Key Features of Human Capital Management
Human capital management solutions are powerful, feature-rich technology applications that help companies enhance all aspects of human resources administration and employee relationship management. Some of the key functionality of today’s most popular human capital management systems includes:
Global Workforce Management
Many companies are expanding their operations around the world. Yet, cultural barriers, varying regulatory requirements, and other factors can impact workforce issues. With human capital management systems, global businesses can more effectively coordinate the administration of staff members across all disparate locations, even those that span multiple continents.
Staffing and Hiring
Finding the right candidate for each open position is crucial to the success of any business. With a human capital management system, companies can improve the way they generate and maintain job descriptions, better match desired skills and backgrounds with specific roles, and more thoroughly review applications and evaluate candidates. Additionally, human capital management can accelerate the handling of internal transfers, job changes, and promotions.
Many human capital management solutions automate payroll-related functions from end-to-end, including calculations for hourly wages or sick/vacation/personal time utilized, on-demand check or direct deposit printing, and transmission of payroll data to third-party processing firms.
Training and Education
With a human capital management application, companies can accelerate the on-boarding process and help new employees get up to speed as quickly as possible by creating a variety of course materials and making them readily available via the Web. Those same training materials can also be used to expand the skill sets of existing employees, or to help current staff members acquire the knowledge they need to take on bigger roles and responsibilities. In many human capital management systems, managers can also assign courses and deadline dates, track progress, and measure the impact of training programs on job performance.
Time and Attendance Tracking
Paper time cards, manual punch cards, and other hard-copy forms are often used to track time worked. Human capital management solutions eliminate these labor-intensive processes, accelerating payroll preparation and increasing accuracy, while boosting HR staff efficiency.
The management of benefits such as medical, pension, and stock purchase plans can be cumbersome, labor-intensive, and repetitive. Human capital management fully streamlines and automates all related activities, including enrollments, amendments, beneficiary changes, and discontinuation of coverage.
Human capital management solutions create consistency in the way periodic performance reviews are conducted, approved, and managed. Additionally, they make the entire performance appraisal process more open and collaborative by facilitating bi-directional feedback between supervisors and employees.
With human capital management, companies can promote fairness and consistency in their compensation policies, ensuring that everyone is paid fairly based on industry standards, as well as responsibilities, performance, and seniority.
HR teams are typically small and overworked, juggling multiple priorities at any given time. That’s why many human capital management solutions offer employee self-service capabilities, so workers can help themselves to basic information about policies and procedures, or complete and route simple forms such as benefit enrollment and vacation requests.
It is this component of human capital management that takes HR from a standard back-office function to a strategic operation. By allowing companies to analyze HR-related information and using it to identify the crucial trends that impact employee satisfaction, performance, and retention, human capital management systems truly enhance workforce planning and management and create a stronger bond between the company and the employee.