If you ask 10 different HR managers about their definition of HCM (Human Capital Management), you’ll get 10 different answers. This is the result of two things: first, the term HCM has expanded over the last several years to include everything related to general HR functions. Second, the definition is informed by the HR manager’s experience with the HR tools they’re used to using.
For many years, companies have primarily used two types of systems:
- An HR/benefits management tool that has a payroll/time management component bolted on
- A Payroll/compliance tool with other HR functions bolted on
Neither of these solutions is the best tool for managing and empowering employees in the 21st century. Creating a great workplace today requires a complete solution for engaging employees and empowering them with the tools they need to be successful. Leading companies are adapting to an increasingly competitive talent market by investing heavily in retaining their most promising employees on a long-term basis. They know that these employees demand a work/life balance and want their job to fit their lifestyle—not the other way around.
The Keepers of Corporate Culture
HR managers are the keepers of corporate culture—they may not create that culture, but they’re the ones tasked with making sure morale and engagement are high, with happy employees who perform their jobs well. When companies view that cultural relationship from a compliance standpoint, influenced by the software solutions already in place, they adopt policies that often frustrate employees. Employees don’t feel trusted, and their engagement drops off. The end result is a rise in recruiting and on-boarding costs, and a drop in overall productivity.
With the maturity of the internet and other communications technologies, workforces are no longer tied to one headquarters. It’s easier and more common for employees to perform their jobs remotely. This shatters the notion of the “8-to-5” employee in an office cube farm, dedicated to producing a specific number of widgets in a prescribed amount of time.
Employees today have a deeper expectation of their employer—hour-by-hour tracking is no longer de rigueur, and they expect to have the tools, trust, and empowerment that allow them to perform their job functions in the most efficient ways possible.
Because of those two factors—employers seeking to engage a new kind of employee, and employees that have greater expectations of their employer—there must be new systems of engagement and empowerment. This new type of employer/employee engagement demands something that is more than a compliance-based software solution. That solution should be an integrated experience management solution that addresses all facets of work life and the new employer/employee relationship.
As an employer, you need to deploy technology to manage all the mundane but important aspects of compliance and recordkeeping—but can you do it in a way that also empowers employees?
We’ve Replaced HCM
Rather, we’ve redefined it. Instead of a process- and compliance-based approach, we’ve turned it around and designed a system from the employee point of view. We include analytics and management tools for every aspect of employee engagement—from move management and telecommuting tools to shared resource scheduling and conferencing.
Technically speaking, we’ve combined the functions of day-to-day business operations into a single stack relational database. That means the entire system is connected—the time and attendance piece is connected to the travel piece, and they’re both connected to the benefits, move management, and space utilization pieces.
The business benefits of this connectivity are obvious: the employee is able to concentrate on job performance, rather than worrying about whether his PTO is being accounted for correctly, or if he has the proper benefits package assigned to him for his state of residency.
When the employee is more engaged in the management of his or her own employee details, some of the cost and labor burden is shifted from the HR department, leaving those employees to concentrate on other activities.
Employees perform at their best when every aspect of their work life is addressed and they feel empowered and trusted to make decisions on their own. We call it the People Success Platform. We believe that a people management system that is integrated and removes the friction from the employee-employer relationship is mission-critical in today’s business landscape. Adapting policies to the needs of today’s workforce will ensure a business’ ability to compete in an increasingly competitive employment market. Ultimately, companies with the ability to attract, retain, and optimize employee performance will be the clear winners in the coming years.