Best HCM Software

HCM Software Guide

Human Capital Management (HCM) software is a specialized type of software that helps companies manage their human resources, payroll, and other key personnel information. This includes recruitment, onboarding, benefits administration, time tracking, employee performance management and more. HCM software is designed to help organizations gain visibility into their workforce data, enabling them to make informed decisions about how best to recruit and retain the right people for their business needs.

HCM software can be used in different capacities within an organization. It can automate the recruitment process by providing job descriptions and skill sets that match a company’s desired positions. It also helps track applicant progress through the recruitment stages, allowing HR professionals to quickly identify those who may fit well in the organization. Furthermore, HCM systems are often integrated with payroll systems so that employees can quickly access their paystubs and other related information online.

HCM solutions can also streamline various aspects of HR processes such as onboarding new employees or managing leaves of absence for current ones. This enables businesses to save time and money on manual processes associated with these tasks - such as paperwork filing or making sure all relevant documents have been signed - while at the same time always having an accurate view of employee status in case any changes need to be tracked or reported internally or externally.

Additionally, an effective HCM system should support employee engagement activities such as enabling self-service access to benefits profiles or making it easier for managers to communicate job expectations and goals with their teams via tools like performance reviews/feedback or succession planning/development plans. Ultimately this empowers staff members by giving them clear paths towards career growth and ensuring they are working towards achieving successful outcomes both at individual and organizational levels.

Finally, HCM solutions usually come with reports generation capabilities which enable leaders to analyse data trends within their workforces over time – such as diversity statistics – while also providing insights into areas where improvements could be made within the organization from a HR point of view. By having real-time visibility into workforce metrics organizations are better equipped with decision-making tools needed for long term success in today’s competitive markets.

What Is the Role of Human Capital Management Software?

Essential people-centered functions are what human capital management software is put in place to manage. HCM software solutions include many integrated applications that are created for this purpose. Human resource management systems (HRMS) and human resource information systems (HRIS) are similar, but their roles differ slightly.

As companies’ evaluations of human talent make it an increasingly important strategic priority, HCM continues to expand. Companies understand better than ever that human capital is arguably their most crucial asset. A company’s prosperity often is determined by how skilled, productive and well-trained their workforce. Workforce development, therefore, is an area into which businesses are now directing their resources.

Product suites and software systems that optimize the workforce development process are now valued quite highly. The range of HCM solutions available to the businesses today is quite expansive thanks to the number of software vendors that have chosen to enter the HCM market. Many of these available HCM solutions seek to provide companies with the most intuitive and streamlined HCM management process possible.

What Is the Difference Between HCM, HRMS and HRIS?

Sometimes, it can be difficult to distinguish between Human Resource Management (HRM) and Human Capital Management (HCM). Although HRM and HCM differ greatly as disciplines, there is still a high amount of overlap, which is why some people will often use the terms HRM and HCM interchangeably.

The individuals who an organization’s workforce consists of are known as its human resources. Meanwhile, human capital refers to a more value-oriented idea of human resources, and it is not finite like human resources. Investing properly in human capital can produce even greater human capital for a company.

HRM solutions are in place to manage a company’s current personnel activities. This organizational function’s nature is more on the administrative and transnational side. It includes reporting, worker benefits, payroll, compliance issues and more.

HCM solutions are more concerned with development than administration. With regard to human resources, HCM is tasked with planning effectively for a company’s anticipated growth. Measuring workforce performance and nurturing successful professional development are priorities for HCM solutions.

Human resource information systems, or HRIS, are considered the original human resource technology. HRI systems were initially created as simple administrative task management systems. Although HRIS is not used nearly as often as either HCM or HRMS, HRIS is still a popular HR product, and its functionality is quite similar to the functionality of HRMS suites.

What Are the Benefits of Using HCM Software?

A company’s workforce can be more efficiently promoted when HCM software is employed. Several HCM software vendors sell entire HCM suites that are designed to handle employee life-cycle management, and these suites successfully merge various activities and needs related to this process of employee life-cycle management. How can HCM software increase your company’s performance?

