Did you know that 80% of businesses already use HR software systems? In other words, 4 out of every 5 businesses across the globe use technology to enhance their day-to-day operations.
But does using technology inherently guarantee improved business functions?
According to Forbes, 36% of these tech-forward companies report that the platforms they have are inadequate. With over 1 in 3 businesses that use HR software systems citing their current technology as ineffective, the answer to that question is:
No, using technology does not inherently guarantee improved business functions.
Why? Well, just imagine giving two scientists – a biologist and an astronomer – the exact same piece of equipment. Give them a microscope and the biologist will have a field day while the astronomer will be at a complete pause. Give them a telescope and the opposite is true. The same technology that works for one scientist is ineffective for the other. However, give them each the correct piece of equipment for their specific job, and the next thing you know you’ve got a new strain of healthy gut bacterium alongside a new theory of asteroid orbital mechanics.
This same concept applies to using technology to improve your business functions – if you want to see positive results, you need the right system for your business.
In this article, we will discuss Human Capital Management (HCM) technology, its role in modern business operations, and how selecting the right all-in-one HCM system can be a game-changer for your organization.
By reading it, you’ll learn 6 critical considerations to keep in mind when choosing an HCM system, so you can find the technology solution that is perfectly tailored to your business.
What is the purpose of an all-in-one HCM system?
In today's fast-paced business environment, an all-in-one Human Capital Management (HCM) system is becoming an essential tool for companies aiming to streamline their HR processes.
But what exactly is an all-in-one HCM system and what does it do?
Simply stated, an all-in-one HCM system is a game-changer for businesses seeking to modernize their HR operations. It is a comprehensive platform that integrates many different HR functions into a single, cohesive unit.
It typically includes modules for:
- Recruitment
- Onboarding
- Training
- Payroll
- Timekeeping
- Benefits administration
- Performance Management
- Compliance regulation
By consolidating these functions within one system, HCM technology allows HR to coordinate the entire employee lifecycle from a single interface, simplifying the overall HR management process.
In addition to enhancing operational efficiency, HCM technology also provides data-driven insights to help companies better align their HR strategies with their business goals and drive improved performance, heightened employee satisfaction, and ultimately, a stronger bottom line.
For a detailed breakdown of how an all-in-one HCM system can assist your HR, read our article Solve Your HR Problems with Human Capital Management (HCM) technology).
Select the right all-in-one HCM system for your business - 6 factors to consider
If you are like most modern-day businesses, choosing an HCM platform is a decision you will likely encounter sooner rather than later.
So, how do you choose the right one for your business?
In this section, we will cover the 6 most important factors to consider, so that the HCM system you choose can effectively meet the needs and goals of your business.
1. How much does it cost?
When it comes to selecting an HCM system, financial considerations are paramount. It's not just about the sticker price – it's more about understanding the true cost of an HCM system as well as the expected return from it.
HCM systems generally come with various pricing models where costs may extend beyond the initial purchase price to encompass the following:
- Implementation and integration fees
- Customization and upgrade rates
- Subscription-based charges
- Ongoing maintenance fees
- User training expenses
It's crucial to understand the pricing structure and how it aligns with your usage outlook. An HCM system should not be a financial drain but an investment that yields returns. So, you should also consider the return on investment (ROI.)
These returns can be direct or indirect like:
- Reduced labor costs
- Increased productivity
- Improved employee satisfaction
By comparing the expected benefits of an HCM system to the cost of it, you can assess whether it is a cost-effective investment for your business.
2. Is it secure and compliant?
In today's digital landscape, compliance, security, and data privacy are not just buzzwords – they are critical components of any HCM system.
When selecting an HCM system, it's imperative to evaluate its ability to meet compliance challenges.
A quality HCM system should consistently stay updated with the latest labor laws and have the ability to adapt to the unique compliance requirements of different regions where your business operates. Having this adaptability will safeguard your business from compliance pitfalls.
