Human Capital Management solutions have evolved over the years from systems of record to sophisticated tools that can maximize a workforce’s productivity and profitability.
HCM providers once touted…
“a single record for each employee”
“fewer errors and redundancies”
“alleviation of the administrative burden”
While all are very compelling reasons to invest in HCM technology, today’s sophisticated platforms provide these benefits and much more. Here, we examine two ways HCM solutions address what’s top of mind now.
Mitigate Compliance Risk
Maintaining compliance with today’s ever-changing employment laws is a universal concern among employers, big and small. With good reason.
According to the Hiscox Guide to Employee Lawsuits…
U.S. companies had at least a 10.5% chance of having a charge filed against them.
The average cost of a lawsuit is $160,000 and takes almost a year to resolve.
The recent passing of laws in New Jersey related to sick pay, pay equity, and sexual harassment is particularly worrisome for employers from the Garden State. And as HR laws continue to evolve and change over time, the concern grows.
Cloud-based HCM systems store and maintain all employee data in one place, which is essential to maintaining compliance. Having this data accessible 24/7 makes it easier to spot trends, set alerts, and configure workflows to help you identify and flag disparities.
Time tracking tools help employers effectively calculate sick time accrual without relying on manual processes. It can also help satisfy the record-keeping requirements of sick leave laws.
Executive dashboards provide a high-level snapshot of a workforce’s demographic makeup, job titles and compensation packages in real-time. This information is essential in helping maintain adherence to pay equity laws.
Finally, standard and ad-hoc reporting capabilities allow for the running of reports necessary to analyze data and make critical decisions.
Better Engagement and Higher Retention
Employee engagement is critical to an organization’s success. High levels are associated with a higher level of productivity and a lower incidence of turnover.
According to Gallup research…
Employees who are “engaged and thriving” are 59% less likely to look for a job with a different organization in the next 12 months.
Teams with high employee engagement rates are 21% more productive than those with low engagement.
Many HCM tools can enhance the employee experience. We’ll cover just a few, beginning with talent acquisition.
Applicant tracking software (or ATS) impacts engagement in two ways. First it helps source better-suited candidates that fit the company’s needs and culture. Second, it provides ease of execution when it comes to applying for a job, which candidates expect. An ATS makes the process faster, easier, and more streamlined. Employees carry that first impression of the organization throughout their career.
Once hired, onboarding platforms keep the positive momentum going. The ability to complete necessary forms online spares new hires from the dreaded first day paperwork.
Opportunities for employee development are essential for engagement. According to a Robert Half study, “businesses with a strong learning culture experience higher employee engagement and retention rates around 30-50% higher than those that don’t.”Learning Management Systems (LMS) centralize these efforts and provide the necessary training and career advancement employees crave.
Last, but far from least, employee engagement platforms are the solution for organizations who are looking for a comprehensive tool to connect and revive their workforce. Features like social media feed walls, survey functionality, crowdsourcing, goal-setting, and next-level performance reviews ensure employees are collaborating, communicating, and connecting.
What Every Growing Business Needs to Know
The term human capital management (or HCM) is much more than human resources jargon. It is an essential set of practices and processes organizations utilize to manage the employee life cycle.
Learn how you can use it to help leverage your business with our free resource. Get your free copy here.