The Best 20 Features Of HCM Software To Simplify Business Processes
Managing human resource functions is not an easy task, after all, it requires skills and talent, hence it takes smart software to help in automating all the manual work and getting it done in less time and more accurately. To help organizations automate their work, all the IT consulting firms advise installing HCM software.
HCM is human capital management software, it refers to a set of practices related to people resource management. These practices are focused on the need of organizations to meet the specific needs of their employees.
HCM is a technology application that can help employers to manage and look after their employees. It is intended to help an organization manage and maintain its workforce effectively. Generally speaking, human capital management software is considered to be an enterprise-class software that can improve and automate processes like payroll, performance reviews, training, and recruiting.
A dedicated software development team always suggests using software that will ease your workload, as it transforms the traditional administrative functions of the human resource department into an opportunity that can drive engagement of employees, the productivity of the overall workforce, and business value. It supports all the aspects of the HCM functions and eliminates the manual process.
Such software helps in bringing talent planning, management, and analytics together in a single system so companies can help people reach their full potential. The best HCM software makes it possible for a company to manage human resource processes effectively and support its workforce in faster, smarter, and more active ways than it ever could before.
Importance of HCM Software
Cloud-based or cloud computing services suggest HCM software is essential for HR to successfully manage a remote workforce. A powerful HCM solution can give HR managers the ability to track payroll, benefits, time and attendance, recruiting and hiring, and other essential HR functions.
There are other benefits of HCM, such as:
Productivity - In the realm of productivity HCM provides the most and obvious benefits associated with the production and effectiveness of the workforce. By implementing this software a huge number of HR functions, most payroll, and benefits administration can be automated. By adopting an HCM software, the workload from other workers can be decreased and they are motivated to work better and efficiently. HR managers often seem to be troubled by the tasks under their control, HCM software will ease that tension and increase the workflow.
Focus - The traditional process of selection and recruiting and hiring in an organization takes a lot of time and effort of the HR and other workforces, replacing those old processes with HCM software helps in focusing on hiring the better employees in the company.
By focusing on the important tasks of hiring well-trained and the best people in the company and improving the workflow in it.
Reduced Errors - Errors made by humans while following a traditional procedure for managing all the tasks in an organization can lead to major complications both financial and legal. While having automated software helps in reducing the chances of errors during the process.
By automating the most basic tasks like payroll, administrative benefits, and others, it gets easier for the managers to focus on different tasks and balance the workflow.
Motivated Workforce - An automated software that decreases the workload on the employees is absolute bliss for everyone. Workers are seen to be motivated towards their work as they are not under any pressure.
HCM software proves to be one of the most useful in any kind of website development company and other companies, it ensures a smooth working environment in the organization and also keeps the production up.
Trends And Scope Of HCM Software
Trends keep changing in the IT professional services and those trends are proved to be important for the overall development of the organizations. Similarly, some major trends in HCM software can be,
1. Integrated Systems - The strength of an HCM system is defined by the output of its functionalities. It is driven by the data now more than ever in order to have it set in leadership discussions around development.
2. Growth In AI - If you have all of your data in a centralized system, that makes your reporting abilities much more powerful. Even with the current strong reporting that we are seeing today, there is already a shift to move beyond the typical idea of what reporting means.
3. Self Servicing - As of early 2021, 85% of adults in the US own a smartphone. For people under 50, that number increases even higher to 95%. Employees are more comfortable than ever handling technology. In fact, most employees are now noticing how difficult it is to use the software programs provided to them by their employers.
Hence, the self-service trend is growing in the market and will continue to be like this.
All employee processes with respect to recruitment, payroll, employee performance analysis, training, asset management can be effectively managed by HCM software. It triggers the role of enterprise-class software in fulfilling all the business needs.
A Human Capital Management Software can be in other words called a Human Resource Management system or a Human Resource Information system. The underlying function of all these software applications is to efficiently and effectively manage an employee workforce within the organization.
