Your employees help you earn money, but at the same time businesses typically spend a lot on them. This begs the questions: How can you maximize the value of your workforce while minimizing what you spend on managing it?
Human capital management systems can significantly help increase the efficiency and cost-effectiveness of your business.
Benefits of Using Human Capital Management Systems
A company that supports human capital management offers employees a more comprehensive system for measuring performance while at the same time clearly defining expectations.
Managers need to rate, reward, and hold employees responsible for achieving business goals, continuously innovating and supporting gradual improvement.
How Human Capital Management Works
Behind the scenes, HCM is either part of an enterprise resource planning (ERP) system or a different suite that is integrated with the ERP.
Over the years, the term “HCM system” has replaced the outdated “human resource management system (HRMS)” and “HR system” as the umbrella term for software used in both talent management and employee records processes.
The employee records element provides management with the information the need to make the right decisions based on all data gathered.
Talent management can cover many other aspects, including dedicated recruitment modules, learning, compensation management, and performance management, along with other applications related to developing, attracting, and retaining employees.
Streamlining Workforce Management
Similar to HRMS, human capital management HCM software makes it easier to automate the daily record-keeping processes, providing an efficient framework for HR staff to manage payroll and benefits administration, form succession plans, and document compliance or personnel actions.
Now mostly synonymous with HRMS, human capital management systems typically go beyond these functions by adding integrated talent management features.
Avoid Spending More Than You Have to on Managing Your Workforce
While it can cost a lot to manage a workforce, you can easily cut costs through the use of HCM systems. Top-quality software will enable you to track all of your employees’ activity and time, helping ensure that time theft doesn’t occur at any point.
You’ll also to be able to bill more accurately, while making payroll more manageable.
Companies that utilize human capital management solutions will likely find that their employees are easier to manage. They’ll also be able to reduce their expenses and potentially experience better ROI with great software at the best value.
Businesses can also better maintain compliance using HCM software, with solutions that are tailored to each customer’s needs.
Features of Human Capital Management
Depending on the company and the extent of your solution, you can choose from many different features with human capital management solutions.
This software can include applicant tracking, onboarding, HR management, benefits administration, payroll and tax management, time and attendance management, ACA, COBRA, pay cards, and employment verification services.
With these features included in a complete HCM solution using the latest technology, companies can get the results they want from their human capital management, without any of the complications that can occur with other outdated solutions.