement
- Good customer service
iSolved offers a good option for businesses that like to make data-driven decisions. It provides analytics that is more detailed than other software for human capital management but still easy to understand and use. With these analytics, you can build your management system to meet your business’s and employees’ needs.
iSolved has several features to improve employee engagement, making it easier for you to make your business and employees better. iSolved can be too complicated and overwhelming for companies that would prefer to manage employees without spending much time digging through data.
- Specially designed for retail employee management
- Each employee is offered a full-service monitoring system that covers the entire process.
- The best for maintaining compliance in high turnover situations
Retail? UKG Ready could be the right HCM solution for you. Management solutions are available for each step of the employee experience, from hiring and sourcing to exit interviews.
UKG Ready makes it simple to comply with all regulations despite the high retail turnover volume. This system reduces repetitive tasks and makes your retail business more efficient.
- Restaurants can now have a whole management system, not just a human capital management system
- Easy to install and use
- It provides insights and opportunities for your business to grow.
Toast is a platform for restaurants, food, and beverage industries. It is more than just human capital software. It also includes point-of-sale.
This solution is a great time-saver for smaller restaurants, bars, and food trucks. Toast will be much easier to install and integrate into your restaurant than using different software to meet all requirements. However, some restaurants may not like the limited flexibility of Toast.
- Flexible enough to be used in a variety of industries
- Designed to streamline business processes and save the company money
- Good analytics for smart decisions
Sage People will work for you whether you have 150 employees or 5,000. Sage People is a great option for growing your business if you anticipate an expansion shortly.
Sage People is a great choice for companies that demand high functionality from their software. Sage People streamlines processes to help you save money and time when managing employees. Its flexibility allows it to be adapted to a wide range of business types.
Making the most of HCM software
Organizations must be aware of certain things that will prevent them from getting the maximum benefit from HCM. The following are the most important:
Bad Data: Maxwell says that an HCM system’s performance depends on the quality of the data it contains. This is not a problem that’s exclusive to HCM software. He said data accuracy was crucial for organizations wanting to get the most out of the HCM tool.
Failure to Develop a Good Strategy for Implementation: The majority of well-known HCM systems work, and they work well. Maxwell. The implementation process and the organization’s ability to adapt new practices and processes determine the success of an HCM application in a company.
Not Consulting Employees: Companies should consult employees before implementing major changes to their HR systems. Some companies move ahead with the process before informing their employees. This can slow user adoption, that’s necessary to ensure that the system performs as expected.
How do you choose a Human Capital Management System?
Not all HCM systems are the same. You need to select a system to meet your needs to build a system to support your business goals and your team.
How do you go about doing that? When choosing a system for managing human capital, you should follow these steps:
Define Your Needs
You must define your needs before selecting the best HCM system for your business. This means you need to define your needs. What are we trying to achieve with our HCM? What are our business goals? What features and functionalities will we need to achieve those goals?
Determining your needs and wants before looking for HCM software for HR and payroll can help you evaluate the various options. It can also help you choose the right option for your business and employees.
Define the scope of your project and its details
The first step is to define what you need and want from your HCM software. When is our solution needed? Define main stakeholders. What is the budget? Determining the scope of your project and its details in advance will allow you to evaluate HCM software better. Choose the solution which is best suited to your needs.
Options available for research
It’s time to do your research once you clearly understand what you need and want from HCM software. Information about the various options available on the market is important. Compare the features, pricing, and functionality of each solution.
After identifying possible HCM solutions, do more research on the software to learn about other users’ experiences. You can read reviews to see how other companies feel about the company and software. It’s great if the software gets a lot of positive reviews. You will likely have a bad experience if the reviews are mostly negative.
Present Potential Solutions
It’s time to share your decision with key stakeholders and the company’s leadership. Then, you can proceed with the project. Highlight the value your HCM solution can bring to the business to increase its chances of approval.
Business Tips to Choose the Right HR Technology for Your Business
Here are nine benefits that can be derived from implementing HR technology in your business.
A more Efficient and Targeted Recruitment Effort
Are you and your manager scrambling for talent when it’s time to fill an open position? You can use HR technology to make faster and better hiring decisions.
