Human Capital Management Software or HCM Software is a system that helps in the efficient administration of the employees of an organization. It provides human resources and related departments with enhanced tools that automate numerous HR functions such as payroll processing, absence management, time-tracking, workforce planning, recruitment, and others.
Human Capital Management (HCM) refers to the set of HR functions undertaken by an organization to enhance its employee management efforts. An effective human capital management strategy provides the company with talented staff who stay with the business for longer and actively participate in the business undertaking as they remain engaged with their organization, enhancing HR service delivery and HR processes.
Various elements of HCM software ensure the correct functioning of all modules of the HCM system. These HR software elements support the human capital management efforts of the organization as they provide the HR professionals with several tools that ensure the smooth operation of the various departments in the company.
The most significant elements of HCM software are:
Core HR refers to the must-have features of human capital management software, which include:
Strategic HR includes various human resources activities such as the development of engagement strategies, goal-setting, job structure creation, performance reviews, attrition prediction, managing employees, time and attendance management, and others.
With active compliance management, HRs can rest easy knowing that their human capital management software is actively monitoring for security lapses and reporting them to the concerned department.
HCM solutions also include modules dedicated to improving engagement, such as employee welfare planning, survey creation and sharing, employer branding, employee self-service, work culture development, and other activities.
Talent management refers to the various strategies and global HR operations related to hiring and retaining human capital, such as:
It deals with creating jobs, designations, and salary structures, and sharing the same for recruiting talented candidates, creating an engaging candidate experience.
Succession management evaluates the existing employees for leadership qualities and helps the HR develop plans for effective succession of leadership positions.
Performance management refers to the steps the HR takes to ensure the employees maintain their performance to attain the organizational objectives. It includes the numerous KRAs and KPIs set for the employee to ensure adequate performance levels.
With training management, the HR department can develop various training programs and undertake them successfully. With this module, they can also schedule training sessions and quizzes and certify the employees.
Workforce Management refers to the administration of the workforce using the software, including:
It involves analysis, budgeting, administration, calculation, processing, and disbursal of employee compensation for their work. It is a demanding task, requiring dedicated software for efficient processing.
Recognizing and rewarding your employees go a long way in making them feel that they are part of a family. You can automate performance tracking with workforce rewards and easily reward the best performers.
Staff benefits include the additional benefits employees enjoy on top of their compensation. It includes various benefits administration such as creches, unlimited snacks, and others.
Deploying human capital management software provides multiple benefits, such as:
Human capital management software or HCM software provides the HR team with relevant data through predictive analytics that can help them make better decisions for the company.
Automation in workflows helps reduce errors and streamlines various HR tasks, making it cost-effective and providing significant savings in time and effort.
human capital management software adapts to the company’s growth and can be scaled as and when required to ensure compatibility with the business data.
Since HCM software, especially those deployed on the cloud, stays updated with the latest rules, it automates regulatory compliance, further simplifying HR processes.
HCM Software provides additional security to the database, ensuring the safety of employee and business data. Additionally, it offers different user access for different users.
With interactive reporting, HRs can gather the exact data for any specific period and interpret meaningful inferences. It proves helpful in making data-backed decisions.
HCM software can be integrated with other systems to enhance its functionalities. It helps the HR team further improve their business processes.
The main objective of human capital management software is to provide the company with strategic business growth opportunities by empowering employees and connecting people with daily operations and workflows. HCM software supports workforce optimization and related hr efforts.
There are several advantages to choosing a cloud-based human capital management software, such as: