Technology has helped revolutionize the workplace. The impact has been felt and observed in many areas, such as enabling real-time communication, improved employee efficiency, security management, and cost management. In addition, technology has successfully facilitated human capital management (HCM). This includes easing the workload of human resource managers by centralizing critical workforce functions, in turn eliminating HCM challenges via human capital management software solutions.
Human capital management software has undergone a big leap from performing simple payroll and reporting tasks to offering cloud-based software solutions which offer a fast and innovative way to handle multiple human capital tasks.
High-performing organizations such as Google have elevated their workforce by integrating what it terms as “people analytics” which is a data-driven HR function. This led to high productivity outcomes where each employee produced an average of $1 million in revenue and $200,000 in profit per year. Google has certainly reaped great benefits by capitalizing on data and employee feedback to create a strong team and achieve top productivity.
One of the top goals for human resource managers is to promote the success of the organization by hiring, retaining, and managing the skills and experiences of employees. HCM software offers an all-in-one solution shifting human resource functions from analog to a single and digitized system.
What Is HCM Software?
Human capital management software helps to digitize HCM functions to enhance the management and maintenance of employees. It involves a combination of human resource applications into a single system to enable companies to optimize the talents and skills of their team.
Human capital management software is also known as human resource management system (HRMS) or human resource information system (HRIS). This software supports several HR functions, ranging from talent acquisition to performance management.
Here are the key features HCM software should have:
- Centralized management of employee information
- Talent management
- Payroll and benefits management
- Recruiting and hiring
- Employee training and development
- Tracking of employee time and attendance
- Business data and analytics management
What Are the Benefits of HCM Software?
Companies are now adopting HCM software to elevate workforce experience and productivity. Some of the key benefits such software offers include:
1. Efficient recruiting and onboarding to access and retain top talent: The software allows the company to keep track of employees’ professional training and development. HR managers can keep a log of training objectives, courses, and performance appraisals.
2. Better employee engagement: This is done by using HCM tools to set actionable objectives and automatically administer company policies and employment laws that promote a conducive work environment that enhances employee motivation.
3. Enables better data security: Data is one of the most important elements in human resource decisions. According to a report by the Economist Intelligence Unit, 82% of organizations intended to integrate more big data into HR before the closing of 2018. With cloud-based software, companies can store data securely and access it anywhere, eliminating the need for manual filing of documents.
4. Improved business intelligence: Organizations have to regularly make important decisions to improve their workforce. Having HCM software in place allows the use of HR analytics which helps to capture and analyze relevant data to make informed decisions.
5. Minimizes errors: Automating administrative tasks such as payroll and benefits management ensures that employees are accurately compensated and ensures timely tax preparation.
6. Performance metrics: HCM software is designed with HR metrics to enable businesses to constantly monitor and evaluate factors that impact the company. This includes absenteeism, employee engagement, and turnover rates to devise critical business strategies.
Choosing the Right HCM Software
There’s no denying the huge impact HCM software has had and will continue to have in the modern workplace. HCM software helps companies to make critical decisions with real-time analytics and through a data-integrated single system to enhance their workforce.
Current industry trends indicate that more workplaces are embracing big data, a remote workforce, and changing employee demographics. It’s also expected that HCM software will keep evolving to handle new challenges and situations.
ASAP Payroll helps businesses to optimize their human capital functions and needs through a single software platform. Our HCM software will help streamline your employees’ talents and needs by centralizing current analytics and data-driven functions to improve the productivity of your business. Feel free to contact us or visit our HCM Platform Page to get a clear picture of what we’re offering to help you build a top-performing team.