Human capital management (HCM) refers to the system of recruiting, managing and optimising the human resources of an organization. In today’s world, organizations are under great pressure to lower costs and increase productivity, all the while maintaining a high level of service. Human capital management software has now moved from being a simple record system to a system of the comprehensive and agile platform and has thus brought to the fore the easy to use user-interface. Organizations across the globe are currently focusing on creating a digital workplace that facilitates high productivity, provides fluidity and flexibility and uses advanced communication tools.
Human capital management (HCM) solution are capable of streamlining time-consuming administrative tasks by eliminating manual busywork. The global human capital management market is presently experiencing meteoric growth due to the increased adoption of HCM solutions by several organizations.
In the ever-changing technological landscape, HR must identify the right human capital management (HCM) solution.
Finding applicants with the right skillset and experience or any other necessary criteria to fit into a company’s job profile or working culture can be extremely time-consuming and difficult if the HR person has to look through a pile of resumes. One might miss out the best candidates because of the organization’s age-old slow hiring process. This is where the human capital management (HCM) solutions come in. With its applicant tracking system, it can help streamline the recruiting process and by leveraging the data, one can easily create the optimal job profile to attract the right resource.
A human capital management platform with employee self-service also allows staffs to keep track of the hours worked and manage schedules. The introduction of these systems in organisations also helps HR by eliminating the time spent on these routine tasks. The whole system not only increases the productivity of the employees in the long run but also maintain the mutual respect between the employees and the employers.
Human capital planning helps a company to design human capital policies and strategies to increase the efficiency and productivity of the employee and also helps them to achieve the already-defined objectives and goals of the organization. The systems enable a free flow of information between the superiors and the subordinates, which helps maintain a level of transparency between them.
HCM systems make HR and payroll managers much more productive by eliminating the daily hassles of transactions and requests from employees. These systems automate the routine tasks and make information available to people who need it. The HCM platform also helps retain and nurture talent by providing learning and growth opportunities to the employees.
HCM platforms help streamline HR operations, manage employee lifecycle, helps in modelling, budgeting and administration of employee compensation plans, work on optimizing workforce management and spending, and finds application in talent management.
Human capital management technology is disrupting the world of workforce organizations. The advanced technologies are changing not only eliminating job roles but also creating new work opportunities and changing business strategies. With the changing traditional hierarchical structures, the workforce is also transforming into a more agile efficient and streamlined network of teams all the while becoming more diverse and global.