This software can include an applicant tracking program to manage the hiring processes. You can build a database with qualified resumes to search for and contact when a new position is available. Your managers can then rely on software to help organize interviews, track feedback following interviews, and rank candidates.
The system will track the results if your company includes personality or skill assessments. These tools can help you improve your hiring process. They will ensure the people hired are the best fit for the job.
Analytics at Your Fingertips: Actionable Workforce Analytics
Your HR specialist will be able to access data that can help you determine why your business isn’t increasing as you would like. Does one department have a high turnover rate? What are the associated costs of this turnover?
You can track costs and employee characteristics by integrating your HR data. Planning will be easier if you have workforce analytics available at all times.
Supporting HR Compliance Issues
Are you planning to hire so many people that the government will require COBRA or FMLA?
As soon as you reach the threshold for employees, HR software will help you comply with the relevant compliance requirements.
Reduces the Chance of Data Entry and Duplication Mistakes
Do you still use a paper system for payroll, benefits and vacations, government reporting, performance evaluations, or HR? Chances are, someone in your company manually enters data at some stage.
Manual data entry is not only time-consuming but also error-prone. Automating redundant tasks and integrating data system-wide, robust HR technology will help you improve your HR processes.
Suppose an employee chooses a new health plan during open enrollment. In that case, the change is automatically carried over to their payroll deductions – and no manual updating is required.
HR Strategy: More Time
Transferring data between systems or doing tasks on paper takes much longer. Time is money, particularly when you think about how much time your HR team has to spend manually entering data and fixing mistakes.
What is the cost? Is this the best use of time and skill for your team? What if your team could spend the same time on strategic initiatives?
Your HR team will be able to save time by using the right HR technology. The HR team will have more time for revenue-generating tasks, like planning your growing workforce or helping managers to identify and retain top talents.
A smooth onboarding for new employees helps them settle into their roles faster and gives a good first impression of your business. Your new hires can start learning about their jobs and teammates immediately instead of spending their first day at work filling out paperwork.
Consider using HR technology platforms with a paperless option for onboarding. It’s easier to track the information you need for each new hire, including I-9 forms and tax documents. It also helps to establish a documented, standard process for all employees.
Hire Across State Borders with Less Burden
You’ll want to know the employer requirements of each state if you plan on expanding your business into new markets. State taxes and regulations can differ dramatically. HR technology can provide you with the information and resources that will help you better understand state laws and regulations and possibly avoid heavy fines and penalties.
Secure and Convenient Access to HR Documents at all Times
Securing electronic records is easier than storing them in a locked file cabinet. The records are password protected and won’t be lost in a flood or fire. Who owns the filing cabinet?
It is easier to retain documents as per law when you store all your employee’s data on a cloud-based, integrated platform. You can archive a record if someone is terminated or inactive. However, you can still access their information later if needed.
Room for Growth
What do you think of your business in five years? What about 10 years from now? You’ll be more prepared to achieve your vision for your business if you choose HR technology aligned with your HR strategies. This means choosing a platform that offers scalable features and managed services to help your business reach its goals and can adapt as the needs of your company change.
The Future of HCM
The technology revolution is changing the way we do work. While the traditional hierarchical structure is changing, so too is the workforce. It’s becoming flatter and agile, with more mobile, global, and diverse teams. HCM is also evolving quickly. You can expect to see the adoption of familiar technologies like SaaS, mobile, and AI and newer technologies such as machine learning.
- Mobile apps that are self-service and consumer-grade empower HR, workers, and managers to increase engagement and productivity.
- Collaboration with peers and mentors within the organization can improve productivity.
- Chatbots provide answers faster to constituents.
- AI can do impossible things for humans, like quickly analyzing thousands of resumes or data points to find the best candidates.
Human capital management software simplifies workforce management. Automation will result in fewer mistakes, greater transparency, and less time devoted to routine administration. When liberated from tedious tasks, the HR team will have more time to think strategically and be proactive.
Finding the right HCM software that meets your needs is important to optimize your human capital management system. There is an HCM software solution to suit your needs, whether you want to improve employee engagement or streamline HR processes. You can make a well-informed decision by carefully evaluating all your options.
To strategize, execute and achieve the company’s long-term goals in HR, the company must invest in the best solution that suits its goals and priorities. These HCM solutions cover most HR needs to align employees with business goals.