What make some companies succeed, while other
fail? HCM may help companies to remain successful or
even grow further. What does every company in the world have in common regardless
of what those companies do? They all have employees. Every company needs to
recruit, hire, train, and manage employees. Once the employees are on board,
the employers need to keep track of employee information throughout their stay
until they are off-boarded. For those employees who are still active at the
companies they work for, their employers need to manage employee performance
and motivate them to perform better.
Managing human capital is not easy. Organizations have
experienced growing complexity.
As companies grow, they
face increased complexity in terms of size, employee demographics,
employee skill sets, and geographic distribution of workforce. Due to tight
resources, HR is in competition with those in revenue generating roles. HR
personnel tend to be more likely to lose out to the types of employees who are
more involved in revenue generation. HR are not as well compensated as engineers.
Typically without a solid frame, the company might feel the effect of the
increasing complexity in managing the workforce. In a difficult
economic climate, it has to deal with under staffing and other issues.
The actual course of managing employees requires twice their salary and the cost is growing. Each “bad hire” can cost a company on average $50,000. Those “bad hires” are those who are not able to meet expectations. Lost opportunities are due to waiting for the “right” hire to show up and the time and money spent on providing formal training for misfits. It costs $9,400 per employee to replace each, who work for a wage of $8/hour. It costs $40,000 on average to replace a nurse and it costs $125,000 on average to replace an IT specialist.
While the core HCM functions remain the same,
new technologies have been discovered and developed to make those process more
efficient and cost effective. Globally available Cloud HCM can support a wide
range of business process and new working paradigms. The information on HCM can
be updated immediately and made available to all users.
HCM Toolkit
HR toolkits can support the entire cycle of
employee management: recruiting, hiring, training, tracking, managing,
performance, motivation, and off-boarding.
Hiring
IT: I need an engineer!
HR: When?
IT: (3 days
later) ASAP!
HR: (3 days later)
Can you give me a job description?
IT: (5 days
later) Here it is!
HR:
(5 days later) I had some fires
to put out; I’ll get
right to it.
IT: (10 days
later) Lead engineer just had a nervous breakdown and left. Can you also
find a lead engineer ASAP?
HR: (3 days later)
Can you give me a job description?
Over one and a half month – this process is
inefficient. The HCM software can provide automated job requisitioning that can
improve the communication and approval work processes among the members of
hiring committees. The facilitated application processing automates follow-up
reminders and notifications for the next stage of recruiting and hiring. The hiring
application can update HR and hiring managers in regard to the interviewing
state of the candidates and it enables the storage of prior history of employee
applications. The analytics function can provide current status of hiring
efforts, review past hiring trends and turnover statistics, and allow one to
see budgeting and forecasting figures to plan better HR. As a company grows in
size, it becomes more difficult to manage these HR activities. Without
efficient HR processes, a company is less likely to hire better suited
employees to meet the needs of the organization.
Hiring: Evaluation
The HCM software can automate applicant
assessment by administrating application qualification tests and storing the
test results. It is able to solicit, gather, and share feedback among the
hiring or interviewing committee for each interview. The HCM software provides
automated workflow that is able to secure permission to run background checks
and job qualification tests to candidates.
Hiring: On-boarding
What happens if that new employee has to wait
for new supplies to arrive? This definitely can be avoided by using the cloud
HCM. Most of HCM on-boarding collects all the information. The on-boarding checklist
ensures that work processes are consistent for all the candidates in compliance
with employment laws. It offers the features that includes mandatory form
completion, sign-off, and timely filing of information. In addition to form
completion, the software also has requisition order completion and
distribution. It enables access to the resources appropriate for the job,
including any training manuals and instructions. The new hire is on board.
Now what can HCM offer to manage the new
employee? HCM enables one to convert candidates into new hires while retaining
the candidate application information on file for future reference. HCM
automated on-boarding checklists ensure consistency of employee management
processes in a compliant manner. The HCM contains mandatory forms for employees
to file on their own.
Management: Training
The HCM allows management to assess the
skills of the entire organization. HCM can help HR to conduct online training
and store any information including any licenses and certifications. It
provides reminders about mandatory updates and re-training and
re-certification. These training processes on HCM offer the employees the
ability to expand their professional skills. HCM also can provide insights to
HR and management teams about what the skill sets the organization currently has
and the skillsets that the organization needs to continue to grow.
Management: Time Tracking & Scheduling
HCM allows HR to efficiently track employee
time worked and absence across projects, business units, departments, and
activities. The HR software also offers self-service to the employees to ask
for time off or overtime and to get approval for those times off or absent.
Management: Performance Tracking
HCM can help an organization to establish individual
and team goals and track performance against measurable targets, team
performance, and the overall organization vision and mission. HCM can provide
insights into performance across the entire organization that can enable HR and
management teams to respond in a timely manner to further improve employee results.
It offers guidance for calculating the ROI resulting from employee training and
other professional development activities. HCM allows career planning for
employees in order to motivate continued growth and development.
Infrastructure
Employee self-service functionality allows
each employee to manage his or her own demographic information, benefit
enrollment, time off requests, training updates, etc. HCM provides access to
company forms, policies, and handbooks. It enables HR to access third-party
employment laws to ensure that HR recommendations are in compliance with the
most recent regulations.
Closing
According to International Data Corporation,
all segments of the HCM software application market will grow by 12.3%. What causes adoption of HCM into HRM? HCM
provides HR with better software tools with better operating efficiencies, more
cost effectiveness, and compliance with regulations. HCM on mobile devices can further the
range of HR functions the HCM software can support.
.
No comments:
Post a Comment