Also, consider the system’s security protocols and data privacy measures. Because your employees' sensitive information will be stored and processed by the HCM system you choose, make sure it has built-in security features that align with industry best practices and can protect your data against breaches and unauthorized access.
By choosing an HCM system that prioritizes compliance, security, and data privacy, you're not only shielding your business from legal and financial repercussions but also reinforcing trust with your employees by safeguarding their personal information.
3. Can it grow with your business?
When selecting an HCM system you need to know that it can scale with your business. A system that fits your needs today but can't accommodate future growth will quickly become a liability. Therefore, it's important to evaluate if the scalability of an HCM system is in line with your business size and growth projections.
An ideal HCM system should flexibly accommodate future HR requirements, whether it's a larger workforce, more complex HR functions, or compliance with diverse regional regulations. It should offer advanced features and modular capabilities that allow you to add or modify functionalities as your business evolves.
The system should also be adaptable to organizational changes like expansion and capable of scaling to meet the demands of an ever-evolving business landscape.
By choosing a system with these qualities, you ensure that your HR operations can support your business objectives at every stage of its growth which will save you time, money, and resources in the long run.
4. Can it be tailored to the needs of your business?
Your business is unique, with its own set of processes, goals, and challenges. That's why the ability of an HCM system to be configured to your needs is crucial.
It's important to assess whether systems can be tailored to the specific needs of your industry and align with your organizational goals and strategies. The system you choose should offer a high degree of customization to adapt to your distinct business processes.
To determine whether a system is a good fit for your business, ask yourself questions like:
- Do you need custom workflows?
- Do you require specialized reporting?
- Or do you have industry-specific compliance requirements?
The right system should be flexible enough to accommodate these needs.
By ensuring that the HCM system you choose can be customized to meet your specific business needs, you're setting the stage to achieve your specific organizational objectives.
5. Is it easy to implement and user-friendly?
The success of an HCM system doesn't just depend on its features – it also hinges on how easily it can be implemented and adopted by your workforce.
A smooth implementation process and an intuitive interface are critical factors to consider.
First, assess the ease of implementation and how well the system can integrate with your existing infrastructure. Seamless integration minimizes disruptions and ensures continuity in your HR processes.
Then, make sure the system is intuitive and accessible for employees at all levels. A complicated platform can lead to frustration and low adoption rates. Look for a system with a clear, straightforward design that simplifies navigation and task completion for all users.
By choosing an HCM system that's easy to implement and user-friendly, you can ensure a smooth transition and high user engagement.
6. Is it backed by a reputable partner with reliable support?
When investing in an HCM system, the reputation and reliability of the provider are just as crucial as the software itself.
It's essential to investigate the vendor's track record and standing within your industry. A vendor with a solid reputation is likely to offer a more reliable and high-quality product.
Equally important is the level of customer support provided. Quality customer support can significantly ease the implementation process and ensure consistent system performance.
Evaluate the vendor's support and service models carefully by considering questions like:
- Are they proactive?
- Are they responsive when issues arise?
- Do they offer comprehensive training and troubleshooting?
Lastly, consider the vendor's stability, capacity for innovation, and potential for a long-term partnership. A vendor that's committed to continuous improvement and staying ahead of industry trends can help ensure that your HCM system remains effective and up-to-date.
By choosing a vendor with a strong reputation and robust support, you're buying more than a product – you're investing in a partnership that can contribute to your business's success.
Take the next steps to elevate your business with the right HCM system
If you are here, you know that implementing an all-in-one HCM system may be the next vital step in the direction of business success.
By reading this article, you know what to look for when choosing a technology platform and are ready to compare HCM systems for the features that align with your specific business.
So, are you ready to turn this knowledge into action?
That's where we come in! Here at Combined, our team specializes in HCM solutions and has helped countless employers, just like you, find and implement effective software solutions.
Schedule a meeting with a team member, and together, we'll find you an HCM system that is not just a fit for today, but a foundation for tomorrow.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.
