PAYDAY Workforce Solutions Blog

How HCM Builds Employee Engagement

On Apr 1, 2015

The crisis of employee disengagement is documented in Gallup’s State of the American Workplace report which shows that almost three quarters of U.S. workers are disengaged at work. This disengagement costs employers hundreds of billions of dollars every year.

These findings make 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. HCM can benefit your business by making it easier for management and employees to access the data they need to control their own information and make quicker and better 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 (ESS) tasks, which organizes staff and releases information and processes to managers and employees to use when they need it, not just when they’re available from HR file cabinets and locked offices.

ESS reduces paperwork and clerical labor through online processes, so what used to require an HR clerk’s attention can now be done by employees with little or no interaction required. When responsibility for the task is shifted to the employee, changing income tax withholdings, enrolling in benefits, and reviewing policies can be done with very little impact on administrative staff, reducing the amount of time it takes to accomplish simple tasks and allowing them to focus on more important things.

Improve Communications

HCM improves communications between employees, HR, and managers. Company announcements, goals and other information can be pushed out to employees in one easy step, ensuring that all employees receive the same message. Manual processes such as time off requests and address changes are transformed from paper-based documents to automated digital processes, easily accessed by all involved.

Give Employees More Control

HCM improves employee engagement by giving employees more control over their own payroll and benefits. They can manage their personal information themselves, change their address on file when they move or change benefits elections in the comfort of their own home. Paycheck stubs and W-2s are available online for employees to print when applying for a loan or during tax preparation. Employees can also access company handbooks, policies, and other documents online anytime.

When employees have the ability to self-service activities that were traditionally transactional, they don’t have to wait for answers or spend time following up with an HR or payroll representative, which results in an improved experience and increased satisfaction with work processes. HCM can really improve all functions – management, HR and employees – extending employee engagement to everyone using it.


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