What is the HCM software (Human Capital Management), and how does it work?
Human Resource workers face a lot of challenges in today’s workplaces. HR professionals must adhere to legal, regulatory, and compliance standards in addition to recruiting, retaining, and growing a competent team. Technology, through the HCM system, has the potential to empower HR professionals by providing a streamlined approach for managing and analysing data, allowing them to achieve their goals and improve HR operations across the board. With HCM software, they can handle HR administration and provide employees with access to their own data and tools, such as a mobile app that allows them to request vacation time.
Why use Human Capital Management (HCM) Software?
HCM software is a type of technology that can assist organisations in managing and caring for their personnel. It’s also known as an HRMS (human resources management system) or an HRIS (human resources information system) (human resources management system).
HR operations including payroll and benefits administration, as well as recruitment and performance management, are frequently supported by HCM software. You can include any functions your organisation requires with an HCM system.
Employee data is recorded and stored in a database via HCM software. Advanced analytics are available in leading systems, allowing organisations to obtain insight into the most effective ways to recruit and retain bright personnel.
What’s the Difference Between Human Capital Management and Human Resource Management Software?
It’s common for people to confuse HCM (Human Capital Management) with HRM (Human Resource Management) programs because they’re both used to track organisational resources. There are, however, minor distinctions. Human Resource Software is commonly used to organise and streamline day-to-day HR tasks.
Human Capital Management Software goes a step further by assisting with the workforce management plan. Organisational development planning, change management, employee engagement, and leadership development are all examples of this.
As a result, we can think of HCM and HRMS software as a continuum. HCM software (which focuses on strategic workforce management) is on the left, whereas HRM software is on the right (which supports the more operational level tasks).
What Are the Advantages of Using HCM Software?
Increasing Employee Satisfaction
According to the Microsoft Work Trend Index Report for 2021, 41% of employees are considering quitting or changing careers, a trend called the “Great Resignation.” Employee engagement is critical for attracting and maintaining top talent, yet Gallup reports that 85% of employees are currently disengaged in the workplace.
Pulse surveys, employee recognition schemes, and benefits packages are examples of HCM systems that can help bridge the engagement gap. The same tools may provide intelligence on whether employees are at risk of becoming disengaged, allowing firms to act swiftly to retain top talent and anticipate future resource needs.
Examining Employee Productivity
HCM software gathers useful information on all aspects of employee productivity. This enables businesses to analyse productivity across the board, as well as drill down into productivity and efficiency at the departmental, role, and even individual levels.
Managers can use this information to evaluate where processes can be improved and guide future workforce plans based on existing usage and capacity if they have a good grasp of efficiency and productivity.
Improving Education and Development
Employee retention and organisational capability cannot be achieved without effective learning and development initiatives. Surprisingly, 82% of employees said they would leave their job owing to a lack of career advancement, highlighting the necessity of providing possibilities for personal development.
Organisations will undoubtedly want software to track individual training and development in order to ensure that each employee has a personal growth plan. The HCM system can also be used to deliver information to employees about training programs and learning opportunities within the firm, in addition to tracking individual growth.
Shiftin and HCM system
Shiftin app has similar features to HCM software, but it is not one. Still, it helps clients with strategic planning, especially with shift scheduling at a team level. Also, you can cross-plan the human resources so as to support all business processes. With shiftin by HTSS you save time, which can be then allocated for the optimization of team performance and better management. Another similarity is that everything is traceable and in one place. The app is dynamic and constantly updated. Furthermore, the timesheet is automatically created, from the attendance module, in perfect correlation with staff schedules and is sent directly to the payroll.
Want to try out HCM software but aren’t sure if it’s suited for your company? Ask for a free demo, from shiftin by HTSS, and access operational excellence!