Business management is complex. Some business owners have difficulty with the management aspect of their business and look for other solutions for managing their employees and other challenging issues. Many are turning to HCM (Human Capital Management) services for help. It encompasses everything from payroll and timekeeping to human resources and benefits.
While it may seem like a new concept to some, we at PaydayHCM have been developing ways to help business owners with their needs for nearly forty years; Payday began as a payroll company, and we have expanded our offerings over the years to include the services mentioned above. We made the decision to move from strictly doing payroll to full HCM services because it simplifies and improves our clients’ businesses and that’s our goal.
In this article, we dispel the top 5 misconceptions about HCM services and what they can and cannot do. If you are interested in HCM services but have had some questions, this is your opportunity to get answers.
1. An HCM service will replace my job
This is a concern we hear often. Employees mistakenly think that because they are involved in payroll (or something else that will be automated) their job will become obsolete. This is not the case. In fact, we have seen the exact opposite of that.
Switching over to an HCM system does two things for the organization and its employees. First, it eliminates a significant amount of time spent on manual processes, manually inputting timesheet information, for example. Their time can then be better used ensuring their business is in compliance and that the automated processes continue running smoothly.
It also helps to develop the skills of the employees using the system. Your employees receive valuable technological training that helps them stay professionally relevant. When looking at HCM companies, ask them about the training they provide; many HCM services have self-guided training programs; some will send in-person trainers to train management, so they can pass it on to their employees. The best HCM services will train management and employees, in person, at no additional cost.
2. My business is too small to benefit from an HCM service
This is another common misconception. Many business owners believe that because their business is small, there is nothing to be gained from implementing a high-tech HCM solution. It's a mistake to think that. In the last three to five years, technology that was once only available to larger companies is now available to businesses of all sizes. This is because of major technological improvements that have made HCMs much more user friendly.
An HCM service is also a way to protect yourself and your business from legal problems and liability issues. HR issues are especially sensitive and are an area where many employers get in legal trouble trying to do it themselves. The legal risks are not worth the time, money, and stress they could cause you.
3. My employees will struggle with new technology
Some employees may struggle to get used to new technology or programs at first, this is completely normal though, and something that can be overcome easily. As we mentioned earlier, an HCM company of your choosing should have a training program. Ideally, this program is taught by a live person, who can answer questions on the spot.
Additionally, the systems designed by various HCM companies such as ADP, Workday, and isolved are very intuitive and focus on the user experience. Mobile capabilities are a big deal and should be part of any good HCM service. Be sure to ask if common features (such as timekeeping and pay information) can be accessed via smartphone.
Give your employees credit too, most are well-versed in technology (and if they have any work history) and have probably even used a similar system. If you or an employee are using Excel spreadsheets to keep track of things, then an HCM system will be vastly superior to that and even easier to use.
4. An HCM service can’t do everything that I need it to do
We hear this misconception a lot at Payday. Our potential clients will come to us and say they need a specific report that doesn't seem to be available on an HCM platform. Each platform, whether it’s ADP, Workday, or isolved will have different workflows available.
The beauty of isolved is that even if it lacks a specific report or workflow already in place that you can use, you can have one set up. The isolved platform in particular is extremely configurable and great for virtually any task or report you are doing.
5. HCM services are too expensive
Because this technology has been available for more than two decades, affordability is no longer an issue. You can get an HCM plan from Rippling, for example, that’s a base fee of $35 a month plus $8 per employee. Paychex offers similar services, with a $39 monthly base fee and $5 per employee.
As you can imagine, prices increase from that point, but it serves as a great example that you can get payroll, human resources, and information systems help at an affordable price. A more hands-on service shouldn't break the bank either. At Payday, the cost of a small business to get HCM services is roughly $1,200 per year with a designated customer rep.
Research Pays Off When Shopping HCM Services
Don’t make the mistake of writing off using an HCM system before you do some research. There are HCM options for businesses of every size, at a wide range of prices. We recommend starting by making a list of the most time-consuming management tasks for you or your team. Whether it’s timekeeping, tracking time accruals, or anything else, this will give you an idea of what you need the most help with.
Some simple Google searching will help you immensely. Try searching by service needed and add the term “HCM.” You’ll want to include your business size as well. For example, “timekeeping HCM small business.” You’ll see top competitors, like Zenefits, ADP, and Paychex. These are all worth investigating. Your search results will depend on how specific your query is, so narrow your search, or you will get too many results to comb through.
PaydayHCM has been offering comprehensive HCM services for more than three decades. We excel in helping businesses simplify everything they do, and we save them money by doing it. You can contact us directly if you’d like to know more about our services. You can also learn more about HCMs and how they can simplify your business by reading our 3 Reasons to Choose a Combined Payroll and Benefits Service.