HRM VS HCM – HCM aims to optimize human resource capabilities and align them with the company’s goals and objectives. Effective HCM practices enable organizations to attract, select, and retain the best talent, enhance their performance and provide them with opportunities for growth and development. It involves a continuous cycle of activities that ensure the workforce’s continuous improvement, job satisfaction, and retention.
In today’s article, we will discuss how Human Capital Management Systems such as FlowHCM boost these complex & critical processes of Human Resource Management in an organization.
Human Capital Management Systems & Talent Acquisition:
Human Capital Management Systems help in managing everything from beginning to end. The first stage in talent acquisition is recruitment. A lot of time is spent on hiring and tracking new applicants, which includes placing new job posts and searching for suitable candidates.
With the power of a recruitment management system, hiring managers can create jobs on a recruitment portal, track applicants, and store resumes in a centralized place accessible from anywhere at any time. Human Capital Management Systems allow recruiters to automate the screening process, saving time and effort in reviewing resumes and assessing candidates. HCM systems can even assist with onboarding new hires by providing electronic forms and checklists for compliance and other requirements.
By leveraging the power of HCM systems, organizations can improve their recruitment processes, attract top talent, and ultimately increase their chances of success in today’s competitive marketplace. HCMs can help pace up the onboarding task and make it easier by giving access to the company policies and procedures that show up on the ESS.
Human Capital Management Systems & Talent Management:
HCMs have become increasingly popular among organizations and have been extensively implemented as they can help companies manage talent more efficiently and effectively. These software’s provide advanced tools that make processes which take days, done in a matter of minutes.
Advance Performance Analysis:
Starting from performance management, HCMS can make performance evolution easy and systematic. Imagine in order to do performance analysis, HR would have to first plan it out with the manager, then have to conduct reviews separately, which means 10s of papers for just the single candidate.
But with the power of the Performance Management Module, The performance analysis is now just a matter of a few clicks – thanks to the AI technology. Managers can define the clear OKRs and KPIs and track the performance of the employee against these Measures of performance. These reports are accessible anytime, anywhere.
Ensured Employee Engagement:
To enhance employee engagement, the Human Capital Management Softwares show everyday reminders about the work anniversaries and birthdays of all the employees. This helps everyone in the organization feel connected to the company as well as with their colleagues.
HCMS can have records of the company’s assets that have been assigned to the employees of the organization. This feature helps when the employee separates from the company, and the concerned authority takes the assigned assets back from the employee.
Payroll Management With Tax Calculation:
Payroll management is made easy and quick with the help of Payroll Management Systems in HR Softwares. Accurate payroll calculation is just a matter of seconds that solves a big problem for HR and finance. Advanced Human Resource Management Software such as FlowHCM have the ability to calculate the taxes of the employees as well. HCMs help manage the payroll and other benefits such as medical, provident funds, leaves management, and expense management.
Quick Expense Approval:
Expense approval normally takes days to process in organizations and can now be approved and reimbursed in a matter of minutes. Employees who have to travel for business meetings have to incur travel expenses and sometimes meal expenses as well. Such types of expenses can be compensated with an easy process in Expense Management System.
Accurate Attendance Management:
Attendance Management Modules in HCM Softwares accurately track the attendance of the employees and generate predefined reports, which can be scheduled as well. Managers can view the average daily, weekly or monthly work time of employees and compare them against the number of hours the employees must be working. These reports are available at the fingertips of the managers. This can help managers take decisions within a matter of minutes.
Hassle-Free Separation Process:
Imagine an employee having a critical role in the company resigns, and it creates sudden chaos. A traditional HR would have to first negotiate to retain him or her; then, in case of failing to do so, HR would have to specially plan an exit interview.
The HR manager would have to maintain a record of such interviews, which are in thousands in big organizations. Now, what about the analysis and reporting? It would take several people several days or even weeks to first compile and then analyze the statistics. Now with the Separation Management Module, the whole analysis is done within a matter of seconds.
The employee separation process is hassle-free, and everything from resignation requests to the approval and exit interview is done systematically, and the company can have a clear look at what has been causing the employee turnover and analyze where the organization stands against its goals.
Human Capital Management Systems & Talent Promotion:
An employee does seek not only monetary benefits from the company but also learning and development. HCM Software provides training modules that provide a platform to conduct and track the training of employees. HCMS also help the managers in succession planning to ensure that the organization has a pipeline of qualified people that can perform critical tasks.
The manpower management module can take care of such tasks and give a detailed overview of the manpower of the company. Managers can assess the efficient workforce they have working under them, how efficient each individual is, and how much load one employee can take. Organizations can promote talent based on competency and dedication, which can help them achieve their strategic objectives with the right people in the right positions.