Human Resources Technology: Adopting the Human Capital Management (HCM)

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Human resource technology is a complete umbrella of terms for software and in relation with hardware terms that will be automating the human resource process of the enterprises. It includes various functionalities such as payroll operation and compensation, talent acquisition and management and complete overview of the workforce along with in-depth analytics.  Human resources technology is aimed to provide an end to end solution for human resource operational demands and requirements to reduce the time consumed during the process.  Though the current innovative technology offers varied solutions for operational barriers, HR technology has taken the queue from the same innovation. HR over the last few years has seen a rapid rise in the adoption of technology; core HR technology systems from Oracle and SAP are not only solving the HR tech requirements but also compensating the need of scalability in innovation. Many of the enterprises are adopting the second generation of HR technology and migrating the on-premises systems need to be adapted to form a new cloud platform. It’s also including the SaaS instead of the on-premise technology to improve the technology transformation. Moving the complete HR to a digital channel will help to expand the human resource functions.  However, the adoption of cloud-based HR technology will depend on the outsourcing vendors.

HCM other Than HRMS

The core HR technology systems have always been used combined with different terms that can be applied to both the HRIS (Human Resource Information System) and HRMS (Human Resource Management System) but the HCM is decidedly replacing both the terms in the recent years. HRIS is based on the employee’s information storage framework while the HRMS was based on the complete HR function management. HCM is a combined version of both HRMS and HRIS with more integration and better management.  

Human Capital Management (HCM)

Human Capital Management (HCM) is a bucket term used by the variety of terms for the business functions that will be treating its employees as an asset that can be objectively checked and can be managed by the other assets. They can channelize like any other resource-money and capital equipment. It gives a complete overview of the ideal resource and demand for any new resource.  HCM automates the process of development with resource integration that combines the core HR and talent management for the system. HCM can even induct various discrete subsystems that include recruitment, performance, learning, succession planning, compensation management, and compliance.  Many of the HR technology vendors specialize in the dedicated systems for the specific aspect of HCM.

Payroll Management

Human Capital Management (HCM) is more organized tracking of all the employee wages, salaries and also withholding the taxes and creating the complete framework for the deductions. With a need for HR technology that can completely solve the compensations complexity, offering close end to end solutions. Cloud-based HR technology outsourcing the vendors provide complete payroll services and also the key components of the suite include digital HR offering or even the providers offering a standalone service. The challenges faced by the HRs today is to deal with the payroll complexity of manual administering different wages, salaries, and taxes based on the multiple remotely located human resources. The taxation of any given corporate workforce has to go through a string of levels wherein each differs.  Some of the enterprises are currently using the attendance software that just keeps track over the employee hours, keeps records of wages and salaries paid.  Compensation management is directly related to payroll management with a niche of focus best pay rates to attract various employees and also rewarding the improved performance. It’s also one of the talent management suites but can become a part of payroll management bringing transparency in compensation provided.

Talent Management

 Talent Management is the process of recruiting, developing, evaluating and compensating the right candidate and employee.   It’s often managed as a separate application or a talent management software suite that consists of different integrated modules for the recruiting. Enterprises face an uphill task when it comes to recruiting a right talent from the group but each of the steps requires a thorough evaluation based on the company culture and also requirements based on the position and job profile. Learning and development will be the underlying employee growth path and also stabilize the employee in the current job role. HR technology providers have actively invested in the talent management solutions that include talent acquisitions based on performance, the strategic process of finding and hiring the right kind of employees to achieve the enterprise’s goals.  When you are hiring for a group of posts and also the number of hiring’s quite high we have to invest in the technology to improve the management to improve the hiring process.  

Some of the popular talent management and acquisitions technology include:

Application Tracking System (ATS): Used to post a job opening on a corporate website or job board, screen the resources, and generate interview requests to the potential candidate by e-mail. Other features may include automated resume ranking, pre-screening questions and also the response tracking and multilingual capabilities.

Candidate Relationship Management: Allow the recruiter to maintain the pool of passive candidate that can be brought in for the consideration over the short notice.

Employee Assessment software: It assists the enterprises to decide whether the given candidate is suited for the position. It might include the skill matching, assessment based on the candidate profile, knowledge and personality traits.  Many of the other sources such as company website, social media profile of the website have become a major source of information on the given talent.

Conclusion

HR Technology steers the operational demands and administration process towards more refined benefit. The HCM is a complete dashboard that gives an overview of all the information required putting the complete benefits with information online.  As the digital transformation has picked up speed in the recent year’s HR technology has now transformed towards more employee functionality depending on the health insurance and other employee benefit provided.  Many of the HR technology vendors are selling the specialized software system that can incentivize based on the different performance parameters of the employees.  Though HR technology will be based on the dynamicity and requirements from both employees and employers, many of the current technology companies fail to understand the vertical requirements based on the benefits.

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