The modern workplace – whether it be at the office or living room – is rife with complexity for HR professionals.
There’s not only recruitment, training, retraining and talent development to think about but also they have to adhere to legal requirements, specific regulations, and compliance requirements.
In order to aid them, technology has the power to provide streamlined pathways for maintaining data and helping to analyze it, with the ultimate goal of meeting business goals.
The most useful type of technology for HR pros is human capital management (HCM) systems.
HCM platforms are software that lets HR and People Managers manage (both strategically and operationally) the whole lifecycle of an organization’s workforce.
The functionality of HCM platforms can range from resource management capabilities, learning and development capabilities, change management, and labor force automation.
Is there a difference between HCM & HRM platforms?
Both human capital management (HCM) programs and human resource management (HRM) programs track an organization’s resources. Yet there are differences between the two.
HRMs tend to focus on the organization and facilitation of day-to-day HR tasks.
HCMs reach beyond this remit and support the strategy behind workforce management – including development planning, change management, employee engagement, and leadership development.
On the operation-strategy spectrum, HCM is positioned on the right-hand side while HRM sits on the left.
The benefits of HCM platforms
Greater engagement. According to a report by Microsoft, 41% of employees are considering quitting their job or changing their profession. With more effective employee engagement, business can attract and retain its workers. This is highly relevant given the fact that 85% of employees admit being not currently engaged in their work.
HCM functionality, such as pulse surveys, recognition schemes, benefit programs, helps to bridge the gap in engagement. While other functionality helps to identify which employees are becoming disengaged, which lets the company quickly react to bridge the gap and demonstrate their value to the company – and ultimately create greater engagement.
Elevated efficiency. HCM software channels insightful data across every aspect of worker efficiency. With such data, organizations can analyze levels of productivity across the whole business.
With an arsenal of accurate data, managers are capable of using it to discover areas that could be improved as well as help to direct future plans that are based on capacity.
Increased learning. Strong learning and professional development programs have become a necessary part of modern employee retention. And this component is key given that fact that a huge 82% of employees would consider quitting their job due to the stunted career progression.
The growth of a company necessitates the growth of each employee. And to manage and track individual training, organizations need a strong HCM platform to ensure that each worker has their own personal progression plan.