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Human Capital Management is
all about managing employees, the most valuable asset of any organization.
A well-designed HCM strategy would take a complete life cycle approach to
employees, covering everything from recruitment and hiring through
training, career development, and compensation. The ultimate goal would be
to help an organization realize, maximize, and manage the inherent value
of its workers. This goes beyond the typical HR functions of payroll and
benefits. Simply put, a good HCM product is HR software powered by
business intelligence.
Main Components of HCM
Solutions:
Performance Management: Every
organization carries out performance reviews of its employees. Done
manually, it takes up a lot of precious time away from managers. But, this
procedure could be automated quarterly. Time-bound performance reviews and
appraisals between an employee and his or her boss can be carried out
online, enabling a 360 degree review. Each employee can be tracked from
applicant stage through internal position changes, to the end of the
separation process. The performance management system usually links to the
compensation systems. Some vendors also offer software that allows
succession planning.
Recruitment Management:
Recruitment or talent acquisition is a crucial aspect of any strategic HR
strategy. While seeking to fill up a good position, a manager can quickly
identify a pool of employees suitable for the job. He can sift through the
database and identify a suitable employee for a certain project based on
the parameters that are fed in, such as years of experience, requisite
skills, and qualifications.
Workforce Management System:
When organizations view employees as assets, it is obvious that the assets
are tracked and monitored effectively. Workforce Management Systems
usually involves staffing, tracking, and rewarding employees. It tracks
the status of labor activities including current active projects, work
orders, man hours, and compensation data.
Payroll and Compensation
Systems: HR software began its journey with this solution and as the name
indicates, the system enables HR managers control overall aspects of
payroll processing operations. Many vendors are bringing out scalable
platforms that allow customers install and operate payrolls that are
compliant with local requirements at any global location.
Using this system, employees
can view their salary slips online, their personal data around
compensation and benefits, and also get a copy of their latest earnings
statement.
Policy Compliance: A
lot of international and local compliance regulations require
organizations to report their HR areas such as payroll, benefits,
pensions, and others. The new Clause 49 of SEBI regulations defines, among
other things, corporate governance standards and requires a certification
of a true and fair view of financial statements. Listed companies need to
conduct a Policy Compliance Program periodically. This entails employee
confirmation on various internal processes and policies as a part of the
Compliance Program. |