Based on recent HR software market analysis, the global HR market is seen to become a $38.17 billion industry by 2027, growth is expected to be fueled by analytics, mobile apps, and vendors’ renewed interest in team-focused management. Developed initially as talent management tools, HR platforms have evolved into what they are today.
10.4% – the projected compound annual growth rate of the HR market. (Grand View Research, 2020). 9.4% – projected increase in the size of core HR software from 2017 to 2025. (Grand View Research, 2020). 13% – the forecast growth rate of the market for talent management tools. (Grand View Research, 2020). $13.8 billion – the projected total value of the market for hosted HR software. (Grand View Research, 2020)
Best Features Of HCM Software Which Will Simplify Your Business
There are a number of features that makes HCM software that will simplify your business and its workflow, such as:
1. Employee Information Management
HCM software should include a complete directory of employee profiles that can include personal information, job and salary history, banking and tax details, insurance plans, time off requests, disciplinary history, performance feedback, or any other custom fields important for the company.
This keeps all of your employees’ information linked to the main record, for ease of tracking and reporting. HRIS systems can provide an employee self-service portal, letting them log in and view important information as well as a knowledge base of informative documents.
2. Talent Management
HCM software with great talent management HR features continues to evaluate employees well beyond the interview process. Once hired, performance assessments provide information on employee productivity, customer satisfaction, and more.
These programs can offer automated feedback, or HR departments can base their own reviews on the analysis provided by the software. Depending on the system, employee performance feedback may be visible to the workforce via a dashboard or some other kind of interface.
This eliminates the need to notify employees of any evaluations via email or engage in time-consuming performance review meetings.
3. Management Of Benefits
Managing employee benefits including healthcare and contributions of compensations, is a major component of any HRMS solution. Your human content management software features should facilitate the workflows and information for benefits.
Additionally, permitting employees to enroll in benefits through the HRM minimizes errors and extraneous work.
4. Recruitment And Hiring
Statistics say about 22 percent of employees hired leave their jobs in the first 45 days. The statistics say it all, the hiring process tops the list in the field of human resources.
Include a strong Recruitment Module in your HCM Software, which provides support for creating a database of the talent who will add to the company’s progress. The recruitment and hiring module helps in creating advertisements, manages applications, administers documents, etc. The module saves time, ensures that there is no repetition of the same process.
5. Management Of Finances
Managing the finances of a workforce is one of the most integral duties of a human resource department. Through the use of an HCM system, your business can streamline this essential HR functionality and ensure all employees are properly compensated.
Base salary administration, bonus programs, commissions, and stock and long-term incentive management are included in various modules. Some HRM solutions provide compensation management to simplify your company’s financial planning.
6. Time And Attendance Management
HCM systems can provide functionality for scheduling shifts and attendance to ensure compliance with staffing needs. These human resources software solutions can schedule employees across departments, locations, and projects.
Furthermore, many HRM platforms alert employees when schedules change or staffing levels are inadequate. Electronic timesheets make payroll and time tracking smooth. Time off management features handles paid time off accrual and use, maternity/paternity leave, and other absences.
7. Professional Development
Training and learning courses are vital to keeping your workforce up-to-date. A learning management system (LMS) included in a human resources management platform may be pre-loaded with educational resources and/or give users the option to upload their own customized materials to the software.
Some HCM solutions can also tie into external systems to help provide course content to your employees. Keeping track of what certifications your employees hold minimizes staffing and planning issues.
8. Technical Features
In addition to the requirements of functions, it is important to evaluate the technical aspects of HRIS software that your business will need in an HCM system. This may include standard technology-related aspects such as deployment, mobility functions, and options.
Management options such as security, governance, and user support are also important features in the software, it is essential to consider the existing technical knowledge and infrastructure of your business when evaluating this category of features.
Most newly hired employees find it intimidating to interact with the management, which often leads to low morale, and it can also leave a new employee in confusion about the new organizational structure.
