What is HCM?
Human Capital Management (HCM) refers to the fusion of HR strategy with HR technology to successfully manage employees. Through boosting retention, engagement, and productivity with effective management and tech solutions, HR leaders can increase the potential of employees and maximize their potential. HCM encompasses three primary functions of the employee lifecycle:
- Talent acquisition
- Talent management
- Talent optimization
HCM systems have evolved extensively since implemented in the 1960s, and are currently transforming at an unprecedentedly swift rate. Today, HCM systems provide a unified, agile, and engaging platform for employees from the junior level to C-suite, to track personal career paths, and connect and collaborate with others.
Why should HR leaders care about HCM?
An HCM system is a fundamental component of building and maintaining an engaged workforce within a large company. An effective HCM system can:
- Reduce company costs with automated services
- Increase retention through development opportunities
- Increase engagement through virtual collaboration
- Increase productivity by reducing the recruitment period
- Offer cutting edge compensation to attract and motivate employees
As remote work becomes more prevalent, a user-friendly HCM tech system plays a pivotal role– giving each employee context for their position within the company, as well as encouraging employees to bond and build a lively, online community.
What can HR leaders do to successfully integrate an HCM system?
As the facilitators of HCM systems, HR leaders are responsible for researching, choosing, strategizing, adjusting, monitoring, and evaluating the HCM system. Here are some fundamental preparations HR leaders can integrate to stay on track during the HCM implementation process:
- Identify objectives. Defining company goals and needs enables HR leaders to navigate their HR ship in the right direction. HR leaders should address crucial questions regarding which practices and components of the HR processes should remain the same, and which need adjustment.
- Pinpoint weak areas for improvement. HR leaders can enlist the aid of employees and HR managers to create a comprehensive list of issues that they have experienced first hand. Perhaps the onboarding process doesn’t integrate well, or performance reviews don’t encourage enough employee feedback. Determining weak points helps HR leaders decide on a strategy, and an HCM technology to provide solutions.
- Establish a team. HR leaders should create a team of executives, division leaders, and tech talent, to assist with the integration of the HCM system.
- Build a game plan. Drafting a strategic plan can help HR leaders forge a path towards actualizing their vision; this involves a thoughtful assessment of each problem and deliberate planning.
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How can a well-implemented HCM system improve company culture?
In today’s fluctuating work landscape, large companies rely on agile HCM systems to satisfy employees’ growing work needs. A combination of HR strategies and advanced technology enriches the employee experience. Reminiscent of popular social media platforms, HCM tech can provide attractive and meaningful venues for employees to contextualize their roles within the company and form strong interpersonal relationships. This dynamic and engaging system in turn promotes a company culture comprised of devoted and supportive individuals.