Human Capital Management (HCM) solutions can help organizations streamline their HR processes to improve efficiency, save time and money. Proper management of human capital movement is critical for a company’s bottom-line.
Implementing HCM solutions to manage your workforce has multiple benefits. A recent Nucleus Research study reveals the following benefits:
- Ongoing maintenance offers organizations about 90 percent in savings
- Implementing cloud-based HCM solutions can be 79 percent cheaper than on-premise solutions
- For each $1.00 spent, HCM technology results to an average ROI of $9.13
Cloud HCM solutions are in high demand among employers. For those that don’t know, the cloud is an information technology paradigm that enables access to shared pools of resources services that can be provisioned with minimal effort, over the web. The solutions are built to address today’s challenging business technology, legislation and environment. This is apart from their primary function of issuing paychecks.
Below are six reasons why you should be using HCM solutions to manage your workforce.
i) Cloud based solution
Cloud technology is cost-effective. By using HCM cloud solutions, you will reduce the cost of IT support in HR management. You can easily access the solutions from wherever you are and from multiple devices, including PCs, tablets and smartphones.
Multiple parties can also use the same HCM solution at the same time. Any information that is input in the solution is available to all parties accessing it in real-time.
ii) Hardware and software upgrades
The providers that offer HCM solutions to manage your workforce are in charge of hardware and software maintenance and upgrades. Security patches, new features and other functionality are handled without any input being required from you.
The multi-tenancy architecture of cloud HCM systems also ensures there is virtually no downtime during upgrades.
iii) Data security
The data in the HCM solution is kept secure based on industry best practices. Important information about your employees is kept in multiple databases distributed across various locations to prevent loss due to natural accidents or malicious third party activities.
iv) Multi-tasked solutions
Another benefit of using HCM solutions to manage your workforce is that dozens of tasks are consolidated into one application. For example, you can keep track of employees’ payrolls, records, work attendance, etc. in the same application. This eliminates the need for learning or using multiple solutions for various tasks.
v) Better employee engagement
Organizations can also use HCM solutions to improve employee engagement. Whether you are running an in-house or remote workforce, you can easily engage with your team members, access their employee data, make requests for payroll and paystubs, etc. This capability can relieve HR from time-consuming data management processes.
vi) Track employee life-cycle
HCM platforms are capable of core HR and workforce management. Even more beneficial is the solutions’ ability to track employee life-cycle. When using HCM solutions to manage your workforce, you can determine the average life-cycle of employees and plan hiring accordingly to avoid vacancies. This is important for uninterrupted business operations all year round.
Time and money are two critical components that determine the success of any company. When using the right HCM solutions to manage your workforce, your business processes will be streamlined to be more efficient, which will lead to positive ROI and an increased bottom line.