While it’s always been important to recognise your employees as the individuals they are, you can’t forget that you have a business to run.
As employee wellbeing initiatives surge, professional leaders are starting to view their teams differently – going out of their way to make them feel appreciated and rewarded.
However, at the end of the day, all organizations still have to accept one important fact… staff members are a company resource and need to be managed accordingly.
Even though your team can likely make informed decisions by themselves (and prefer to do their job without interference), people are unpredictable.
This makes running a successful business a finicky and tricky process, where you have to find the balance between being supportive and being overbearing.
That’s where Human Capital Management comes in.
The Definition of Human Capital Management
Human Capital Management can be defined as “the approach you take to attract and onboard talent, manage your team, and encourage individuals to work at their best”.
In essence, it coordinates all the crucial elements of HR – from the very start of someone’s employment right through to the end.
Why? To grant businesses an incredible and powerful competitive advantage in their market. Over the years, HCM has become a comprehensive, detailed, and useful talent management tool.
It largely mitigates the risks associated with having staff, and “takes over” the majority of administrative processes that would have once taken hours, such as:
- compensation planning
- expense management
- time tracking
- employee training
What is Human Capital Management?
Human Capital Management is a digital platform that automates the majority of administration to streamline business processes, often reducing the workload required to complete essential HR duties like payroll or recruitment.
HCM also has a hand in tracking:
- employee wellbeing
- team productivity
- organizational performance
With the intention of completely unlocking the potential of your company’s assets so that you can make the most of every employee.
What is the Business Value of Human Capital Management (HCM)?
Every day, unexpected circumstances can arise that cause issues and frustration across your organization.
- Sick days derail deadlines.
- Burnout damage day-to-day productivity.
- Distractions spiral out of hand.
One person’s absence for a day can affect a whole team for a week, so you need an easy solution that will quickly identify available workers and even schedule replacements. Or, to address long-term issues, begin searching for available talent.
Ultimately, this allows you to keep performing at a certain level, delivering high-quality products or services – on time – to your customers.
What’s more? Recently, Human Capital Management has proven to be particularly useful in organizing and motivating a digital workforce.
The 4 Benefits of Human Capital Management Software
However, don’t be mistaken. Human Capital Management isn’t only useful for reducing admin. It actually offers a surprising amount of hidden benefits to your business. Using it could make all the difference to your future.
1. Agile Responsiveness to Change
There’s no way around it. Crisis management is often a complex task. But, when you don’t have the right employees in the right place at the right time, it becomes even harder.
Any organization that’s able to correctly schedule staff members will be better positioned to make intelligent decisions during times of uncertainty and adapt to market changes.
2. Attracting and Retaining Talent
When you have a deep and knowledgeable understanding of the ins and outs of your workforce, you’ll easily be able to identify talent gaps.
Then, you can start recruiting to reduce the consequences of overburdened employees and better support your team.
3. Critical Decision Making
We’ve all made mistakes.
No one wants to repeat them. Human Capital Management programs often collect and report on a variety of employee data that could be useful for you to make decisions about your organization. For example, if you are going through a period of time where turnover is unusually high, this is an issue you can start to address.
“HCM systems help businesses integrate data into a single employee record, support mobility, and help increase efficiencies for the entire workforce.” – Paychex
What is Human Capital Management (HCM)? – FAQs
When such a massive part of your business is hugely reliant on the availability and ongoing productivity of your workforce, Human Capital Management becomes essential to your survivability.
Without it, payrolls might be delivered late (upset staff members and increasing turnover) or you might struggle to identify the best employee for a new position that has recently opened up at your work.
If you still aren’t sure and want some time to ponder, perhaps these useful FAQs can point you in the right direction.
- Why is Human Capital Management important?
Just like the technology and software you own, staff are an asset to your company. When things go astray, it can lead to long-lasting consequences that hurt your profitability and impact your bottom line. Human Capital Management allows you to deliver quality employee experiences.
- What is the difference between HR and HCM?
Human Capital Management typically oversees a wider range of functions than Human Resource Software, making it more suitable for large corporations with multiple considerations to make and regulations to meet. While similar at face value, the benefits that each one offers differ greatly.
- What are the types of Human Capital Management?
The employees within your organization can be split into three types of resources: knowledge capital, social capital, and emotional capital. This is measured by the unique value an employee offers their team and can typically be used to further your business goals.
- How should I implement Human Capital Management?
As with all elements of organizational change, you should slowly introduce your employees to the idea of learning a new system. Lead with the benefits and then give your team time to process the information. Once they are on board with the idea, provide in-depth training, let them play around with the software, and be sure to answer questions.
Train Employees on HCM through Userlane’s Digital Adoption Platforms
Did you know that it takes an average employee more than 6 months to pick up a new skill?
It’s true. For a busy team, this statistic can increase tenfold.
After all, the more work your team already has to focus on, the less likely they’ll be able to dedicate their workday to learning how to use Human Capital Management software… even if it’s really important to you.
That’s why, in workplaces undergoing intense digital transformation, you need to facilitate an automated onboarding system where they can learn on the job. This way, employees can continue to complete their expected duties without experiencing delays.
Digital Adoption Platforms are ideal for companies needing regular software training (due to mass recruitment efforts) in short periods. These overlay an application a user is trying to learn, providing real-time guidance and support.
Want to learn more? Contact us for a demonstration today.