Integrated Human Capital Management (HCM) technology significantly impacts business operations by streamlining HR, payroll, and timekeeping processes to save time and money and improve your return on investment in business systems. A Nucleus Research study of various sized companies in a variety of industries showed that implementing HCM returns an average of more than $9 for each $1 spent, costs up to 79 percent less than on-site solutions, and saves almost 90 percent in ongoing systems maintenance.
The Bersin 2009 Talent Management Factbook states that “revenue per employee is 26 percent higher in companies with an Integrated Talent Management strategy.” It’s easier to improve employee productivity and engagement as well as payroll and HR processes with the efficiencies created with integrated HCM.
Cloud-based HCM provides the efficiencies employers need to successfully manage their workforces in today’s business and employment environment. Cloud-based solutions are significantly more cost-effective than buying and maintaining IT equipment while allowing employers to access their system and information from any location and device. Cloud technology provides the latest version of software and hardware upgrades with no downtime through consistent systems upgrades.
A single system delivered with cloud services reduces the possibility of fraud and tampering. Superior firewalls, encrypted transmissions, and equipment located off-site all mean much-improved data security. It’s much easier to stay in compliance with government regulations and protect important employee information when payroll and HR are integrated with HCM.
HCM improves employee engagement because employees from any location can access their personal data, benefits information, payroll, and time and labor information anytime they need or want it. Integrated HCM provides employee self-service for things like history of pay stubs and W-2’s, benefits information and enrollments, time off requests and accrual balances, and address and tax withholding changes.
Improved HR Processes
HCM allows automated and consolidated HR tasks and frees HR staff to work on more important issues than manual paperwork. It provides better tools for applicant tracking, recruiting, background checks and onboarding to make recruiting a more productive and successful hire process. Employers can also achieve better policy compliance with consistent HR policy enforcement 24/7 from anywhere with internet access, to keep the workforce on track and bump up performance. HCM enables employers to process HR tasks and responsibilities without the overhead for additional equipment and staff.
Integrating payroll and human resources systems with HCM provides one employee system of record and makes reporting much faster and easier. When employers need headcount, payroll costs, performance evaluations, or other information about employees and employee issues, they can easily run reports from a centralized system rather than logging into different systems for payroll, HRIS, and timekeeping.