The Human Resources landscape has been changing in recent years with a marked shift to new strategies, software being one of them. In a growing trend among those changes, Human Capital Management systems are slowly but surely replacing other Human Resources or Payroll systems. The key characteristic of a Human Capital Management system is that it considers your employees to be Capital or manageable assets. Now while that may sound impersonal, it actually proves to be beneficial to both you and your employees.
The HCM system entails a top to bottom talent management system which supports the recruitment phase, the onboarding phase and the communication and tracking of clear expectations and performance goals. Data on all of these areas are easily accessible for managers within the HCM system to base key decisions on - both on an individual and broader scale. With data, areas which can benefit from development or innovation for better retention become very apparent. Typical HCM systems provide a module for each area, boosting efficiency and clarity. Further, there are increasingly sophisticated templated and automated record keeping for the day to day - resulting in streamlined processing that are always up to date with regulations.
While the streamlining of processing and documentation is more readily available in other HR systems, HCM is all of this and more thanks to it’s sophisticated talent management services. Basically, while most systems will allow you to have all employee details and history, interactions with HR, payroll etc. readily available, HCM systems will also give you tools to interpret and apply that data for strategic goals. This means higher rate of successful development, better business decisions, better employee retention and performance as well as an easily integrated and sophisticated platform on which to do it. Especially with a marked rise of global and remote employment, it’s easy to see how this online and streamlined alternative is gaining favor.