3 Considerations When Choosing an HCM System

Jul 28, 2023 5:00:00 AM / by Payday HCM

Maybe you’ve heard of HCMs before, or they’re brand new to you. Either way, some fantastic benefits can come from implementing an HCM system, no matter the size of your business. Don’t let the acronyms or business jargon scare you away. An HCM can simplify your business, and save you time and money.  

HCM (Human Capital Management) systems are programs that allow you to perform essential business functions, such as payroll, timekeeping, and human resources via a single online system.

If you’re still using a paper system, this eliminates the need for paper. If you are manually entering employee hours into a spreadsheet, you can completely automate the process. Not only will it be faster, but it will also be more accurate, saving you money.

PaydayHCM is not just an HCM system, although we use an HCM platform called isolved (one of the most reliable), we like to call ourselves an HCM service because we use the isolved platform, combined with personalized service and training in how to use an HCM program.

In this article, we will point out three factors to consider when researching various HCM systems. There are many great options available, whether you have two employees or 200. Knowing how to sort through those options and what to look for to find the best one for your business will save you time and ensure that you find a good fit for your needs.



First, consider the problem you are trying to solve. A vast majority of interactions we’ve had with potential clients are because they’ve come up against a problem they have not been able to solve on their own because they are spread very thin. It can seem difficult to pinpoint a single need when you feel like there are many issues but you can begin by identifying the most costly one, or your biggest pain point and go from there.

Be sure to take a step back and look at the big picture as well. You don’t want a solution that interrupts other processes that are already running smoothly.

For example, if you are looking to improve your onboarding and offboarding, that’s also tied to payroll and benefits. Do you implement changes in each of these areas, or will you begin by only implementing the onboarding/offboarding processes? It’s worth asking these questions beforehand to avoid unexpected interruptions in your other workflows.



Think about who will be using the system within your organization. All the HCM platforms have similar capabilities, but they are not all the same when it comes to user interface and the amount of support provided.

Think about the level of experience your team has with technology like an HCM, and how tech-savvy they are. An organization with tech-savvy employees and those who have used an HCM system will adapt faster and may be ready to put in place the full suite of HCM services immediately. If you have an experienced HR manager in place, the rollout will be much different than a smaller company that only utilizes the basics for timekeeping. 

There are two approaches to this. First, the tech-savvy/experienced employees would most likely be looking at the rollout of all services. The rollout is not simultaneous though. There are specific steps you have to take. For example, all employee information must be entered into an HCM system before payroll and timekeeping can go into effect. A rollout for an experienced team can take anywhere from 6-8 weeks.

The other approach for more novice users and those not used to an entire suite of HCM services is to replicate a system in the chosen HCM program they are already using. Basically cloning and automating what already exists, and then adding on more features as the employees become comfortable with them.



Tying into the previous point, your team's experience level will determine what level of training you need. Because the level and type of customer service offered by each HCM company are different, this will play a large factor in your choice.

Teams inexperienced with HCMs (or automated processes in general) will need substantially more training than the experienced group. It would be wise in this case to choose an HCM company that provides guided and personalized training. We recommend looking for a local HCM company in these cases because they are more likely to be able to offer in-person training.

If you are a tech-savvy, do-it-yourselfer, you can use something basic like SurePayroll. This will most likely be your cheapest option but requires a lot of self-guided training. Larger HCM companies will provide online training or train administrators and managers but rarely will they train at the employee level. Be sure to find out from the HCM companies you are vetting how much training they provide, who it’s provided to and what percentage is guided training, versus self-guided training. 



Because most HCM systems are similar, their features won’t be as important as the result you are trying to achieve. It goes back to determining what your organization's needs are and your team’s level of experience with automated systems.

If you feel your team members are comfortable with technology in general and automated systems (like timekeeping), you can go with one of the larger providers. An HCM system like ADP or Workday might be just the ticket. If you are unfamiliar with HCMs and automated processes, then those might not be your best option. They won't provide the same level of in-person training that a local company can provide for you.

At PaydayHCM, we have a powerful HCM platform we use for our clients called isolved. It provides a single source for all of their management needs, including timekeeping, payroll, HR, taxes, and more. Our main focus though is on training and customer service. We don’t believe in call centers. We provide live assistance through a single point of contact, making your life simpler. We own the training process at every level, from administrators to management and staff. These are important factors to look for in any HCM company, especially if you lack knowledge and experience in HCM systems.

Want more HCM knowledge? Be sure to read our article 3 Reasons to Choose a Combined Payroll and Benefits Service and learn how consolidating systems can save you time and money.


Topics: HCM, HCM Solution

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