Posted By Mike Anderson August 23, 2023
Cloud Human Capital Management (HCM) has emerged in the last few years as an important tool for businesses to more effectively manage their people. Yet despite being an increasingly common component of business, any employers are still misinformed on what the complete benefits of HCM software are.
Benefits of Human Capital Management (HCM)
The primary focus on what cloud HCM software does for a business has always been about the core solutions. HCM solutions such as:
But by fixating solely on what HCM does, companies often miss capturing the full value of what HCM can bring to a business.
Getting full value out of a professional-grade HCM system requires more than software. It requires an HCM software provider that can implement HCM in a way that translates the system’s functionality into something you can use to achieve the outcomes you are looking for.
Here are the 3 HCM benefits to keep top of mind when choosing an HCM software provider for your business.
HCM Boosts Labor Productivity
These routine tasks can suck away a lot of productivity and time that could otherwise be spent on the important aspects of your business.
- Getting everyone enrolled in their benefit plan and updating payroll benefit deductions
- Fielding calls from employees who have lost their pay stub
- Tallying up and allocating labor cost across jobs or departments
- Filling out paperwork to onboard new employees
HCM, however, drives productivity far beyond the people who are in charge of payroll and HR. HCM can drive productivity throughout the entire organization.
For instance, an often overlooked and undervalued benefit of human capital management, time and labor management, can be an incredibly powerful tool.
With time and labor management solutions managers can measure, track, and report not just how much employees are working (or not, in the cases of absence tracking) but also where and when they spend their time (jobs, department,s or activities). It can even capture how much they are producing and at what rates it should be billed.
This is true for whatever type of workforce you might have — hourly, salaried, exempt, non-exempt, professional, blue-collar, on-location, or distributed. The intelligent and thoughtful application of a robust time and labor system to your operations provides invaluable insight into your business while ensuring that your labor costs, often the largest expense item in the budget, are going where it matters most.
Human Capital Management Helps With Compliance Management
It is no secret that employers are faced with an increasingly complex and varied regulatory environment.
Employers of all sizes are forced to deal with a confusing array of rules, including:
- Federal, state, and local payroll tax requirements
- State wage and hour rules
- The federal Fair Labor and Standards Act (FLSA)
- The Family Medical Leave Act (FMLA)
- EEOC and affirmative action laws
- The Affordable Care Act (ACA)
- EEO-1 Reporting and EEO Data Collection
- State and local paid time off rules
- Minimum wage laws
- Fair scheduling laws
- And more
These laws cannot be adequately and consistently managed by any one person, and attempting to do so would be putting oneself openly at risk for non-compliance.
While an HCM system can’t guarantee compliance, one of the big benefits of human capital management is that HCM software can be designed and configured to be an invaluable tool to help you stay in compliance, taking a huge computational burden, and worry, off your back.
Improve Employee Engagement With HCM Software
An engaged workforce is consistently touted as a key element to business success. With their mobile, responsive, easy-to-use access, HCM solutions are a foundational tool for fostering engagement, presenting a modern and technologically-forward business impression to prospective and current employees.
HCM systems provide employees access to their own information, encouraging them to use the system to answer their own questions when they can.
Employees, hopefully, shouldn't need to ask managers common questions such as:
- How much time off do I have?
- Where is my last pay stub?
- How can I swap my shift with someone?
- What are my benefit options?
By providing employees secure access to their own information, on any device the employee chooses, the employer is providing greater transparency and convenience to employees, thereby cultivating greater trust and engagement.
Perhaps one of the simplest yet most important benefits of HCM is that employers can consistently make available:
- Employee handbooks
- Benefit options
- Company-wide announcements
- Personal new hire welcome notices
- Performance evaluations that include employee
- Employee time-off requests
- And more
Our experience is that employees respond very positively and enthusiastically to greater access to their information, supervisors feel more empowered, and organizations as a whole become more cohesive with the “glue” of a robust, easy-to-use HCM system.
Final Thoughts on Human Capital Management Benefits
Cloud Human Capital Management systems have immense capabilities and the power to drive exceptional value.
Organizations that have the patience, the discipline, and the right HCM software partner to help them can deploy HCM smartly and realize its durable benefits of productivity, compliance, and engagement.