Even before the COVID-19 pandemic that sent most organizations into remote-work mode, many businesses were already in the midst of a major transformation. More and more employees are coming from generations with different expectations about their day-to-day work environment, such as Millennials (average age: 32) and Zoomers (average age: 16).
In fact, Millennials alone are expected to make up 75% of the workforce by 2025, and these major demographic changes have caused organizations to find new ways to manage their most important resource—their employees—through technologies like human capital management (HCM).
Read on to learn a bit more about what HCM is, what its benefits are, and some new HCM features that could improve your workplace experience. Let’s get started.
What Is Human Capital Management?
HCM is the term used for the human resources (HR) practice of recruiting, managing, and developing your workforce. HCM is based on the principle that building a successful company starts with an engaged workforce. (After all, a company without any employees isn’t much of a company at all, is it?)
But HCM goes beyond merely core HR functions. It also involves workforce planning, learning, building inclusivity and diversity, and much more. A successful workforce management strategy requires that HR leaders act proactively. To do so, modern companies rely on HCM software to support all the functions of HR in one place.
Human Capital Management Software Features
In addition to streamlining and supporting human resources, HCM software also enables leaders to make smarter decisions when it comes to hiring, managing, and development. New technologies like artificial intelligence (AI), machine learning, and the cloud are leading to significant advancements in the software.
The features of a particular HCM solution can be diverse, but most systems provide these core features:
HCM software plays an important role in finding, engaging, and selecting the best candidate for your company. The right solution will streamline the process by enabling a transparent and collaborative experience for the hiring managers.
Applicant tracking can help you find a needle in a haystack. By setting up your specific criteria (or even using AI), you can sift through mounds of resumes to find the perfect candidates for your open position. Applicant tracking handles tasks like posting job openings, storing applicant data, and screening. In some cases, it allows recruiters to rate applicants in a single database so that the hiring team can easily collaborate.
Onboarding features allow you to enhance the new-hire experience while also automating many operational tasks. You can create steps for new hires that need to be completed before, on Day One, and within their first few months of the job. These steps can include documents, videos, auto-assign tasks, compliance requirements, and more.
A workforce management feature helps your organization plan ahead by taking into account work and productivity of employees, including time and attendance, workforce planning and scheduling, leave management, and workforce analytics.
Payroll management is a core function of HCM and includes integration for payroll, benefits administration, compliance management, and employee data management. These functionalities can remove many administrative tasks from HR to free them up for more strategic projects, all while keeping your employees paid and the company compliant with evolving payroll rules and regulations.
Employees prefer to receive feedback as they complete projects, and performance management can help you deliver that recognition. The feature allows employees and managers to set and track goals, create a feedback channel, and receive notifications of new comments, goal status, and completion.
Analytics and Reporting
With your HR data in one place, you can easily generate detailed reports on almost any data within the software. The analytics and reporting functionality gives you the information to make informed decisions, turning your HR department into a strategic resource.
Workflows and Approval Management
By automating and delegating your approval workflows, you’ll save time and gather what you need more quickly. Features like this one allow you to assign people to fill in their own information to keep up with data entry while reducing mistakes.
Benefits of Human Capital Management Software
HR tasks can be labor-intensive and ripe for error. But HCM software can change all that. The technology can help companies cut costs and reduce mistakes by automating tasks. It can also help to manage even massive amounts of documents and information in the quest to improve an organization’s data analytics and reporting.
The biggest impact of HCM software, however, is on employees. A happy and engaged workforce is one that will be more productive, leading to a company’s success. When you think about it that way, it’s clear that HCM isn’t just a new tech tool—it’s a strategic investment.
Getting Started with Human Capital Management Software
Organizations are implementing HCM software to improve planning, efficiency, and overall employee experience. If you’re ready to start investing in your people, Surety Systems can help.
Our senior-level HCM software consulting team is experienced with all the major solutions, from Infor to SAP SuccessFactors to Workday. We can partner with your team to determine what software is best for your organization and even help you implement it.
Contact us today to get started.