Being an HR manager is no small feat. Apart from having tasks that include managing the payroll, recruitment, administration of benefits, training, planning events, creation of culture, mediating between employees in conflict, and managing workforce HCM, HR managers should also possess a combination of skills like being a good communicator, having peoples person skill, being good at solving problems, budgeting, training, and decision-making, having stronger data skills and so on.
As the driving force behind an organization, HR managers are given much pressure to fulfill all their tasks propitiously. Not doing so will have serious repercussions that can end up in lawsuits, poor credibility and not being taken seriously –serious issues no one wants to be associated with—and we all know that HR managers represent the company a lot. This is where (HCM) comes in.
So, what is HCM, you may ask? Human Capital Management (HCM) is what you call the set of processes used for managing functions associated with hiring, managing, developing, and optimizing the workforce of an organization. Simply put, HCM is an approach in human resource management that sees employees as assets that should be invested in and managed in such a way that it results in the overall improvement of business value. To differentiate between HCM and HRIS, HRMS Solutions CEO Mike Maiorino provides this clarification: “HCM software includes all the elements of an HRIS (human resource information system) but adds Talent Management and global capabilities such as multi-lingual, multi-currency, country-specific formatting and possibly location.”
In the traditional sense, HCM may already exist in some companies and are depicted as the personal employee files that are inside file folders and cabinets and run the risk of getting lost or stolen. It may also be in the form of employee data saved as files in the computer which requires time to update.
Human capital management software (HCM software) refers to applications that aim to help an organization manage and maintain its employees. HCM software’s main function is to automate HR processes such as hiring, payroll, performance reviews, and training. It is an integration of various software solutions, including payroll, productivity, time-sheet, and other functions into one platform.
HCM software is divided into the following categories:
1. Core HR
- This includes benefits administration, compliance management, employee data maintenance, onboarding, and payroll.
2. Talent management
- Features compensation management, learning, performance management, recruitment and succession planning.
3. Workforce management
- Comprises budgeting, time and attendance management, labor scheduling and workforce planning
4. Service delivery
- This includes employee self-service, HR help desks, intranet portals, and manager self-service
Why Should I Rethink HRM with HCM Software?
HCM is more than just doing all the key HR functions and storing workforce data. HCM should be implemented strategically. A plan should be created to recruit and retain the best talent, optimize the productivity levels of the workforce, and utilize the skills of the employees to push the business to success. For this reason, small to mid-sized businesses are getting help from HCM solutions to fast-track and improve time and attendance keeping, payroll, HR, and other functions. Let’s look at the benefits HCM has to offer small and mid-sized businesses:
1. Scheduling is more efficient.
- The task of workforce scheduling to meet customer requirements becomes more efficient and convenient as team leaders can now assign the right talents equipped with the right skills, certifications, and capabilities at the right time and right place.
2. Saves time on administrative tasks.
- By automating and streamlining administrative tasks like time off requests, overtime approval, attendance and absence management, HR managers save more time and can focus the time and effort saved by workforce HCM on other tasks that can bring more value to the company.
3. Reduces payroll errors.
- Because time and attendance management is automated, the process becomes more accurate than manual processing by HR personnel, and payroll errors that usually come with manual payroll processing are significantly reduced.
4. Employees are engaged.
- HCM makes it possible for employees to manage their attendance, time off requests, and other processes that usually take time because it must be queued for the managers and HR team. This results in saved time and more employee engagement.
5. Reduces costs and increases productivity.
- With HCM in place, the activities, attendance, and inputs of the workforce, staff become visible in real-time, and this results in improved productivity rates and reduced costs.
6. Decreases dependence on IT.
- A cloud-based HCM solution is user-friendly and is easy to set-up, run, and access. This decreases dependence on the IT staff for maintenance of service and constant buying and updating of software licenses and servers.
7. Centralizes records.
- By simplifying and centralizing employee records, employees and managers get real-time access to reports and data, and data compliance is ensured.
Human capital management should be implemented after a close examination and understanding of each employee’s profile, their skills, experience, certifications, characteristics, and knowledge. Below are the proper components of how HR managers should implement HCM in their organizations:
1. Have clear Human Capital goals.
- Create clear human capital goals by facilitating a clear understanding of the company’s current state and how you can bring it to its desired state. Communicate the goals to the employees to improve their work productivity and accountability. Examples of human capital goals include recruiting the best candidates, developing the skills of the employees, creating engagement programs for new employees, and retention of the best employees.
2. Ensure clarity in direction.
- Facilitating a clear understanding of what the business needs means getting to know everyone, and everything involved including the understanding the needs of senior management, clients and customer; expectations of the stakeholders; knowing the financial limits, and learning about employee requirements. Data should be collected, issues discussed, and an analysis of the workforce’s current state versus what they expect from the company two years later should be undertaken.
3. Track every progress and failure.
- Create an accountability system that can monitor the progress of each implemented plan to find out if a strategic plan or goal is working and whether it should be edited, canceled out, or added into. Failures and success will be monitored and assessed with this system in place.
4. Create a successful Human Capital implementation plan.
- Among the components of a successful implementation plan include clarity of goals and strategies, assignment of an accountable resource, allocation of budgets, setting a time frame and deadline for the implementation of the Human Capital plan.
5. Create strategies for achieving goals.
- After the establishment of goals, an organization may then lay out the strategies for achieving them. It is essential to create long-term plans that will ensure the job satisfaction of employees and to assign tasks to the workforce staff based on their interest, expertise, education, and skills. Managers should also facilitate constant communication, reviews, and feedbacks to track the employees’ development as well as to manage their expectations.
As small businesses and start-up companies continue to flourish, with it comes the growth in demand and expectations from the customers, the investors, and the stakeholders. Human capital management software solutions give HR managers the relief they need to accomplish all the tasks they have, hire the right talents they need, retain the top talents, and drive the business to success.
If you want to know more about workforce HCM and what it can do for your business, click below to download the white paper for free.
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