Essential Tools for Human Capital Management
The transformation of the human resources to human capital management is (or should be) more than a name change on the department’s mission statement. Human capital management, or HCM, should be an integrated and in some cases automated process that not only keep track of employees, but engages them, across all geographic locations, communications channels and even devices.
In a recent article for Business News Daily, managing editor Nicole Fallon Taylor highlighted four of the most essential tools that companies building a human capital management department should have in place. Since the hiring process begins with recruiting, this is one of the tools no company can afford to be without. Manual methods of recruiting are often inconsistent and require too many manual tasks, making it impractical to operate effectively without a more automated solution, particularly for an organization that recruits a lot (think: call center).
“Recruiting software helps you streamline the hiring process,” wrote Taylor. “You can post job ads, sort and accept applications, manage candidates and more, saving you the hassle of manually tracking everything yourself.”
Payroll, another administrative task-heavy process, can save a company loads of time and money with better automation.
“Any business with employees knows that payroll processing is an arduous task,” wrote Taylor. “Make it easy on yourself (or your bookkeeper) by investing in an online payroll service. This type of solution can help you automatically calculate and keep track of paychecks, deductions, paid time off and other payroll functions. Some even allow you to file and pay payroll taxes and report new hires to the IRS.”
Additionally, benefits management, which is a complex process that always seems to be changing, can benefit from better automation. This is a process for which employees will also appreciate better automation, particularly if they can engage in a certain amount of self-service with the tool.
“While some payroll services allow you to administer certain benefits like vacation time, a more robust solution can help you manage all employee benefits including PTO, retirement plans, health insurance, workers' compensation and other perks,” wrote Taylor.
With recruiting, payroll and benefits management more automated (and hopefully…integrated!) this can leave HR professionals free to perform the more complex tasks that require their attention, such as employee engagement. Even this task, however, can benefit from a certain amount of automation, or at least software that allows you to collect more actionable feedback from employees and managers. Which tool you choose will depend on your company culture and your engagement goals (Taylor recommends a number of different tools).
HR, or HCM, is one of the most labor-intensive processes in the company. By automating and streamlining at least part of it, organizations can aggregate the labor-intensive and rote parts of it, leaving professionals to focus their attention on engaging and retaining employees.
Edited by Stefania Viscusi