Human capital management software or HCM software refers to applications that help a business manage their workforce. Such software helps the human resource team automate processes like payroll, performance management, recruitment and training of the employees of the organisation.
An HCM software is also called human resource management system or HRMS software. There are a lot of processes and application that the HR team needs to focus on such as:
Administrative Support
- Personnel Administration
- Benefits Administration
- Payroll Administration
- Rules and Procedures Administration
- Employee Self-Service Portal
- Employee Information Management
- Employee Service Center
- Employee Self-Service
Strategic and Tactical Support
- Organization Visualization
- Workforce Planning and Management
- Recruitment and Hiring
- Onboarding
- Compensation Planning
- Competency Management
- Performance Management
- Time and Expense Management
- Workflow
- Education and Training
- Reporting and Analytics
Why Is Human Capital Management Important?
Human Capital Management is important because every employee, who works in an organisation, spends time in the company in order to achieve goals set by the organisation, are one of the most valuable resources that are essential for the success of the company. This is why human capital management is important to retain all the highly skilled employees in the organisation.
It is a responsibility of HR professionals to create methods for hiring the employees, for their orientation, training the employees, training them and keeping them engaged, these methods should prove themselves efficient for the organisation.
With the help of human capital management, the human resource team can increase the total productivity and engagement of the employees working in the organisation. In turn, these motivated and engaged employees will work harder to focus on the success of the organisation.
Human Capital Management
HCM software is the best way to integrate every application in human capital management into a user-friendly platform. This kind of software can be installed on your systems locally or can be accessed through a subscription service.
Some common features that are being offered by HCM softwares:
- Recruiting and applicant tracking
- Onboarding forms
- Employee profiles, performance reviews, and history
- Integration with payroll, tax processing, and benefits administration systems
- Employee self-service
- Events dashboard
- Report writing
- Accessible 24/7 from anywhere
- Secure data encryption
Using HCM, or Human Capital Management is a good way for an organisation to increase the efficiency of the HR team and ease the process of recruitment of potential employees and management and developing the employees as well. Building a strategic approach to these things will help you function better in the HR department.
Important Functions Of Human Capital Management
The main function of Human capital management is to hire employees, orient them, then train them for better development.
Hire: Acquiring talent is one of the most important things that need to be taken place in order to have a functioning organisation.
Orient: The newly hired employees must be onboarded the right way and must be introduced into the company culture quickly.
Train: Human capital management must give enough motivation to the employees so they can improve their knowledge and skills to contribute to the business.
Retain: Employee retention is one of the most important function as, without skilled employees, the goals can’t be met.
What Are the Issues faced by Human Capital Management?
Some of the common human capital management are getting poor performance from the employees, no strategy for the workforce, improper usage of the analytics from the workforce, high cost for the challenges that were never solved.
Issue #1: Poor Performance Management
It’s hard to manage performance if the system doesn’t have any derive, and if the company doesn’t combine both the strategy and tactics into one.
Issue #2: Non-Strategic Workforce Planning
There are times when HCM is focused on wrong things instead of finding ways that the business can use to predict challenges and produce an answer to tackle them.
Issue #3: Weak Usage of Workforce Analytics
HR analytics tools are one of the most important tools an HR team can have but if they aren’t aware of how to properly optimize them then the organisation can’t function properly.
Issue #4: Mismanagement of Organizational Change
When change comes, it is essential to adapt based on that, but if a company can’t change then there is a high chance of mismanagement.