The crisis of employee disengagement is documented in Gallup’s State of the American Workplace report that shows that almost three quarters of U.S. workers are disengaged at work. This disengagement costs employers hundreds of billions of dollars a year.
That makes engagement a vital factor in business success in the modern workforce and global economy. Former GE CEO Jack Welch’s philosophy is “Employee engagement first.” He believes that business success depends on every company’s employees believing in the corporate mission and knowing how to achieve it.
One way to improve employee engagement is to provide easy access to information employees want and need. That’s where human capital management (HCM) can really improve satisfaction and productivity in your workforce. Read on to see how HCM benefits your business by making it easier for management and employees to access the data they need to manage their own information and make decisions at work.
Transform a Backlog of Employee Management
HCM transforms traditional employee management tasks (that often backlog during peak or problem business periods) into employee self-service tasks. Self-service means the system releases information, data, and processes to managers and employees to use when they need them, not just when they’re available from HR file cabinets and locked offices.
Using HCM transforms a backlog of employee management into employee self-service. It reduces paperwork because it pushes processes online and opens them up to everyone who needs them. It reduces clerical labor because what used to require an HR clerk to do for employees now gets done by employees as they need and want. Examples of tasks include changing income tax withholdings, enrolling for benefits, and reviewing company policies.
Give Employees More Control
HCM improves employee engagement by giving employees more control over their own payroll and benefits data. They can manage their personal information themselves, change their address on file when they move or change benefits elections when allowed and to the plan(s) they want. Paycheck stubs and W-2s are available online for employees to print, and because everything is available online, information can even be accessed and printed while the employee is sitting with their accountant on April 15.
Employees can also enroll in benefits from the comfort of their home while reviewing benefit information with their family, allowing a more well thought out selection process. The benefit elections and plan documents can then be referenced through self-service at any time throughout the year, giving employees the information they need at their fingertips and reducing the number of calls and requests that HR gets.
In addition, that employee manual that was given on their first day and likely tossed into a forgotten drawer can be posted on self-service, allowing quick reference for employees and eliminating the cost of distribution and the possibility of losing it.
HCM improves communications between employees, HR, and managers. It takes manual processes like time off requests and time and labor tracking from paper-based systems to automated electronic processes, easily accessed by all involved. When employees have the ability to self-service activities that were traditionally transactional, they don’t have to wait for answers, follow up with an HR or payroll representative, or remind busy administrators of their question. This provides a better employee experience and improved satisfaction with work processes.
HCM supplies relevant information to all functions, management, HR, and employees, with easy reporting from accessible data, extending employee engagement to everyone. While front-line employees appreciate the access to important information, managers and executives appreciate the tools that give them more time to spend on company strategy and employee development.
PAYDAY’s newest technology, iSolved, easily combines all aspects of HCM and help build employee engagement.