What is Human Capital Management (HCM)?
Human capital management (HCM) is the set of practices, an organization uses for recruiting, managing, developing, and optimizing their employees to increase their value to the company.
The management of human capital is made easier with the use of software that handles various processes and functions related to workforce management, resulting in cost and time savings.
Numerous HCM software systems are available in the market, each with distinct capabilities and advanced features. Therefore, it is crucial to assess an organization’s current and future requirements before choosing one. While some organizations opt for HCM software installed on their own server or hard drive, most prefer cloud-based HCM software due to its various benefits such as the convenience of accessibility from anywhere, flexible expansion capability, and automated software updates.
Human capital management results in:
- Hiring the right talent at right time
- Having all the needed skill sets in the company’s workforce
- Managing employees effectively and efficiently
- Increasing overall productivity
Human capital management is made up of a series of administrative and strategic applications that include:
- Time and Attendance
- Benefits and retirement services
- Talent management
- Reporting and analytics
Difference between Human Resource Management and Human Capital Management?
Human resource management (HRM) primarily focuses on core administrative Human Resource functions, such as maintaining employee files and records and administering benefits for them. Human capital management is a broader term that includes HRM functions as well as strategic core functions such as analytics and performance management and productivity and utilize employee skills efficiently and effectively.
What is HCM Software?
Human capital management software, also known as human resources software or HR software, is a type of software that helps businesses manage their workforce more effectively. This software is designed to automate many of the time-consuming and labor-intensive tasks that HR departments must complete, such as employee data management, payroll processing, benefits administration, and performance tracking.
Main benefits of HCM Software
Human capital software can provide businesses with a range of benefits. For one, it can help to streamline HR processes and reduce the amount of manual work required. By automating many of the tasks involved in managing a workforce, businesses can free up HR staff to focus on more strategic activities, such as talent management and employee engagement.
Another benefit of human capital software is that it can help businesses to make better-informed decisions about their workforce. By gathering and analyzing data on employee performance, turnover rates, and other HR metrics, businesses can gain valuable insights into their workforce and use this information to make more informed decisions about hiring, training, and compensation.
Types of Human Capital Software
There are many different types of human capital software available on the market today, each with its own unique features and capabilities. Some of the most common types of HR software include:
- Human Resource Information Systems (HRIS): HRIS software is designed to help businesses manage employee data, such as personal information, job titles, and compensation. This software can also be used to track employee performance and generate reports on HR metrics.
- Payroll software: Payroll software automates the process of paying employees, including calculating wages, deducting taxes and other deductions, and generating paychecks or direct deposits.
- Time and attendance software: This software allows businesses to track employee hours worked, overtime, and other time-related metrics. This can be useful for managing schedules, tracking attendance, and calculating payroll.
- Performance management software: Performance management software helps businesses to track employee performance, set goals and objectives, and provide feedback and coaching to employees
- Benefits administration software: Benefits administration software is designed to help businesses manage employee benefits programs, such as health insurance, retirement plans, and vacation time.
How to choose a human capital management system?
When choosing human capital software for your business, it’s important to consider your specific needs and goals. You should also consider factors such as cost, ease of use, and compatibility with your existing systems.
In conclusion, human capital software can be a powerful tool for businesses looking to manage their workforce more effectively. By automating many of the time-consuming tasks involved in HR management, businesses can free up their HR staff to focus on more strategic activities, while also gaining valuable insights into their workforce. With so many different types of HR software available on the market today, it’s important to carefully evaluate your options and choose the one that best meets your needs.
Where to buy HCM Software?
Professional Plus (Audit & Accountancy Firm) is selling HCM Software – Cloud version and On-Premises through their online stores.
Pricing for at least 10 employees starts from PKR 1,500 per month.
Techno Financials HCM module empowers managers and teams to streamline complete employee information. From new hires / inducted, employee onboarding, performance management, payroll, promotions, and compensation changes – all from a single module! It enables employees by providing them with the ability to request time off, set their goals, access to employee directories and organization charts / organ-o-gram, monitor upcoming vacation or leave schedules, monitor performance of new hires, publicly recognize peers for good work and environment, and much more via the ESS! Click here to check pricing and details..