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What to Look for When Choosing a Human Capital Management System

There are many human capital management solutions on the market today, and most of them are solid, viable offerings that can deliver tremendous value. But, when choosing the right one for your business, there are certain key characteristics you’ll need to be on the lookout for. This will help to ensure that the human capital management system you select will effectively meet your needs – both now and in the future.

Support for Global Workforces

HR and employee management guidelines vary greatly from country to country. Additionally, many cultural differences exist, and if not addressed appropriately, can hinder morale and negatively impact working relationships between managers and staff members. That’s why, when choosing a human capital management solution, you need to look for one that has the ability to support workforce activities that span multiple geographic locations. Look for features such as currency conversion for payroll, as well as facilitation of full compliance with international and local labor laws.

Integration with Payroll Systems

While many human capital management applications offer modules for payroll automation, many companies already have systems like these in place. Or, they outsource their payroll function to a third-party service provider. That’s why it is critical that the human capital management solution you choose is open and flexible, providing seamless integration and data-sharing with other popular payroll management software packages. This will eliminate the need for duplicate data entry (for example, re-keying time and attendance information), while dramatically reducing the time needed for payroll preparation.

Employee Self-Service

Some human capital management solutions (but not all) offer features and capabilities to support employee self-service. This is particularly important for HR departments that are over-burdened with a high volume of routine inquiries and requests. These self-service capabilities allow companies to make basic HR information (such as benefit-related documents, company policies, etc.) readily accessible via the Web, so employees can help themselves to the answers they need, whenever they need them. Additionally, the more advanced human capital management applications also automate routine functions, such as insurance beneficiary changes, benefit enrollment, and vacation/sick/personal time requests – allowing employees to complete forms and related transactions online, and submit and route them to the appropriate supervisors, with out the need for intervention by an HR staff member.


All HR departments store a very high volume of personal and confidential employee information, such as social security numbers, results of random drug tests (where they apply), results of background checks, bank account information (for direct deposit purposes), and much more. So, it is vital that your organization select a human capital management system that leverages the most advanced security techniques – such as password protection, role-based access to information and system functions, firewalls (for Web-based human capital management applications), and data encryption – to keep sensitive employee data fully protected at all times. These features will not only help to preserve the integrity of staff information, it will help companies ensure adherence to all privacy guidelines.