Remember when the human resource function within most companies was largely administrative? Josh Bersin paints the picture perfectly when he describes traditional HR as being “focused on service delivery, staying efficient and reducing cost and headcount.”[i] But, times are changing. HR’s realm of responsibility – and the impact it has on the business at large – continues to grow. Advanced practitioners need robust technology that can keep up with their ever-growing list of expectations.
The ideal HCM solution contains five applications: talent acquisition, time and labor management, payroll, talent management, and HR management. Each has its own functions, which when combined into one application, represents the total package.
According to the National Business Research Institute, one poor hiring decision could cost your company between $25,000 and $300,000, depending on your industry. A single-platform HCM solution with talent acquisition functions makes it easier to hire the right people while simplifying other recruiting and hiring processes. Tools include:
- candidate tracker, which allows you to monitor those candidates with potential but have not yet applied for a position
- applicant tracker, which shortens the process of moving applicants through to onboarding
- tax credits, which secures available tax credits
- background checks, which verify whether applicants are qualified
The ideal system also has onboarding and E-Verify® tools – plus talent acquisition analytics – to help you streamline your hiring processes, comply with government regulations and gain insight into recruiting productivity.
Time and labor management
The Fair Labor Standards Act does not mandate that employers use a specific timekeeping system to record hours worked, but it does require that employers use a system that is accurate and complete. Therefore, a time and labor management suite is an important addition to any HCM solution.
System capabilities should include:
- flexible timekeeping, such as web-based time clock, hardware terminal or online time sheets
- functionality that combats time theft by eliminating “buddy punching”
- a convenient platform for employees to manage PTO requests
- integrates time and labor with payroll processes to control labor costs and eliminate errors caused by double entry
Payroll is perhaps the most critical of all five processes to your employees because it directly concerns their paychecks. Payroll is a broad and far-reaching process with serious compliance implications with regards to wages, benefits and taxes. A single-database HCM solution that simplifies payroll processes and keeps you in compliance is vital to keeping employees – and the government – happy. Some essential tools are:
- online payroll processing
- payroll tax management
- wage garnishment management
- expense management
- payroll analytics
- check reconciliation
- mapped general ledger reports for import into your accounting software
Organizations need the best talent in order to thrive in today’s ultra-competitive and increasingly complex global economy. Managing talent is critical to achieving a competitive edge, but it’s also a challenging undertaking that involves several key elements, including developing, engaging and rewarding talent to enhance performance and boost retention.
Equipped with talent management tools – including performance management, employee self-service and compensation budgeting – a five-tiered all-in-one HCM solution plays a powerful role in growing talent and your business.
The most comprehensive of the five applications, human resource management is the function that deals with your organization’s most valued asset: the people working there. All activities impacting people fall under HR management, including hiring, compensation, performance management, safety, wellness, organizational development, benefits, administration, training, communication and employee motivation. A well-rounded solution will have the tools you need to optimize those processes, including:
- employee and manager self-service
- surveys for soliciting feedback
- enhanced ACA
- COBRA administration
Some HCM solutions take a fractured approach, partially catering to organizational needs. The ideal solution, however, takes a united approach, satisfying all the key elements of human capital management.
Tags: Amy Double, HCM Solution, HR Management, payroll, talent acquisition, Talent Management, Time and Labor Management
Posted in Blog, Employee Engagement, Featured, HR Management, Payroll, Talent Acquisition, Talent Management