Human resources is the backbone of any company. The department handles payroll, HR, benefits, compliance, and virtually anything else that’s employee-related. That’s a lot for one department to handle and it’s why human capital management (HCM) is so vital.
Human Capital Management
Human capital management is a set of practices related to managing employees. Every time an HR rep hires or onboards employees, or works to optimize labor costs, that’s human capital management.
It’s when a company manages its assets (people) to the best of its ability.
When a human resource department does this well, the company saves money and runs more effectively and efficiently.
What’s involved in HCM?
One of the main functions a human resources department manages is payroll. Processing payroll can be challenging in and of itself. Hours need to be tracked accurately, compliance needs to be met, and employees need to be paid. Vacation days, sick days, holidays, and leave of absences also need to be accounted for.
That’s why a great payroll system is required to ensure payroll is effectively processed.
Time management is another important practice in human capital management. The employees’ time spent working, including overtime, needs to be tracked efficiently.
That’s usually no easy feat. But with great time management solutions, it’s possible to track time and attendance in order to make more informed decisions, prevent time theft, manage pay policies, and process payroll effectively.
With a great time tracking system, you can eliminate time-consuming and inaccurate time cards and, instead, track employee time in a way that works best for the company.
Administration of Benefits
Benefits are important to employees and valuable to the company. Like payroll, benefits need to be administered correctly. A good human capital management system is able to manage workplace benefits easily.
Benefits administration should be integrated with payroll and other HR functions. Using an integrated workforce management system allows a company to see which benefits employees are using and to make informed decisions regarding the plan. Making everything more streamlined makes benefits easier to manage.
Human Capital Management Systems
Many companies offer systems that integrate the different practices of human capital management; however, it’s challenging to find the right provider. The large companies typically don’t offer great customer service, and the small, local companies often don’t have the state-of-the-art technology you need.
Research your options and try out demos to find the right fit for your business. A human capital management software program can go a long way to improving your business and making it more efficient and competitive.