A Human Capital Management Guide for the Modern HR Leader
Human capital management is a tedious task, yet it is one of the most important parts of any business. Today, however, there are many HR software and other human capital management solutions that have made people’s lives easier.
Human capital management is the complete overview of all things HR in a company, such as a full HR strategy and effective HR software. This includes global and strategic human capital management such as HR analytics, people management, salary planning, and applicant tracking.
It also includes newer concepts like onboarding and performance management.
Usually, human capital management is done for large companies because its implications take into account a global workforce. It relies on human experience to devise and execute strategies that will improve employee productivity. Afterward, the core HR data is collected and analyzed and sent to management so that they can make informed decisions.
Recent advances in technology have introduced cloud-based software, instant internet access, social sharing, and mobile accessibility among other things. All of this has made HR work processes easier, smoother, and much faster.
That is why modern human capital management is primarily focused on three elements, simplicity, agility, and most importantly employee engagement.
Human Capital Management and Simplicity
Nowadays, unified all-encompassing human capital management software tends to provide the solution to simplicity. All essential HR practices and applications can be found in the same place. This includes benefits administration, payroll processing, HR administration, HR analytics, applicant tracking, time tracking, attendance tracking, performance management, and recruitment among other things.
Traditionally, HR people had to manually enter data on spreadsheets and collect thousands of pieces of paper. Then the early human capital management software digitized everything but HR staff still had to enter data manually every single time. This process was often subject to human errors, wasted time, and was redundant.
With current human capital management software, however, you have a combined record of all employees and all of their data at your fingertips. The database is updated in real-time through the Internet-of-Things (IoT).
Since modern software is completely cloud-based, there are no server lags or updates. You can access all the data in an instant. Furthermore, there are no costs for maintenance.
You also have tons of reporting and analytics tools that help with things like HR analytics, people analytics, and workforce analytics. Leveraging these tools and features help the management make informed decisions based on actual real-time data.
Simplicity means that you can know all overtime costs or the time and resources it would take to hire a new employee in a handful of actions.
Human Capital Management and Agility
Agility is a company’s ability to enact change at a fast pace without losing any time in the process. Every couple of months we hear news about some new compliance or legislative change. Some come into action while others don’t. But the ones that do, although they benefit employers and companies, you still need to be able to adjust according to it quickly.
There is a constant influx of change and flexibility, and agility is the key to always being at the forefront. While modern human capital management software is built with a wide range of compliance safeguards, they’re still not complete.
Because the software is cloud-based, this isn’t much of an issue. Software companies release an update with the new compliance standards and safeguards, so your company is up to date.
That is why both the software companies and the companies using that software need to be agile. The software companies need to be quick about making the appropriate changes and rolling out the update. The other companies need to make sure they receive that update, understand it, and comply with it.
If you don’t receive an update, contact your software provider immediately.
This agility is how companies like Credit Karma keep their systems and information updated.
Human Capital Management and Employee Engagement
With employees favoring job satisfaction over everything else, it has become imperative to create a positive employee experience. Employees who are satisfied and happy are productive and efficient as well.
The best part of human capital management software is that they’re not limited to specific groups of people. You can leverage this technology to provide every employee with a way of looking into the human capital management software.
A lot of HR processes can be automated or made to be self-sufficient. This saves the company time and resources because they don’t have to hire additional HR staff for it. Meanwhile, employees feel better, having access to all their information, and the ability to update it themselves whenever they need to.
Final Thoughts
Human capital management solutions tend to promote better communication between employers and employees. They encourage employees to become more proactive in the company, which tends to make the employees feel trusted and valued.
Modern human capital management software tends to provide an all-in-one solution to all HR practices. Regardless of your knowledge of HR, you can access the software, and implement it effectively into your company.
