What Is HCM Software?
HCM stands for human capital management. HCM incorporates every task needed to attract, retain and elevate employees. These tasks include everything from recruiting and onboarding to managing benefits packages. This can be a time-consuming process, but HCM software makes things quicker and easier.
Functions of Human Capital Management Software
Recruiting
Recruiting software helps you find and hire the right people. It can help you find candidates, screen them and schedule interviews. The same software can also manage your recruiters’ workloads by automating repetitive tasks like scheduling interviews or sending reminders to candidates who haven’t responded within a specific timeframe.
Managing a successful employee referral program is essential for human capital management (HCM). A good HCM system will give managers access to tools that make it easy to track employee referrals and reward those who refer new hires. This often means integrating with a company’s applicant tracking system.
Onboarding
Onboarding is a critical part of human capital management, and it’s something that many businesses don’t do well. There are plenty of mistakes companies make when onboarding new employees, but there are also many strategies for attracting and retaining talent at your company.
Onboarding is bringing new employees up to speed on how your organization works to be more productive from Day 1. It involves more than just training — it’s also about helping them understand what’s expected of them in their roles and explaining benefits packages or other perks that come with working for your company.
Benefits management and administration
Administering benefits packages is a crucial component of HR management. It can be expensive, confusing and time-consuming. Still, quality benefits packages are an important recruiting tool that helps you retain top talent. Also, benefits (like paid parental leave) are often legally mandated. This means your HR people have to spend time administering benefits programs. This workload can be reduced with the right HCM software.
Time and labor management
Time and labor management software helps you manage your workforce effectively. With this system, you can track employee hours, calculate overtime, record employee absences and more.
The following are some standard functions that time and labor management software can provide:
- Time clock/punch in/punch out tracking: The software should allow employees to clock in or out at the start and end of their workday using an online interface. In addition to allowing employees to report their hours worked, these tools may also track how long it takes for an individual worker to complete a task so managers can better understand the efficiency levels within their teams.
- Automated scheduling: This allows users to create schedules based on availability data entered by each employee.
- Task monitoring functionality: Identify which tasks employees are working on at any given moment. This helps keep productivity high while reducing unnecessary downtime such as long lunch breaks or excessive coffee breaks.
Payroll administration
You need payroll administration software to manage the process of paying your employees. Payroll is an essential component of human capital management (HCM).
There are several different tasks of payroll systems. These tasks include handling all aspects of employee pay, including taxes, deductions and employer matching funds into retirement plans.
Talent management
Talent management is the process of managing employees’ performance and potential. It involves identifying the skills needed to achieve your organization’s goals, then developing the employees who can meet those needs. Talent management software can help you with all aspects of talent management, including employee development and training, performance management, succession planning and more.
Employee development and training
In the 21st century, there’s been a shift in what it means to be a great employer. Employers are no longer just concerned with hiring and retaining top talent. They also want their employees to develop new skills, take on more responsibility and learn how to excel in their current position.
Employee development and training are an integral part of any modern company’s HR strategy because they can help improve employee retention rates. It also improves overall performance in the office by providing employees with the tools they need to succeed in their roles.
HCM Software Handles Many Important Functions
Human capital management software handles many important functions. For example, it can help you manage employee data such as hiring, payroll and benefits. It’s also used for performance reviews and compensation planning. Some HCM systems also provide tools for recruiting candidates and onboarding new employees.
When choosing an HR system, businesses should look for one that offers all the features their company needs. It’s not a good idea to choose a limited HCM system and handle some functions with third-party programs.
This is expensive and time-consuming. If an HCM package offers more functionality than a business currently needs, it’s important to keep in mind that any firm’s HCM needs will evolve and expand over time.
