A human capital management (HCM) system is crucial for supporting HR teams, streamlining day-to-day processes, and managing employee data. But before you invest in new technology, you need to ensure that you’re choosing the right HR software. Otherwise, you may implement HR processes that hinder – rather than help – your team.
How do you select an HCM system from the vast number of options out there, though? To help you narrow down your search, here are five features that every CFO should look for in HCM systems.
What is an HCM system?
Think of an HCM system as the hub, or the nucleus, of your HR department. It’s a service portal connecting various sources of employee data, from attendance to payrolls.
By unifying these workflows, your team can manage employee records more effectively and with greater accuracy. What’s more, you can use the data to improve the employee experience, allocate budgets, and support company growth.
Some HCM system capabilities include:
- Applicant tracking
- Employee lifecycle management
- Employee onboarding
- Payroll processing
- Performance management
- Talent management
- Benefits administration
You should be able to customize your system’s features to match your specific needs.
Benefits of HCM software services and systems
Put simply, HCM systems are critical to streamlining HR departments. They support efficient workforce planning and allow your staff to focus on managing your company rather than data entry. But here are some more specific benefits you can enjoy when you choose the right platform.
HCM systems unify data flows. With immediate access to real-time data from across your business, your team can make smarter, more informed decisions.
What’s more, HR teams won’t waste so much time unifying broken, fragmented data sources from across different platforms. The end result? A more efficient workforce and company.
It’s hard finding time to update data across different, competing systems. As a result, there’s a good chance HR teams may be working with outdated or inaccurate data.
HCM systems eliminate this risk by bringing together data sources. Employee self-service portals let employees manage their own data, and HR and payroll professionals have access to reliable data at all times.
HCM tools are scalable, meaning they can grow and adapt as your business evolves. For example, if your company grows, HR functions become more complex. Your HCM system can rise to the challenge and support growth.
HCM system features to look for
Before you choose an HCM solution, here are five features to look for.
1. Customer service and support
HCM system providers should care about you – the client. Customer service and support should underpin your contract with any HCM platform. Look for a track record of success and satisfied customer reviews. Check that the service agreement matches your expectations and confirm the ways your reps will support you. For example, will you get the specific name and contact information of a dedicated customer service representative?
2. System agility
Your HCM system should be agile. It should be easy to customize as your business needs change.
Look for a customizable system that is configured and implemented to your unique specifications. Check that you can add extra features and capabilities when the need arises.
3. Data unity and compliance
The best HCM system for you is compatible with your IT systems, data flows, and processes. Check that your provider knows how to effectively integrate data. Make sure the platform integrates well with other technologies in your workplace e.g. point-of-sale systems or recruiting sites.
Compliance matters, too, no matter what industry you’re in. Ensure that you’re clear on how data is stored and shared. The processes must match your compliance requirements.
4. Employee self-service
Even if your staff spend much of the day in the same place as your HR team, you need employee self-service. This feature lets workers change their own details at a time that suits them, even if they’re remote or work across different locations. The best part? You’re not creating extra work for your HR personnel.
Even if your team works from one location, self-service empowers your staff and gives them control over their own data.
5. Talent acquisition and management
Right from the moment a new hire starts, employee lifecycle management is crucial. That’s why you need integrated onboarding and tracking tools in your HCM systems. They help you hire the best talent, monitor their performance, and track promotions from a single solution.
Choose the best HCM system for your business
Choosing the right cloud-based HCM system is no easy task. With so many options out there, the search can seem overwhelming. To make the process less daunting, here are some tips to help you select an HCM platform.
- Look for HCM providers with a track record of success. This ensures that you’re choosing an HCM system with a history of helping companies achieve their goals.
- Think about your specific needs and goals. Your HCM system should be fully customizable so it meets your requirements.
- Consider your privacy and compliance concerns. The right management system will help you meet your requirements, and keep data secure, without slowing your operations down.
- Choose your HCM partner carefully. Do your research, ask questions, and check out system demos. Don’t be afraid to try products before you buy.
Custom HCM systems from AllianceHCM
AllianceHCM offers custom, web-based HCM systems for businesses. We develop our database solutions in-house, so we can provide the tools you need to run your company more efficiently. Get actionable insights, track performance, and streamline payment processing with AllianceHCM.
Schedule a demo of our management system or speak with us to learn more.