In today’s competitive market ecosystem, it can be difficult to maintain a productive and motivated workforce. As companies grow and evolve, they run the risk of overextending their HR departments, creating a chaotic and unpredictable workplace. Human Capital Management (HCM) systems leverage digital technology to improve employee satisfaction and productivity.
What is HCM Human Capital Management Software?
Human Capital Management Software, is a new digital solution designed to improve the strategies and operations of Human Resource (HR) professionals and managers.
HCM solutions such as Zoho People allow HR to manage onboarding, workforce planning, attendance tracking, and offer a myriad of other capabilities like performance appraisal. Any company implementing HCM software solutions, if done well, can expect an increase in productivity, retention rates, and employee engagement.
What is the difference between GCH and GRH software?
The difference between human capital management (HCM) and human resource management (HRM) lies in the roles they perform. HRM is a set of strategies based on hiring and managing employees, while HCM aims to increase the value of human capital and employee satisfaction.
A human resource management software solution revolves around day-to-day HR activities, while a human capital management solution goes deeper and aims to maximize the return on investment (ROI) of the workforce. ‘a company.
Who uses the GCH software?
The main users of GCH software are companies wishing to enhance their human capital. Companies that implement this software in their workplace operations include Apple, IBM, Toyota, AT&T, Adobe, and Google.
Even though GCH solutions are mainly used by companies with more than 1000 employees, they are also advantageous for companies that work with smaller teams. A company with 20 employees can benefit from HCM systems just like a multinational. If you are unsure whether a HCM solution is the best choice for you or not, you can consult Zoho experts .
When do you need GCH software?
The adoption of GCH software becomes necessary when a company begins to carry out expansion operations. The larger a business grows, the more useful workforce management software becomes.
For example, a two-employee startup that suddenly has 20 employees under its belt cannot expect its previous management strategies to work the same way. Additionally, human resources needs and challenges increase exponentially as new employees are introduced into the business.
What are the benefits of GCH software?
Advantages of the GCH software :
- Increase employee satisfaction
- Evaluate employee performance
- Create training and development opportunities
- Better time management
- Compliance with rules and regulations
- Increased data security
1. Improve employee satisfaction
Employee retention is one of the biggest challenges HR faces in the hiring market. In fact, the Microsoft 2021 World Trend Index report acknowledges that more than a third of employees are considering leaving or changing careers ( source ).
Attracting and retaining talented employees is becoming a higher priority, and improving the quality of employee engagement with their jobs is the primary workforce retention strategy.
GCH software can provide tools to monitor employee engagement. Tools such as one-time surveys and employee recognition programs can help HR better understand worker needs. Additionally, benefit programs can be put in place to help employees improve their abilities, while adding to their personal skills.
Retention of top performers can also be enhanced by HCM systems such as Zoho People . Employee data can be monitored by HCM solutions to look for signs of employee dissatisfaction, giving companies a chance to improve the situation before moving on.
2. Assess employee performance
The data collection and analysis capabilities of HCM software allow a company to perform comprehensive analysis of all employee data. Organizations can use HCM solutions to run productivity analysis of all areas of their business , while being able to access detailed information about a particular department, team or individual.
Using analyzed data enables business leaders to design new workforce planning strategies and make more accurate decisions about critical processes like succession planning. Likewise, absence management can be enhanced with the attendance and absence tracking feature in the software.
3. Create training and development opportunities
Growth opportunities are very important for today’s employees. If workers are not engaged, they will start to become dissatisfied, which will eventually lead to their resignation. Training and development options are a great way to incentivize workers to be more engaged in their work and increase the value of a company’s human capital.
A HCM solution can be used to provide employees with opportunities to develop their personal and professional skills. It can provide workers with information on opportunities for improvement while tracking the individual performance of each employee. Some GCH systems also come with apps designed to access the software from smart devices.
4. Better data and time management
HCM software is an integrated solution for many underlying business processes. Adopting these can help automate tasks and organize data related to employees and their productivity. Relieving HR teams of recurring manual processes allows them to improve workforce growth and address other issues.
If a company does not implement HCM software, all employee data is likely stored in spreadsheet software. Performance evaluations are probably kept by managers without a centralized database.
GCH technology allows all this information to be accessible from the same place and to be updated automatically. This approach enables a faster and more accurate information ecosystem, which results in more efficient use of time and resources. Tasks like compensation management become much easier with the use of a centralized database.
GCH systems are not only useful for HR professionals, but also for IT teams. There is no need to build, update, and maintain proprietary on-premises software or other IT infrastructure, as GCH software can perform these tasks. Software updates and enhancements are provided by software vendors, without a company needing to use its resources to manage expansion
6. Compliance with rules and regulations
Municipal, provincial and federal governments regularly change public policies, which can affect how HR activities operate. Due to the cloud-based nature of GCH systems, updates can be deployed instantly and seamlessly. This helps companies that adopt HCM solutions stay compliant with the law simply by implementing the software.
7. Increase data security
Data is a company’s most valuable asset. They must therefore be handled with care. Security should be a top concern for any business that decides to digitize its operations. When working with HCM systems, individuals within a company are only allowed to access the data that is relevant to them in order to keep the information away from prying eyes.
Sensitive information, such as employee social insurance numbers, is stored securely in GCH solutions. While a CEO may be able to access pay and performance information for everyone in the company, individual managers can only review data related to their departments.
Modern GCH software is equipped with dynamic dashboards and other data visualization tools. Executive dashboards provide managers with essential workforce information that they can use to identify developing trends in the workplace and make more informed decisions.
How to choose the best HCM software?
To choose the best HCM software, there are 4 variables to assess and consider:
Digital solutions are good as long as they are useful. If software does not provide an intuitive user experience, all the benefits it offers will be obsolete. A HCM solution can claim to have great functionality, but if the interface is so complex that employees find it difficult to use it, that becomes a disadvantage rather than an advantage.
The best HCM solutions offer constant updates to improve usability. These include UI changes to keep up with design trends and access to new features. Additionally, technical support should be readily available to help implement new features and benefits.
The right choice of HCM software may be limited to the features it offers to the business. Suppliers can choose to innovate in different ways, but buyers should still look for the following essential capabilities:
- Workforce management
- Workforce management
- Performance Management
- Training and development
- A simplified employee experience
- Compensation management
- Workforce analysis
GCH software must be scalable. Although they can manage most of a company’s information for them, the storage space can be easily increased or decreased at the request of the company. Modules can be activated as business needs change. Custom modules can be configured.
When managing expansion operations, physical and digital storage can be a major concern. The cloud-based nature of HCM solutions can lighten the weight and space occupied by information by making it independent of any physical document or database.
It is extremely important to ensure that the HCM solution chosen can integrate with other business-critical systems. This is essential not only for GCH systems, but also for any other software solution that can be implemented by a company. Applications that should be able to work with HCM systems include ERP systems and ATS, or recruiting software.
Computer support is usually able to answer questions regarding compatibility issues, but any other questions can also be answered by the software vendors. When acquiring a new GCH solution, buyers should consult the vendor’s list of out-of-the-box integrations, as it can provide useful information on what can be achieved by that particular software.
Does your company need HCM software? Zoho People is a Zoho suite app that enables businesses of all sizes to manage, record, and monitor the behavior of their human capital. If you have any questions about Zoho People, feel free to contact our Zoho software experts .