BY VIZIO CONSULTING INC.
HRM and HCM, respectively, represent Human Resource Management and Human Capital Management and refer to all aspects of employee management within an organization. HCM is critical for any organization because employees keep the business running. The importance of HRM and HCM grew over the last centuries as developed countries transitioned from product-based to service-based organizations. Organizations realized that a great HRM strategy correlates to organizational success, which increased HRM and HCM popularity.
What is HCM?
Human capital management is a holistic set of practices and tools used for employee recruitment, management, development, and compensation. HCM is an approach that views employees as assets to be invested in and managed to maximize their business value.
HCM Automation and Software’s also refers to a set of tools and technologies used by businesses to digitize the process of hiring, governance, and advancement of their workforces as well as planning and budgeting of the financial side of managing the workforce.
As the world we know is extremely fast paced and the dynamics are changing constantly which requires businesses to have agility in the processes to incorporate changes, revise plans, change financial goals and reformulate strategies. This is where HCM software’s comes into play.
Why is HCM Important?
The importance of talent management and robust HCM strategies cannot be overstated in the digital age. HCM assists your organization in hiring the best people. This will keep you from hiring employees who are not a good fit for your company. Human capital management is crucial in:
- Recruiting new employees
- Employee onboarding
- Employee skill enhancement
- Employee retention
- Planning and Budgeting of salaries & benefits
Let us discuss these topics individually to comprehend the significance of Human capital Management.
1. Recruiting New Employees
Recruiting employees for your company is more complex than you might think. In times of low unemployment, finding the right person for the job can be difficult. What can help an employer stand out from the crowd? Use multiple channels to promote your job openings (your website, LinkedIn, Facebook, job database, employee referrals, online ads) to maximize your reach and attract more (and better) candidates.
2. Employee Onboarding
Making new employees feel welcome at your company is the goal of onboarding. With a good onboarding process, you can increase employee involvement and motivation. Make a checklist of everything you need to do before bringing on a new employee. Who gives the new employee a tour of the office, and how does your new hire submit expenses? Everything must fall in place.
3. Employee Skill Enhancement
There are various methods for improving your employees’ skills. Growing within an organization is one of them.
4. Employee Retention
Retaining talent is critical to ensuring your organization’s future growth. You can accomplish employee retention by keeping them motivated and happy.
5. Planning and Budgeting of Salaries & Benefits
Employees being one of the biggest assets of the company also share the major portion of the cost that an organization incurs to run the business. This makes it extremely important to have a processe that can accurately help to budget & forecast salary, benefits, headcount and FTE calculation
Some other Benefits of HCM Include:
● Increased productivity
Human capital management software can help streamline and digitize many HR workflows and processes, making everyone’s job easier.
● Endorse Data Driven Choices
Systems that standardize employee data, automate insights, and provide extensive planning and predictive analytics capabilities can assist you in making more timely, evidence-based HR decisions.
● Encourage and Engage Employees
By offering a personalized employee experience and cutting-edge tools like virtual employee assistants, you can keep workers engaged and motivated, lowering absences and losses.
● Information Integration
Information is visible to everyone in the organization involved in the process, a good example of headcount and salary planning via reports and analytics.
● Elimination of Information Silos
Due to automation, people work on the system instead of spreadsheets, this help to generate an environment which has one single source of truth.
By encouraging participation and capturing reasons stake holders have the in different processes, this encourages collaboration and clear reason behind thought process of the participants, this eliminates unnecessary attritions between different departments and speed up things.
How does VIZIO’s HCM Planning Solution help?
At VIZIO, we have a highly flexible, agile, and incorporated HCM Planning solution that includes all key planning activities for achieving your headcount, benefits, and salary planning goals in a single application.
Our solution is entirely driver-based and is built on SAP planning platforms such as BPC Embedded and SAP Analytics Cloud, assisting you in achieving your in-year and multi-year planning goals. Its integrated driver and assumption capabilities allow you to change the planning parameters to achieve the desired output within the planning solution.
With the click of a button, you can now generate accurate Headcount, Salary, and Benefits metrics. Plan different scenarios by creating multiple data streams using a What-If Analysis.
How does VIZIO’s HCM Planning Solution help?
- Driver and assumption based planning process
- Workflow Driven
- Built in inflation calculator
- Built in benefits calculation using benefits drivers
- File interface to load base data
- Integration with OPEX
- Complete visibility of occupied and vacant positions
- Ability to add new jobs on the fly to augment the planning process
Human capital management is a complicated subject. It does, however, rely on viewing human capital as an intangible asset. The truth is that many businesses unconsciously undervalue this asset to their detriment.
Excellent HR software can highlight the ‘management’ element of human capital management for long-term success. It also uses all available resources, keeps them up to date, and contributes to your strategic and prolonged success. If you want to collaborate with human capital, you must do it accurately.
We know every business is different and that’s why we believe in a personalized demo for each business. Reach out to our experts to get a free personalized demo for HCM Planning.