With the ever-changing dynamics of an organization, a Human Capital Management System can assist in managing the most valuable asset to the company—employees.
FREMONT, CA: Human capital management is a complex process with a comprehensive set of practices of recruiting, managing, developing, and optimizing the human resources of an organization. On top of that, managing a company’s human capital is as critical as the systems used to govern them. Enter: HCM systems replacing the tangled web of spreadsheets, standalone systems, or add-ons to financial ERP caused by the multiple software used by the organizations. New and improved HCM systems help companies comply with the laws of the land, cut costs, save time, and, most importantly, leverage their invaluable assets – employees.
Organizations present in several countries need to comply with their respective laws. Non-compliance with the local government regulations puts the business at risk. Hence, organizations need to meet and fulfill all reporting requirements. As an instance, few countries have minimum data retention laws, while others have stringent regulations. An effective HCM system seamlessly manages compliance needs across geographies and integrates regulatory and workforce analytics to make better compliance-led decisions.
HCM systems allow greater cost efficiencies for a business to implement better HR strategies. An HCM eliminates the need for manual calculation of payroll, which removes the scope for error, leading to overpayment with no audit trail. Moreover, managing and reporting employee attendance and leave consumes and organizations time and money. An HCM system saves time on processing costs and unlocks analytics. In the same vein, implementation of HCM systems reduces HR administration and compliance cost, lower technology costs, and data-driven decisions.
Along with compliance and cost, an HCM must evolve and keep pace with the changing realities. The market is witnessing an overload of talent in the market. However, it is still difficult for these organizations to find the right talent in an acceptable timeframe. HCM systems have evolved, and they include solutions that accelerate hiring. They are capable of reading CVs with natural language processing and explore job portals automatically. While recruiting is essential, retaining talent is also significant. Organizations understand that taking care of an employee’s personal needs, health, and aspirations is critical. Thus, organizations believe in wellness that helps employees both at work and off work.
HCM systems have evolved from a monolithic system to a cost-saving, regulatory compliant, and a talent acquisition system. Shortly, crowd sourced continuous feedback mechanisms will replace performance management systems. In a broader sense, HCM systems will create frameworks assisting businesses to collate data, processes, and finding the right people best suited for the organization.