What is a Human Capital Management (HCM) solution?An HCM solution is an integrated system which automates Human Resources (HR) processes and provides employee self-service (ESS) capabilities. HCM systems reduce labor costs, increase efficiencies, and optimize processes.
Many contemporary HMC solutions follow the cloud-based, Software as a Service (SaaS) delivery model and include HR, payroll, recruitment, and/or Time and Labor Management (TLM) modules. These solutions require no hardware investment, ensure that the most current version of software is always used, and are securely backed up. They are monitored 24 hours a day, 7 days a week, 365 days a year, providing optimal reliability. They are also completely customizable for any size organization, so the system can grow as your company grows.
10 ways a HCM solution can improve the life of your business:
- One Unified Platform – Give managers single-source access to real-time employee data. Reports show that integrated systems reduce compliance risks, produce accurate time and attendance data, improve employee productivity and engagement, and create valuable data analytics and reporting for exceptionally informed business decisions.
- Recruiting – Finding the most qualified talent in a competitive job market can be challenging. Having a robust recruiting system can assist with these challenges. HCM solutions help hiring managers source, track, and evaluate the best candidates with the following components: job posting, applicant and résumé data management, interview tracking, background screening, applicant communication, and streamlined conversion of application information into employee files.
- Human Resources – Wouldn’t it be nice to be in fire prevention mode instead of firefighting mode all the time and be able to focus more on the people than the paperwork? The right HR management technology can help you do just that by reducing paperwork, producing accurate results, and automating things like onboarding/off-boarding, incident and discipline tracking, asset management, and, yes, the dreaded “C” word...COMPLIANCE. Additional critical elements include the management of all employee data and the ability to host all company-related documents such as employee handbooks, procedures, and safety guidelines.
- Benefits Administration – Employee benefits are typically the second largest business expense after payroll and are often viewed as a form of compensation. HCM systems offer businesses a solid solution that include: benefit plan overviews, defined eligibility, open enrollment communications, and ability for employees to make life event enrollments/changes.
- Payroll – Accuracy is critical in payroll. A sophisticated HCM system offers a built-in, robust, geospatial tax engine automating look-up of multi-state and local applicable taxes. Standard statements and reports also become available in real time without conducting pre-pay processes, while payroll managers retain the ability to create custom reports simply and quickly. Employees can also view pay statements securely from their electronic devices through ESS.
- Time and Labor Management – Utilizing a cutting-edge, automated time and attendance system streamlines processes associated with payroll. TLM offers employee scheduling, accrual tracking, job costing, efficient management of time off requests, and many more feature. These systems help businesses eliminate time theft, paper time cards, and human error.
- Scheduling – Does your organization need more features than those included in a basic TLM scheduler? If so, an enhanced scheduling module encompasses all of the TLM features and functions and adds budget and workload definition, open shift visibility, scheduling to skill and proficiency, color coding for rapid visual recognition, and the ability to schedule change alerts.
- Reporting – With an integrated solution, you can track all employee information and create reports that provide actionable information for decision making. Reports can often be exported in multiple file type options. On-demand, customizable dashboards also provide instant and real-time workforce data. Since reporting is also a critical function when it comes to compliance, HCM solutions will create reports for things like ACA, payroll, and tax filings as well as for EEO and FMLA.
- Improved Security – HCM solutions can improve your business's security by reducing the amount of paperwork and related security risks. These systems include - or should include - very tight security protocols with access rights carefully customized to your organization's needs.
- Measurable ROI – Investment in HR software can lead to substantial cost savings. If you choose software that specifically meets your business's needs, you will be able to reduce costs to deliver HR services because many functions will be completed by the software and others will take a lot less time. Reduced costs will also come from increased manager/employee accountability through self-service, reduced data entry errors and duplication, and improved insight through reporting and analytics. These solutions can also help avoid costly pay and accrual errors and better manage staffing to reduce unplanned overtime.
What do I do next?
- Determine your needs. Evaluate the needs and priorities of your business. What do you need/want from a new HCM Solution? What does management want to track? What sort of metrics and reporting capabilities are desired?
- Create a checklist. You will need a detailed needs and requirements checklist or spreadsheet.
- Clarify your budget. Know how much can you spend on software and implementation.
- Demo the system. Compare the HCM to your requirements spreadsheet. Be prepared to spend some significant time on evaluation.
- Make the decision and enjoy the capabilities and rewards the new solution will provide.
Need help with the process? Get in touch and let us help.