According to recent data published by the ADP Research Institute, 84 percent of employees feel lackluster, as if they are just “coming to work”. For some, this laid-back attitude may be enough. Most of us however, have dreams and ambitions. For us go-getters, we have goals and plans in place to further the success of our companies. You may wonder why this matters. Why measure engagement? Why boost morale? Why should we care about employee satisfaction? In order to answer these questions, we must first answer: What is human capital management, really?
For those left wondering why these things are important, this article is for you. Let’s discuss what human capital management (HCM) is and why you need to secure the relationship between the employer and its workforce.
What is Human Capital Management (HCM)?
Human capital, aka your employees, are the lifeblood of your organization. Their skills, knowledge, effort and energy are the sole factor fueling your success. They are the most valuable asset companies can boast. Without them, products can’t be built, marketed, sold, implemented and/or supported.
HCM describes how an organization handles its workforce. The top-of-mind question always being, how can we help each person succeed?
Employees who are supported with direction, tools, culture and more–at an individual level–will be more productive. When your workforce is happy, the contributions to your business will yield positive results.
Key components and functions of human capital management
A widely used umbrella term, HCM involves all actions and strategic decisions used by an organization to monitor performance, encourage success and influence productivity.
The human capital management umbrella encompasses:
- Talent acquisition
- Performance management
- Data reporting
Why human capital management is important?
You may be wondering, what are the benefits of human capital management?
There is actually a very simple reason why HCM is so vital to the success of an organization. Employees work to make an organization’s goals happen every day. Staying connected and monitoring their performance is the best way to see what is and what is not working. In doing this, employers can make sure their team has the tools and resources they need to succeed.
A company’s HCM process should follow each employee’s unique journey. The easiest way to help facilitate a team goal is to check in regularly with each individual employee. If your technology is not helping to accomplish that, it may be time to find a new solution.
With talent acquisition, internal or external recruiting is the most important step of HCM. Once you have attracted a talented candidate and they have committed to a role, the real work begins. Remember, it’s imperative to make sure that all new hires have a smooth onboarding experience. You need to set them up with their tools and clearly iterate the expectations of their new role.
By not clearly communicating job expectations and providing adequate tools and training, you’ll be at risk to have high new-employee turnover rates. It’s important that you keep satisfaction and motivation levels high.
An easy way to tell if your employees are content and motivated is to monitor their performance, so you can measure and report success. Data collected during the human capital management process is vital in knowing how to move forward and to create new strategies. Your technology platform should make both collecting and reporting this data easy.
Cloud-based HCM solutions
If the technology you are using is not supporting your human capital management process, it’s time for an upgrade. HCM technology solutions can benefit small businesses to large by providing them with the tools to secure, manage and transfer high-compliance HR data between internal and external systems. Top-of-the-line vendors feature built-in integrations to insurance carriers, ERP systems, payroll providers and more. Additionally, these vendors will sell their product to you at a modular approach, letting you choose how to scale when your situation changes.
Many companies have chosen to move to cloud-based HCM software. By taking essential HR tasks and automating them, cloud-based technology allows both HR administrators and employees to spend their time on high priority tasks and be more productive in their roles.
An HCM platform can significantly improve how you connect with and help everyone in your organization.
Many businesses already use an Enterprise Relationship Planning (ERP) system, without realizing they are missing out on key HR-focused features that only an HCM platform have to offer. These tools can supplement areas that an ERP system traditionally lacks, such as Core HR, Benefits Management, ACA Compliance, Onboarding, Performance Management, Learning Management, Succession Planning and more.
The Full InfinityHR Platform
The InfinityHR cloud-based suite can integrate with many different ERP platforms. This means you can support your technology with essential and strategic HR features that your current business is missing today.
The InfinityHR platform offers different HR-focused features which benefit everyone involved. The platform has multiple capabilities and integrations that help businesses conduct operations more smoothly. It’s built in integration with over 300 partners to top-of-class insurance carriers, ERP systems, payroll processors, business intelligence tools and more, allows you to scale the technology as your requirements change.
HR administrators have reported that with the use of InfinityHR technology, they are able to manage their time better. Fewer steps are needed when creating rules for payroll, time management, eligibility requirements, data sharing, reporting and more. The platform automates many important HR tasks and processes that most would consider redundant. This helps you to cut unnecessary costs and saves time to focus more on business-critical responsibilities.
InfinityHR clients have found that since adopting the platform, they find that accessing their own data is much simpler to do. With Employee Self-Service tools implemented, your employees can access their benefits statements, PTO, important documents, workflows, surveys, and more. Anytime, from any device. Tools that allow your workforce to obtain the information they need easily allows for your HR department to focus on more strategic projects, rather than act just as file hunters.
The full InfinityHR platform offers the following capabilities, all configurable to your needs:
- Core HR
- Applicant Tracking System
- ACA Compliance
- Payroll processing
- Time and Attendance
- Performance Management
- Learning Management
- Benefits Management
- Succession Planning
To learn more about the InfinityHR modules or to discuss a custom solution for your business, please contact us to schedule time with one of our team members.