11 Reasons to Work with Human Capital Management Software

With so many companies dealing with an ever growing list of HR processes to manage their workforce, the need to implement human capital management software has never been greater.

To stay competitive, it is important that employees have the time to focus on value-added work rather than repetitive or time-consuming management. Human Capital Management (HCM) software can help your overworked HR team and line managers free up time for such tasks.

Here are the key features you can expect from HCM software:

Workforce planning

Human resources management software is a great way to manage and plan your company's workforce to meet the needs of the entire organization. For example, the system enables senior managers to model workforce requirements based on changes in business strategy.

Performance and competence management

Evaluating employee performance, giving feedback, assessing and setting future goals can be time-consuming tasks for both supervisors and their teams, but HCM software automates the process and allows them to complete and store feedback, assessments and performance reviews in the HCM module of the performance management system.

Compensation planning and strategy

One of the great advantages of using HCM software to track employee salary and performance information is that the data can be easily manipulated and analyzed. This means that you can view your compensation expenditures in different ways and use this data to formulate a future compensation strategy.

Time and cost management

With HCM software, your employees can quickly and easily submit timesheets and expense reports without the need for manual forms and approval requests.

Learning and development

The best HCM software supports an organization's learning and development strategy by providing information on the range of courses or training/learning opportunities on offer, enabling employees to either choose their own training or allowing managers to provide appropriate learning interventions to their team members based on their performance development plan.

Recruitment

This is one of the most widely used elements of human capital management software and potentially one of the most value-added areas of an organization. Recruitment of new employees can be facilitated by automatically generated job descriptions and the seamless posting and pre-selection of candidates for interviews.

Induction

With the Employee Onboarding module, users can quickly and efficiently perform all processes related to new employees in the organization, such as creating contracts and letters based on templates, requesting reference information and creating new employee records.

Contingent workforce management

Many HCM systems have an option for managing contingent staffing, which allows managers to capture details of their non-core staff, such as freelancers or consultants. It is critical to collect cost and usage data on these individuals, because although they are not employees, they make up a significant portion of a company's total workforce.

Visualization of the organization

HCM software offers you new possibilities to design and follow the visualization and strategy of your company. This could include modeling various scenarios, such as reducing or increasing the number of employees or investing in more training to qualify employees for the introduction of a new product.

Reporting and analysis (workforce analyses)

One of the most important benefits that HCM can offer companies is the ability to report and analyze some of the critical business metrics related to the company's employee side. At the touch of a button, users can run pre-defined, custom reports to measure metrics such as employee turnover, recruitment expenses and departmental employee performance.

Workflow

Workflows are the step-by-step processes that relate to various tasks in a company. HCM software enables you to set up personalized HR workflows for various HR processes. In this way, many of the functions can be executed either automatically, as part of a sequence, or with minimal user interaction.

Difference between HCM software and HRM software

Although many people use the terms HCM and HRMS synonymously, there is a subtle difference between the two. Human Resource Management software focuses on the basic process tasks related to the people or human resources of your organization. HCM software also addresses these, but often takes the concept to the next level by helping your organization achieve its strategic goals through HR management, such as organizational development, change management, employee engagement and leadership development.

Find the right HCM software for your company

The features and functions of human capital management software inevitably differ from vendor to vendor, as does the quality or focus on specific components. Therefore, it is worth carefully evaluating the options in the marketplace to help you choose the right HR software for your organization and ensure that it is suitable for both current and future business needs.

If you are looking for an easy-to-use, cost-effective Human Resource Management System that does it all, try IceHrm. Sign up for a free demo.