A valued Human Resources department used to mean that the paychecks were passed to the employees on time and the perpetually confusing health care questions were answered accurately. Today, however, a dynamic Human Resources department is one that has a more important, active approach to Human Capital Management (HCM).
What is HCM?
Human Capital Management is a sea change in ideology, which is precisely what is needed to have a wide scale effect on an organization. HCM is a set of practices enacted by an HR department by which employees can be assessed not only by what they are but also by what they can be and how HR can assist in getting them to their maximum potential.
HCM takes a traceable path to success and tracks it in steps related to workforce acquisition, workforce management, and workforce optimization. HCM treats every employee as an asset (human capital) and works to build on that capital investment.
How Does an HCM Platform Benefit a Small to Medium-Sized Company?
Employee recruitment becomes more efficient
A human resources department has the ability to completely control the recruitment process. Qualified candidates can be directed via a website or email to custom built applications and forms for completion. If the candidate is hired, duplicate data entry is eliminated as their basic information has already been collected during the recruitment stages and can quickly be transitioned to the onboarding stage. Onboarding paperwork can be filled out electronically, thus making the process quicker and easily accessible.
Improvements in interdepartmental communication
With multiple managers and employees having quick and easy access to an HCM platform, interdepartmental communication drastically improves. Mangers are easily able to check payroll, time card, and various other real time statuses with the click of a few buttons. Management can also quickly deploy company news, updates, and have employees electronically approve their time cards without any paperwork involved.
Processing payroll becomes a more unified procedure
One of the most powerful capabilities of an HCM is the ability to unify and make payroll processing a smoother process. All employees’ time card and punch information is seamlessly accessed by the person performing the payroll process. Furthermore, additional payroll steps such as deductions can become automated, saving numerous hours of manual collection and data entry.
Automated, instantaneous expense tracking
An HCM platform can have the ability to automate the expense tracking for employees. Upon incurring an expense, employees are able to electronically submit expense reimbursement forms for management’s review and approval. Images of required receipts are electronically attached and all expense report submissions can be tracked at every step of the approval process by both employees and managers.
Wider visibility available to management
With extensive reporting available, management gains wider visibility into what’s going on with all employees and in all departments in real-time. HCM platforms have hundreds of reports available tracking virtually every aspect of an employees pay, time, benefits, eligibility, and work history. Even if they don’t offer a report needed, HCM platforms have report writers so management can quickly and easily create the customized report needed. Reports can be emailed directly to a manager’s inbox at any time during the day.
Tracks compliance effectively
HCM systems can have built in rules to automatically track and stay on top of federal and state compliance. Upon an employee reaching a specified amount or threshold for whatever action is being tracked, managers are able to receive real-time notifications and emails alerting them of any compliance issues. Furthermore, some HCM platforms offer suggestions and recommendations which management can take to stay in compliance.
Simplifies updating of benefits
HCM platforms centralize, organize, and track all aspects of employee benefits. Whether it’s calculating and tracking employee PTO or being alerted of when a certain employee will become eligible for benefits, an HCM system will keep you up-to-date in order for managers to stay proactive and on top of all aspects of employee benefits.
Once available to large, multinational companies, Human Capital Management software is now, due to cloud-based solution, affordable for small to medium-sized businesses. When you need to unify the many responsibilities afforded to a strong HR department, an HCM platform is the solution. PAYDAY’s products and solutions help business managers take care of all the details so they don’t have to. Contact us to find out more about how our HCM systems can help you simplify and automate your growing business.