You may have heard about HCM software, but do you know what it can do for your business?
If you’re like many small-to-medium businesses, your back-office data is stored on an assortment of computers and software – and probably even on paper. However, this can be limiting and lead to disorganization.
That’s why integrated HR technology has become a popular solution for helping businesses save time, money and frustration.
The most basic HR technology systems are usually referred to as HRIS (human resources information systems) or HRMS (human resources management systems). These were the predecessors to the more robust, feature-rich HCM platforms, storing primarily essential data such as employee, benefits and payroll information.
HCM puts all your HR information in one place
HCM, or human capital management, is the most comprehensive type of HR technology. An HCM platform integrates all your HR data in a single system. It provides a central point of access for not only storing employee records and processing payroll, but also managing benefits, time and attendance, performance reviews and much more.
When you and your employees are easily able to access the information you need, when you need it, it can completely transform your organization. You’ll go from drowning in the tactical details of your business to becoming more strategic in your approach to human resources and your business as a whole.
A reputable human capital management system will automate your core HR processes and give your business access to all this information (and more) from one convenient, integrated online location:
- Hiring data like résumés and applicant info
- Onboarding and benefits enrollment information for new employees
- Company documents such as employee handbooks, emergency procedures and announcements
- ACA (Affordable Care Act) compliance measurements for eligibility and stability periods
- Benefits management and open enrollment information
- Employee pay grades and positions held in the company
- Employee records and payroll data
- Schedules and shift assignments
- Time and attendance tracking
- Training information
- Succession plans
- Development plans and disciplinary actions
- Certifications and renewals earned and needed
- Status changes and company employment history
What does having all this valuable information right at your fingertips mean for your business? Here are five ways an HCM platform can make life easier for you and your employees
1. You’ll save time
If you don’t have an HCM system, this may sound familiar: Your employees’ data (such as contact information and hire date) are stored on an Excel spreadsheet. Your time-tracking software is separate from your automated payroll system. Performance reviews are stored with individual managers throughout the company.
When you choose the right HR technology for your business, all that information lives in one place.
An HCM system lets employees input their own time and attendance information, which is then connected to their salary information and ACA reporting requirements. Payroll is generated without retyping data. If someone leaves the company or changes jobs, an integrated system updates the information everywhere, so employee data is always current and accurate throughout the system.
Having timely, integrated data can facilitate the production of year-end forms such as 1094s, 1095s, 1099s and W-2s.
HCM technology also makes for much faster and more accurate onboarding, so it’s less time-consuming to grow your workforce.
2. Time saved equals money saved
Greater efficiency saves you time, which ultimately saves money. Imagine freeing your HR staff from data entry so they can begin helping you build a plan to grow your workforce or explore why a particular area has excessive turnover.
Because cloud-based software allows you to buy only what you need, your company’s price to entry is significantly lower. That’s because you don’t have to invest in proprietary, on-premise software and its requisite updates, servers and other IT infrastructure. With an online system, maintenance and upgrades are handled by your HCM provider, not your IT staff. It’s seamless and doesn’t disrupt business.
Further, HCM software easily scales up and down with your business since you’re typically charged on a per-employee, per-month basis. Be sure you know what you’re looking to improve by implementing new HR technology into your organization.
Human capital management technology eliminates paper hard copies and the physical storage space that paper requires. Eliminating paper storage may free up enough space to add an employee or two. In addition, when you don’t need to transfer information from one system to another, there are fewer chances that costly mistakes will be made.
Since employees manage their own personal information, you may also be able to add employees without adding HR staff for administration. This gives employees a vested interest in updating their own records when they move, get married or have a child and further ensures accurate and timely information
3. You’ll reduce frustration company-wide
With cloud-based systems, not only do you have work-from-anywhere convenience – your employees do, too. This becomes particularly important as you incorporate more remote workers or open offices in new locations.
Human capital management software can give all of your employees access to specific pieces of information in the system. They’re able to enroll themselves in benefits programs, make changes to contact information or withholding, and perform routine administrative tasks without depending on your often-time-starved HR staff.
It also becomes more convenient to hire new employees when your systems are streamlined. A robust recruiting system helps your hiring managers more consistently source, track and evaluate candidates, from job posting through the interview process.
And, by reducing your HR staff’s workload, you can help them avoid burnout and free up their time to handle more important issues, like planning and implementing strategic talent management.
4. Your data will be more secure
Security is perhaps the biggest problem with having your workforce information strung across several paper-based and disconnected on-premise systems. A human capital management system gives the right people role-based access to the employee data they need, but not information they shouldn’t see.
For instance, a manager can see her team’s performance evaluations from multiple years, their salary information, time-off requests and professional certifications. But she can’t see salary details from other departments or payroll. Meanwhile, the CEO can see everyone’s salaries and performance reviews. Personally identifiable information, such as Social Security numbers, is also properly protected.
The best HCM systems will offer an executive dashboard that gives upper management visibility into critical workforce management intelligence. This helps your management team stay on top of workforce trends and make better, more informed decisions.
5. HCM helps keep you compliant
If you’re busy running your business, it’s practically impossible to stay ahead of the many rules and regulations imposed by city, state and federal agencies. A human capital management system, because it’s cloud-based, can seamlessly update processes and procedures that help keep your business compliant and on the right side of employment law. This lets your company’s top management focus on profitability rather than compliance.
As with any type of technology, it’s important to make sure the company providing your HCM platform can offer the service and support you’ll need to get the most from your system. You want an integrated HCM backed by knowledgeable, “live” HR professionals who are readily available to help you.
Learn more about how an HCM platform can help streamline your business’s human resources. Download the free e-book: HR technology: How to choose the best platform for your business.