Smart businesses know that their employees are valuable. Really valuable. That’s why they invest in human capital management software (HCM software): if you have something valuable, it is important to take care of it.
HCMS helps to streamline and automate tedious HR tasks which cost your business time and money. Employees appreciate the increased transparency and everyone benefits from the increased efficiency. HCM software also reduces human error and helps businesses to stay compliant with laws and regulations. Human capital is probably your company’s most important asset. Are you managing it well?
- What is HCM software?
- How to find the best HCM software
- Benefits of HCM software
- Top 10 HCMS features
- HCMS final thoughts
What is HCM software?
Before we get into the software, let’s start with the question: What is human capital? In short, it is the value and potential of employees. It is their knowledge, creativity, work habits, and capacity for productivity. It may be hard to measure but many business owners agree it is their most important asset.
Human capital management involves all the processes businesses use to recruit, support, and oversee employees. This includes every part of the employee’s life cycle from training and onboarding, to payroll and benefits administration, through the exit interview. Managing all these processes is important… however it is also a lot of work.
By automating processes and centralizing information, human capital management software provides a single solution to a multifaceted problem. HCM software streamlines absence tracking, shift management, payroll, and more. That is to say, it makes everyone’s lives a little easier.
You may have heard other acronyms being thrown around, like HRIS or HRMS. What is the Difference Between HRIS vs. HCM? A human resource information system (HRIS) or a human resources management system (HRMS) are all more or less interchangeable with a human capital management system (HCMS). So you should focus on the features instead of the name.
Finding the best HCM software
Looking to spruce up your human capital management in 2020? In order to find the best human capital management software, you’ll need to do some research. Find software that has solutions for your business’s pain points. For example, think of where your team expends the most energy. Managing payroll? Organizing vacations? Good software will have integrations with other systems that you use, like GCal, Slack, or LinkedIn. We’ll go over some of the top features to look out for below.
HCM software benefits
Proactive human capital planning can help your company to save money, keep employees happy, and meet goals.
HCM software saves time and money
Your HR team works hard. It’s not easy recruiting and tracking applicants, managing payroll, vacations, and benefits as well as answering everybody’s questions. Automating these processes will free up your HR team to take on other, more strategic planning.
HCM software increases satisfaction levels
HCM software will also make things easier for employees. Rather than spending time haggling over vacations or following up on unanswered emails, employees will be able to automate and track their time-off requests. They will also be able to check up on their payroll and access important documents at any time. Happy employees are productive employees.
A good HCMS improves recruitment & retention
HCM Software will speed up your recruitment process. With applicant tracking, onboarding, and training centralized on one platform, applicants can go from “potential hire” to “newest team member” faster than you thought possible. Moreover, employees will be more likely to stick around. Reduced turnover means reduced hiring costs.
Top 10 HCM software features
Here are the ten most important features you’ll find in great HCM software such as Factorial’s. This suite of features will help your company to take advantage of human capital and reach your goals.
1. HCMS with an ATS
Streamline the hiring process with an applicant tracking system that will track potential hires through every step of recruitment. An ATS is a form of talent acquisition platform that helps to keep information centralized while hiring new candidates. With Factorial’s employee database, employers will be able to find the information they need about interested applicants and long-time workers.
Once you’ve found the perfect fit for the job, you want to get your new employee up to speed as quickly as possible. With onboarding workflows, you can make sure that no critical document goes unseen. (With Factorial’s safe and secure electronic signature functionality, you can also make sure no critical document goes unsigned.)
3. Time off management
Employees need time off to rest and rejuvenate but employers don’t want to get bogged down fielding time off requests and balancing the schedule. With an attendance management system, employees will be able to send automated requests that managers can approve later. Managers can even create different time-off policies which will be stored in the system.
4. Time tracking
Reduce absenteeism with a smart employee clock-in system. Employees can clock in and out from an app either at the office entrance or from afar. Employers can review timesheets regularly. Easy oversight will make sure that neither employees nor employers are caught off-guard by overtime payments.
5. Performance management
Employees value feedback! Factorial allows managers to run custom HR data reports on the performance of individual employees and team members. They can also utilize fully customizable performance review forms for manager reviews or self-assessment. No more awkward annual interviews. Instead, HCMS makes performance management simple.
6. Document management
Make important information accessible to anyone who needs it. An EDMS (electronic document management system) or a “document management system” keeps information centralized so nothing ever gets lost. Managers can create folders for any critical employee files such as payslips or contracts. They can also efficiently share training material or a digital employee handbook.
Payroll certainly doesn’t have to be complicated. Automate supplemental payments, leave, and contract updates so that they are reflected in payroll. Create custom reports about changes in payroll to get to know your company even better. Above all, employees and managers will be able to review all relevant information at any time in the payroll summary.
8. Shift Management
Retail and hospitality businesses will be particularly excited about this feature. Organize employee work schedules and balance shifts to make sure the floor is always covered. Managers can plan recurring shifts and receive notifications when shifts need to be modified or changed. In short, you’ll never be understaffed again!
9. Employee portal
The best human capital management software will have an employee portal from which employees can access all their relevant information. Increased transparency is directly associated with increased employee satisfaction. Workers will be able to see their hours, payroll, and vacation requests all in one place.
10. Expense management
Employees can upload their expenses directly to Factorial for their supervisor’s approval. With digitalized receipts and invoices, nothing will be accidentally lost or misplaced. Additionally, Employers will have a comprehensive expense report and record of all expenses to calculate the costs of different projects. With custom classification categories, it will be easy to see how money is being used.
Final thoughts on HCM software
In conclusion, human capital management software makes workforce management easy. Automation will lead to fewer errors, more transparency, and less time spent on rote administration. HR staff liberated from tedious processes will, therefore, have more time for proactive and strategic thinking. What will your business do with the saved manhours?
Written by Valerie Slaughter