1. Better decision-making: HCM systems weigh workforce insights quite heavily. Smarter decision-making can result from the amount of high-level data analytics that both executives and grant managers receive from HCM systems. Among this data, talent gaps, hiring trends and employees’ skill sets are included.
2. Compliance: When it comes to both regional laws and sector-wide regulations, HCM software has tools that organizations can use to ensure full compliance. This is especially useful for the type of company that must operate at an international level because of how many different jurisdictions must be taken into account.
3. Strategy over tasks: Daily operations are secondary to strategy as far as Human Capital Management systems are concerned. This level of strategic focus is highly beneficial to the companies who decide to employ top-notch HCM systems. Workforce analytics, workforce planning and succession management all empower companies to focus on strategy and the big picture instead of giving too much attention to daily tasks.
4. Employee engagement: Tools such as eNPS are often included in HCM software solutions, but even more advanced technologies, like pule surveys and sentiment analysis, are included in some HCM systems. His helps companies monitor workforce engagement as well as improve it.
5. Increased productivity: HCM suites’ tools are able to promote productivity by measuring employees’ performances, identifying potential production obstacles and even helping to manage goals. Within the organization, you will have a better understanding of which specific areas must be enhanced thanks to this level of employee engagement insight.

HCM Software Features

A wide range of focused applications are offered by HCM solutions vendors. Areas that these applications assist with include talent recruitment and acquisition, workforce management, performance management, continuous human capital development and a focus on individual employees’ values to the company.

Features commonly included in HCM software systems are:

• Talent Management: Tools targeting this area enable organizations to create a stronger workforce that is also more skilled. The talent management aspect of HCM solutions allows both companies and employees to be better positioned for success.
• Workforce Management: Also known as WFM, this module of an HCM suite deals with exit interviews, PTO, non-PTO absences, attendance tracking, workflows and various additional operational activities. More advanced WFM features include productivity analysis and even labor cost distribution.
• HR Integration: All-in-one HCM suites are available from several vendors in the sector. Separate applications and modules are used to tackle benefits administration, payroll and other operating activities. Integration allows products with varying goals to all be used by an organization simultaneously.
• Recruiting: HCM software provides a comprehensive recruiting platform, allowing organizations to source, select, and onboard new employees. It includes features such as automated job postings, candidate tracking, and onboarding.
• Performance Management: HCM software helps organizations track and manage employee performance. It includes features such as goal setting, performance reviews, and competency assessments.
• Payroll Management: HCM software makes it easy for organizations to manage payroll and taxes for their employees. It includes features such as automated salary calculations, direct deposit, and tax filing.
• Benefits Administration: HCM software helps organizations manage employee benefits, such as health insurance, retirement plans, and other employee benefits. It includes features such as enrollment, eligibility tracking, and billing.
• Learning Management: HCM software makes it easy for organizations to track and manage employee training and development. It includes features such as course creation, completion tracking, and assessment tools.
• Time and Attendance: HCM software helps organizations manage employee time and attendance. It includes features such as time clocks, employee scheduling, and attendance tracking.
• Analytics and Reporting: HCM software makes it easy for organizations to access data and generate reports. It includes features such as dashboards, KPIs, and analytics reports.

HCM Software Trends

1. Integration with Other Systems: HCM software is becoming more integrated with other enterprise systems, such as ERP and CRM systems. This integration allows for a streamlined process between the various systems, providing HR professionals with the ability to quickly access information from one system and then use that data in another system.
2. Personalization: Companies are increasingly looking for ways to personalize their HCM software solutions to better fit their specific needs and preferences. As such, companies are turning to customizable software packages that provide greater flexibility and scalability for organization-specific functionality requirements.
3. Mobile Accessibility: As mobile technology continues to become more prevalent in the workplace, HCM software is becoming more accessible via mobile devices. Organizations are beginning to recognize the advantages of offering their employees mobile access to Human Capital Management tools and capabilities so they can manage their tasks from anywhere at any time.
4. Security & Compliance: Cyber security threats are ever-increasing, and organizations need to ensure that their HCM software is secure enough to protect sensitive employee data from external threats while adhering to a variety of legal requirements regarding employee data privacy laws. There is a growing demand for HR technology solutions that include advanced security features designed specifically with compliance in mind.
5. Automation: Automation has become an increasingly important aspect of Human Capital Management software. Automation capabilities allow organizations to streamline the management of processes related to recruitment, onboarding, performance tracking, and payroll processing, among others – all while increasing accuracy and efficiency within these processes.
6. Employee Self-Service: Employee self-service features are becoming more commonplace in HCM software solutions. These features enable employees to manage their own tasks and responsibilities, such as updating their personal information or accessing allocated benefits, without having to contact the HR department for assistance. This helps to streamline the administrative process and reduce manual labor costs associated with managing employee records.

