Human Capital Management (HCM) Technology 101
What does Human Capital Management (HCM) Technology Offer?
As a human resource professional, where do you spend most of your time? Working with colleagues to solve big business problems? Implementing employee development programs aimed to increase retention? Or is your day mired in the day-to-day of collecting paperwork, hand-coding the data into a spreadsheet and trying to keep up with endless files?
If you’re like most HR professionals, the answer is the latter. To help combat this administrative nightmare and allow HR to focus on bigger-picture initiatives, organizations are investing in Human Capital Management (HCM) technology.
What’s HCM, you ask?
Think of HCM technology as a one-stop-cloud-based-shop designed to consolidate and simplify ALL your people management needs from recruiting and hiring, to paying, managing and developing employees. If you’re currently mixing and matching solutions, finding unified technology that houses all the tools you need to find, develop and retain employees will make you more efficient, reduce the chances of error and improve employee satisfaction.
Here’s a look at the 7 key features and functionality HCM technology offers:
- Applicant Tracking System
- Time & Attendance
- Reporting & Data Analytics
- HR and Benefits Administration
- Learning Management
The Key to Attracting Top Talent
An Applicant Tracking System (ATS) is designed for HR and recruiting teams that care about hiring the right talent quickly and effectively. The way candidates are applying to jobs is changing. People are no longer willing to spend 30 minutes on one application, nor do they always do it from their computer. A quality ATS will allow applicants to apply from anywhere, on any device, at any time. It will also provide the metrics you need to determine where your best candidates are coming from, find bottlenecks and catch missed opportunities.
Set Your People Up for Success from Day One
A study found that highly engaged employees were 87% less likely to leave their companies than their disengaged counterparts. With an onboarding solution, employers are empowered to connect with new hires in a more engaging way by reducing the amount of paperwork to accelerate productivity. Employers can also reduce compliance risk by ensuring all proper documentation and onboarding materials are reviewed and completed in a timely manner. Onboarding no longer means sitting in a room for hours filling out paperwork. The right onboarding program can help you connect with your people and create a meaningful start.
Monitor and Control Time & Payroll Costs
Accuracy between time and payroll is no longer a nice to have – it’s a must. Manually tracking hours via time sheets and re-keying employee hours can lead to payroll errors and frustrated employees. Or if you’re using a solution that requires you to import or transfer files, there’s a better way. When time information flows directly into payroll, you have a single source of truth that increases efficiencies and ensures you’re capturing the right information.
Dive Deeper into HR Data
According to McKinsey, the average employee spends 19% of their workweek searching for data. Imagine if instead of spending countless hours digging for the information you need, HR data could be displayed visually via interactive charts and graphs. Many HCM solutions are offering human resource data analytics tools to help identify key business insights by extracting and compiling data across their HR, payroll and time solutions.
Make Benefits a Competitive Advantage
Traditional benefits are essential but they’ll never become a competitive advantage if organizations don’t have unique and tailored benefits for a multigenerational workforce. HCM technology provides the tools to help businesses reduce administrative tasks associated with open enrollment and benefit elections.
Improve Employee Development
When it comes to helping employees grow and develop in their careers, offering an HR solution that prioritizes performance management and offers employees easy access to view goals, participate in training and development and communicate with managers is key to increasing overall engagement and making employees feel valued.
Payroll Doesn’t Have to be Stressful
For decades, payroll has been a manual process that’s the root cause for many HR headaches. From eliminating compliance concerns to reducing administrative effort, HCM technology can completely automate payroll, making the entire payroll process seamless. With a single system for HR and payroll, you’ll never have to worry about re-entering employee updates. Changes made in HR flow directly to payroll, ensuring employees are paid accurately and on time. And with technology built to ensure tax compliance, your payroll solution can eliminate the challenges tax season present.
Engage Your People Throughout Their Career
Forty-five percent of organizations point to employee training as one of their toughest challenges. Why? Because employers are spread too thin to create dedicated courses and individual training programs that meet the learning needs of employees. But with a dedicated learning tool, you can create training courses that deliver personalized content and track course completion. Take compliance training for example. Employers are required to provide staff with the proper training, but without a solution to provide an accurate tracking record, how will you prove what’s been completed in the event of an audit?
Paycor helps more than 30,000 organizations manage their most critical asset, their people. We offer a unified HCM platform, with payroll at its core, that streamlines and optimizes nearly every aspect of your organization. From the way you recruit and onboard, to the way you engage, train, and retain employees, we can help you make a difference in your organization. Click here to take a guided tour of our platform, or if you’d like to go in-depth on each of our solutions, check out our product brochure.
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