Difficult and time-consuming employment processes like payroll, recruiting, and workforce development are more easily implemented and managed with human capital management (HCM), making it attractive to more and more employers. HCM is changing traditional disparate human resources functions like benefits administration, personnel data, and reporting for payroll and workforce management into engaging and efficient systems. A Computer Economics survey found that while almost one quarter of organizations invested in HCM in 2014, the numbers show only a slight increase from the previous year.
As International Data Corporation (IDC)’s analyst Lisa Rowan said, HCM can provide the ability to do more with current resources. She continued that HCM allows a business to automate processes covering the full span of an employee’s relationship with their employer as well as a way for Human Resources to manage their data at the corporate level.
“These functions are increasingly being delivered as employee self-service or manager self-service to automate record keeping and updating as well as consolidated reporting,” Rowan said. “…flexible work rules, job mobility, and the strategic importance of people assets have forced organizations to transform their human resources systems into a more real-time, personalized, and operational intelligence business function that goes beyond the traditional view of aggregating personnel data.”
Employers are seeing more availability of HCM resources available on the market today, and at a much more affordable price than in the past. As technology continues to improve, the small- to medium-sized companies are able to gain access to HCM more easily and implement it more efficiently in their organizations.
Despite the trend towards a desire to implement Human Capital Management software, a 2014 survey by Deloitte found a large gap between the urgency of the issues that human capital management leaders face today and their organizations’ readiness to respond. A major takeaway in Deloitte’s study was the need “to innovate, transform, and reengineer human capital practices,” and suggested action items to accomplish this included “Race to cloud: Integrate talent, HR, and business technologies,” and “Balance scale and agility” for the HR function.
Deloitte’s comparing 2015 study showed only minor improvements in these findings, citing only 22 percent of surveyed leaders feel that “HR is adapting to the changing needs of their workforce.” The U.S. proved to have a 26 point gap between what business leaders said they want and their perception of what HR can deliver.
It’s time for businesses to take action towards their goals and it’s clear that HCM is a core piece of that process. While organizations are starving for improvements in technology and more engagement in the employment relationship, executives need to take action on obtaining the tools that will help them manage their workforce with an innovative approach, providing both efficiency for the organization and engagement for the employees.
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
625 The City Drive South, Suite 250
Orange, CA 92868