How To Choose the Right HCM Software

1. Assess Your Needs: The first step is to assess what type of HCM features and functions your business needs. Think about your current HR processes, how your employees work, and any specific problems you want the system to address. This will help you narrow down which HCM software is right for you.
2. Compare Vendors: Once you know what you’re looking for in an HCM solution, compare vendors based on factors such as cost, customer reviews, ease of use and customization options. Make sure that the vendor offers any additional features or modules that may be necessary for your business needs. Use the tools on this page to compare HCM software by user reviews, features, pricing, integrations, functionality, and more.
3. Test Drive It: Many vendors offer free trials so take advantage of this opportunity. Test driving the software will give you a better feel for how it operates and if it’s user-friendly enough for employees in all departments to utilize it.
4. Ask Questions: Don’t hesitate to ask questions before committing to a vendor or purchasing an HCM system! Speak with someone from the vendor's sales team or customer service group to get more information about the product and potentially negotiate pricing before buying something that may not end up working out long-term.

Who Uses HCM Software?

• Human Resource Managers: Individuals responsible for managing hiring and employee relations, as well as compliance with labor laws.
• Executives: Leaders who use HCM software to drive strategic decision-making in their organization by monitoring key metrics.
• Recruiting Specialists: Professionals who are responsible for sourcing, interviewing, onboarding and tracking potential candidates using the software.
• Payroll Administrators: Individuals tasked with entering employee payroll data into the system to ensure accurate compensation and deductions.
• Benefits Administrators: Responsible for setting up employee benefits plans within the software, updating information and answering any questions about company-offered benefits.
• Learning & Development Specialists: Use HCM tools to track employee training progress, manage certifications and create learning plans that align with organizational goals.
• Compliance Officers: Work with HR teams to ensure compliance of all personnel records and other required documents being uploaded into the system.
• Data Analysts: Utilize the software’s reporting and analytics tools to gain valuable insights into employee performance, engagement and attrition trends.
• End Users: Employees who use the software to view their personal records, such as pay stubs, benefit options and learning plans.

How Much Does HCM Software Cost?

The cost of human capital management (HCM) software can vary greatly depending on many factors such as the features, capabilities, size and complexity of the organization, as well as any customization or implementation services. Generally speaking, small businesses may be able to purchase basic HCM software starting at around $1,000 while mid-size companies may spend anywhere between $2,000 - $5,000 for a more robust package. For larger organizations with more complex needs, HCM software can range anywhere from $10,000 to hundreds of thousands of dollars depending on the scope and scale of their requirements.

In addition to the original purchase price for an HCM software solution, ongoing maintenance and renewal fees vary depending on the vendor and individual contract. It is important to consider these additional expenses when budgeting for an HCM system in order to get an accurate estimate of total cost over time. Lastly, many vendors offer professional implementation services which may involve additional costs due to the configuration and customization associated with setting up a comprehensive system.

What Software Integrates with HCM Software?

Human capital management (HCM) software is used to help manage the entire lifecycle of an organization’s employees, from recruitment and onboarding to performance tracking and payroll. Many types of software are able to integrate with HCM software in order to further streamline HR operations. One popular type of integration is with payroll software, which helps businesses calculate and distribute employee salaries accurately and on time. Integration with learning management systems enables companies to track employee training and development opportunities, while integrating with document management systems gives HR departments easier access to important documents such as contracts or timesheets. Time and attendance tracking solutions also help organizations ensure that their employees are logging accurate hours worked so they can monitor productivity easily. Finally, integrations with talent acquisition platforms assist businesses in automating recruiting processes like job postings or candidate sourcing. Ultimately, these integrations add convenience for both employers and employees alike by giving them a well-rounded view of the HR landscape across an organization.