Human Capital Management (HCM) software is technology designed to help employers to manage, recruit and develop a workforce to become their most productive and engaged selves. HCM software will usually include modules such as a core HR database to store employee data, recruitment, people management, self-service, performance, analytics and much more.
Why is HCM software important?
At its simplest form, human capital management is about putting people first as employers are starting to realise that their employees are their most important asset. Research by Gallup suggests that highly engaged teams show 21% greater profitability for companies, so keeping them engaged directly links to the bottom line.
HCM software has taken the principle of human capital management and converted it into a format that makes it actionable. HCM software enables companies to hire the best talent, maximise their potential through training and development and help them to achieve their personal and company performance targets.
What are the benefits of HCM software?
The benefits of HCM software for the HR team is that it relieves them of administrative burdens and consolidates their processes into a single system, whilst ensuring compliance. Using HCM software, HR teams can effectively support their employees faster, more agile and proactive than they could before.
Even more prevalent is the idea of an increased level of flexible working, accelerated by the COVID-19 pandemic. Employer’s digital transformation strategies have had to be hurried and implemented in a short space of time, with many having HCM software at the centre of this.
Who needs HCM software?
Essentially, any business with a workforce can make use of HCM software, but the level of functionality may differ. For example, a 20 employee-strong company may need a basic database and the options to book time off and submit expenses. In contrast, a company with over 1,000 employees may need a system to manage everything from hire to retire. Ultimately though, the end result will always be the same – to better engage and manage their staff to improve performance.
What are the key attributes of HCM software?
Until recently, HR has been associated with administrative duties such as approving time off, storing employee paperwork or assisting with recruitment. Today, however, HR is changing and finally being recognised as a strategic department and finally having a voice at board-level conversations. As a result, the key attributes of HCM software includes:
- Absence management
- Asset management
- Document management
- Employee engagement
- Expenses and mileage
- Analytics and reporting
- Performance management
- People management
- Recruitment and ATS
- Talent management
- Time and attendance
- Training and development
- Automated workflows
Companies using Natural HR successfully
Hundreds of companies are successfully utilising Natural HR to increase efficiency and demonstrate the value HR brings to the table. An example of this is Pebbles Care who operates in a heavily regulated sector with regular inspections by OFSTED and the Care Inspectorate, needed to supply documentation pertaining to their employees, recruitment and training. Without an HR system, these sensitive documents were being stored in filing cabinets and weren’t readily accessible upon inspection.
Yvonne Thompson Assoc. CIPD said “Natural HR had everything we were looking for and more, including electronic document signatures, company announcements, an intranet, time and attendance, an Applicant Tracking System and document management.”
Our comprehensive support and guidance are also a key reason for Pebbles Care choosing Natural HR. Yvonne commented: “The support offered was key. We knew it would be a huge project getting all our data together in one place but Natural HR was on hand every step of the way and did most of the heavy lifting.”
You can read the full case study here.
To discover more about how Natural HR’s Human Capital Management software can help your company, book a demo today.