This module will help in familiarizing the staff with all the new employees and make sure they are comfortable with the onboarding process and requirements. The onboarding feature provides automated delivery of important information to hire new employees, immediately sends team-based tasks regarding the new workforce, and also provides a real-time paperwork tracker.
10. Payroll Management
Rolling out payments correctly and managing them can be a hustle interfering with the other ongoing tasks. A company would rather choose to automate its payroll management to ensure authenticity, error-free, and effective process.
HCM software provides this separate feature to their customers to maintain an effective flow of the payroll management process. This feature ensures that the workload from managers is decreased and the chances of errors are less.
11. HR Capabilities
The human resource system performs numerous tasks and all of these deal with the organization’s ups and downs. Hiring a new employee in place to manage them until their retirement is what takes the HR capabilities to do.
These HR tasks are automated under the HCM software, they are just a click away from achieving the company goals. These capabilities include platform integrations for payroll, benefits administration, compliance management, and employee data management. With these everyday functionalities, the HCM software can help free up a lot of time from admin tasks that are routine and mundane.
12. Workforce Management
While the core HR functionalities help manage all everyday aspects of an employee’s life, the workforce management feature takes into account work and productivity aspects that help in planning work better. The sub-features include time and attendance, workforce planning and scheduling, leave management, and workforce analytics.
By managing the workforce HCM software ensures a smooth transition of the workflow and effective working system.
13. Business Intelligence
Data and analytics enable organizations to build people-centric cultures that are focused on achieving business excellence. Sub-features include data visualization, effective reporting processes, and predictive analytics.
HCM software will keep up with the trends and will help you in managing all your data to make your organization more efficient and effective.
14. Performance Management
Monitoring the performance of each worker when it comes to overall efficiency is vital. Organizations should have a system that carries the detailed performance data of every employee.
HCM software will help your organization in managing all the reviews and feedback to the system, will guide in creating and filling forms, provide necessary notifications to the employees, and deliver a selective review system for the individuals.
15. Data Management
The data management feature includes employees’ complete data like medical history, leave management, PPF and EPF forms, Grievance history, and other payment-related information.
The data management features ensure that the HR has a full employee record of anything that is relevant to the organization or the employee.
16. Job Opening Management
This feature includes all the information for current vacancies. This feature includes Job descriptions, skills requirements for the job, and the status and number of vacancies.
The Jobs are linked to various departments and followed by print media which displays the information regarding the opening.
17. Company Documents Management
The human resource software also ensures that all relevant company information is well managed. The legal documents, Holiday lists, business documents, policies, benefits, and insurance-related information are the features covered under the software.
18. Training Management
The training process of employees, whether they are existing or new ones, takes a lot of time and effort. To reduce them and avoid the chances of missing any point, HCM software is used for the training and development process.
Training is a crucial part of the growth and development of any organization, it helps in keeping the workforce of any company updated on the new trends and working style of the industry.
19. Safety Management
Cloud-based services undertake safety as a profoundly serious activity. The management of these databases on a virtual and shared platform raises doubts in the minds of the users.
The software works under high protection, there is a security process that is followed, and the codes and passwords are created with great precision. The data that is transmitted or received is done in encrypted form, and there is a continuous update that ensures that there is no threat to the system.
20. Automated Switch Off
Time off can be a hassle to calculate, track, and use if done manually. That is the reason PTO should be managed by the HCM system. With the right features, you will be able to specify the way time off is calculated, and the system will automate the adjustment each time an employee takes a leave or is not present.
This way you will not have to wonder if you recorded that time or double-check it. The computer will do it accurately every time and will remove the potential of a human error.
In A Nutshell
While concluding, it can be said that HCM software is the most useful software nowadays, there are a number of software working for the benefits of administration. To have your business work in the most simplified way possible, it is important to have the software working in the right way.
The features of the HCM system will help you simplify your business by providing the easiest ways to perform your tasks, and ensuring their effectiveness.
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