What Is Human Capital Management (HCM) and How Does It Help My Business?

Human Resources

HCM software

Is payroll and human resources (HR) administration hijacking your day and robbing your productivity? Are you losing the best people? Is the employee experience you offer uninspiring or even irritating? Is it threatening your credibility and respect among employees? A lack of automated HR support may be costing today’s business leader a great deal. But it doesn’t need to remain that way for your business.

Gartner defines human capital management (HCM) as a set of practices related to people resource management. It’s the process of hiring the right people, managing workforces effectively and optimizing productivity. Today, HR professionals are tasked with identifying, developing, managing and retaining a talented workforce while also adhering to legal, regulatory and compliance requirements. HCM software can help them accomplish these objectives and improve HR processes across the entire business. HCM has evolved from a mostly administrative function to a critical enabler of business value.

What Is HCM Software?

Without waxing philosophical and turning this into a conversation over coffee and cookies (the store-bought kind) at an HR convention, we won’t compare human capital management to Utopia. But, there’s no harm in admitting that HR and payroll professionals really, really like it. Why? Because it makes their jobs so much easier.

HCM software collects valuable data on every aspect of employee efficiency. It supports all aspects of the HCM function and eliminates manual HR processes, helping employers manage and look after their employees. Such software may bring talent planning, management and analytics together in a single system so companies can help people reach their full potential now and into the future. The best HCM software makes it possible for a company to manage HCM processes effectively and support its workforce in faster, smarter and more agile ways than it ever could before.

What Are the Benefits of HCM Software?

1. Systems Function Integration

HCM software is an all-in-one solution. Instead of having separate applications for talent management and workforce analytics, human capital management software integrates those functions into one platform. What’s more, HCM software can help an organization plan future staffing needs by sharing information with other enterprise applications, such as payroll or financial management software

2. Employee Engagement and Enablement

A shift in the fundamental nature of work, new technology and the needs of new generations are changing how work gets done, employees engage and organizations operate. By implementing employee goal-setting into an HCM system, employees can better understand their current objectives and expectations, as well as easily track and highlight their achievements in the system.

Additionally, employees can build out their own internal networks with an HCM system. The ability to connect with peers and find mentors with a specific set of skills and experience helps employees develop or further their careers and improve their understanding of the business.

3. Streamlined Payroll Processing

There’s a lot that goes into supporting your operations. But nothing more important than ensuring accurate paychecks each and every time. Uniting HCM systems and payroll systems within a single platform supports company operations from any location, leading to a host of strategic business and cost-saving advantages:

  • Decrease in labor costs
  • Reduction of payroll processing costs
  • Elimination of manual data entry
  • Improvement in employee productivity (paid on time – woohoo!)
  • Ensured data compliance

4. Talent Development

Change is the constant that businesses must prepare for and the skills and jobs that are valuable today may not be the same in a few years’ time. Across organizations, a personalized employee experience, including training and learning, is now the expectation. For workers to engage and grow with an organization, they need visibility into the work that matches their skills, interests and job histories. HCM systems can enable access to information that helps employees plot their career trajectories, connect with others who’ve gone before them and identify openings and potential training opportunities. The organizations that will thrive are preparing to enable their employees with new skills and extend competencies.

How Do I Choose the Right HCM Software for My Business?

At Quanta HCM, we know that great talent doesn’t grow on trees. That’s why we tailor solutions to help meet your company’s recruitment, hiring and onboarding needs. You can manage job postings, collect applications and run background checks through one simple, comprehensive solution. We automate your workflow and provide consultation on ways to reduce your administrative costs and drive business outcomes. And did we mention that we are fully capable of handling the payroll and scheduling needs of your business?

Contact us today or book a 5-minute consultation to schedule a personalized demo of our HCM solution. Our employee lifecycle specialists are waiting to help you manage your most valuable asset from pre-hiring to retiring. 

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