In the eyes of many, human resource information systems (HRIS) are antiquated, disparate, and redundant. If you are like most companies, you may have even heard this from one or multiple of your HR professionals in your company.
So how do HR professionals choose and implement newer and better systems to do the work of the digital age? The answer is modern human capital management.
Why Human Capital Management?
Whether your company has single or multiple locations, a top-tier solution brings together the essential functions of HR by simplifying the process of managing your company’s most important asset: your people.
Human capital management (HCM) is specifically designed to streamline and simplify the core and essential tasks of any business such as:
- Employee Benefits
- ACA Management
- Hiring & Onboarding
- Time & Labor Management
- And Everything Inbetween
Having a single system of record for HR data can save hundreds of hours for a busy department and go a long way toward increasing data accuracy and operational productivity. Reliable and consistent reporting is also key for meeting a company’s compliance and legal obligations.
One of the key advantages of a next-generation platform is:
- It can interface with virtually any accounting system
- It eliminates double entry
- Allows for more sophisticated reports
Plus, new custom general ledger reporting is a snap. This helps clients easily figure out the labor burden of any job. In fact, it gives the burden by the hour for each employee — including:
- Hourly Wage
- Workers’ Compensation
- Employer Taxes
- Social Security
- Unemployment (federal and State)
- Union Dues
- Health Insurance
- 401K Contributions.
“This kind of robust data helps our clients easily see and analyze the cost of doing business from a labor standpoint — which is almost always their largest expense. With this system, you will be able to see and manage cash flow and job costing in your own customized system,” says Andy Siegel, CEO, and founder of Payday HCM.
A modern HCM solution can also help HR professionals work through the emerging trends of coaching and training managers in employee development.
- Effectively using workforce analytics
- Maximizing employee engagement
- Rewriting policies to address the issues of employees
- both globally and locally
- Meeting the changing expectations of baby boomers and millennials in the workplace, including:
- Employee self-service to make updates to their demographic information
- Updated technologies are also scalable, so features can be added as a company grows.
Most modern data systems follow the SaaS (Software as a Service) model, which means the software is licensed on a subscription basis and is centrally hosted.
When shopping for a new system, one of your requisites should be that the provider maintains formal and comprehensive security programs. A key indicator of those programs would be certified third-party audits looking at the security of customer data, protection against security threats, and the prevention of unauthorized access.
Better technology and software are the key to better administration, especially when legacy systems are no longer meeting the organization’s needs. By investing in HR technology, you’ll give your Human Resources staff the support they need to move their focus away from process-driven and data-crunching responsibilities.
Releasing the HR team from the time wasted with redundant or isolated systems pays dividends by allowing them to do their true jobs: maximizing employee productivity and supporting your business goals through the nurturing of employees.
The true value of a modern HCM system is, that you can give the HR Department back their seat at the table to work on the human-centric issues that impact every company’s bottom line.
Whether your business is five employees, 5,000, or more, chances are that now is the time to make a change for the better!