Does HCM only benefit the global conglomerate?
HUMAN RESOURCES (HR) is a field of service within an enterprise that deals with talent. Although it means different things to different organizations, there are several tasks and jobs that the division performs.
For young enterprises, it is limited in scope and only generally covers recruitments, day to day employee record administration, and monthly payroll. However, as the organization grows, it takes on several functions including appraisals, grievance redressal, training and development, and many more.
In order for growing businesses to retain their competitive edge, they need a robust HR team that takes on new functions as the company grows and ensures that employees feel confident that the organization is looking after them.
Using a modern human capital management (HCM) system, HR teams can quickly go digital with their workflows and ensure that the company provides the best experience possible to employees.
According to experts, HCM is the optimized management, development, and deployment of human resources to deliver organizational efficiency, effective service delivery, and rewarding careers. HCM systems offer integrated, multi-function solutions that provide staff members, managers, and the organization with the data and interactive processes needed to deliver on HCM aims.
HCM isn’t just for the global conglomerate. It’s a tool that every business needs in order to better manage and plan the one resource that’s critical to its survival — it’s human capital.
Here are three ways HCM systems benefit businesses in today’s competitive world of business:
# 1 | Talent management
Whether you’ve got 50 employees or 500, a good HCM system helps you keep track of the talent that you’ve got in place and the progress that they’re making for you with regards to their key performance indicators (KPIs).
Further, HCM helps you keep on record how your talent has performed over time, the incentive they’ve earned, and the appraisals they’ve been given. Over time, this helps you learn more about your talent so you can provide them with the right opportunities for growth.
# 2 | Business insights
The business needs to know how it uses its staff — and whether everyone is performing well. Using an HCM, managers are able to keep track of employees’ contributions to the business which comes in handy during appraisals.
Further, it helps the company learn more about the business with regards to talent. For example, it helps managers spot turnover trends and retention hotspots, best sources of hire, and allows HR professionals to easily conduct employee compensation benchmarking exercises.
# 3 | Employee experience
Using an HCM, companies can easily improve the employee experience. Whether it is by identifying skills gaps or by helping provide training opportunities, an HCM system can help the HR team transform how employees engage with the company.
An interesting thing to note about HCM tools is that they’re also able to help automate quite a few administrative tasks for the HR team, which means, employees don’t have to wait to file for leaves or record company expenses — which lightens the load for managers and improve the employee experience at the same time.