Disparate human capital management (HCM) systems result in disjointed HR processes and fragmented employee information in files, spreadsheets and systems. When employee information is siloed in many different systems, it becomes difficult to access key information, generate reports, meet compliance obligations and ensure the accuracy of data. It also results in a lack of visibility and is an inefficient use of HR time and resources.
Nonetheless, an ADP global survey found that employers manage an average of 31 separate HR systems. There’s no need for organizations to continue this fragmented approach, which not only results in a poor user experience for administrators and employees but can also expose organizations to compliance risks, not to mention the loss of precious HR time and resources.
Fully integrated HCM systems available on the market today can help organizations simplify their complex web of disparate HR systems and provide tangible benefits to organizations and their employees. For organizations considering implementing a holistic approach to HCM, there are 12 essential functions such a system serves.
The 12 Components of an HCM System
Recruiting & Onboarding
Learning & Development
Benefits & Expenses
Leave & Absences
Time & Attendance
Rostering & Scheduling
A single platform replacing multiple systems centralizes employee data and processes and offers a fully integrated approach that incorporates talent acquisition, talent management, learning management and workforce management capabilities.
Why a Fully integrated HCM Is a Smart Move
There are myriad benefits to having one end-to-end HCM system:
- Robust recruiting data. Capture resume information and integrate it within both the talent profile and core HR once a candidate accepts a new position.
- Essential information at a glance. Each employee’s talent profile needs to show learning achievements, certifications and compliance status as well as performance, 360 feedback and compensation. Integrating learning and talent strategies with workforce management communicates to employees that learning and development are central to their everyday workflow.
- Accurate performance assessment. Performance processes must include updated learning and development completions and goals as well as development plans and assessment of current skills and knowledge.
- Forward planning for pipeline development. Succession plans must leverage performance and learning data to allow objective comparisons of nominees. As the Human Capital Institute states, “You may have the talent in place to meet your operational needs today, but what about tomorrow? Succession planning is a vital exercise to help your company determine critical roles, distinguish what skills will be needed to sustain them in the future, and then identify suitable candidates to develop to take over those positions.” Integrated HCM provides the long-term view required for succession planning and organizational continuity.
- Support with scheduling. Rostering includes confirmation that an employee has the correct certifications and compliance requirements before being scheduled for a specific job or new position.
- Increased learning and development focus. An integrated HCM system encourages constant learning and skills development and provides the resources and tools required to impact workers.
Do Employees Benefit?
A holistic HCM system that incorporates learning improves the experience of today’s workforce while also preparing them for the demands of the future. By providing ongoing learning and development, employees see both where they want to go and a path for how to get there.
Better Talent Development Outcomes
A Pew Research Center survey on “The State of American Jobs” found that “87% of workers believe it will be essential for them to get training and develop new job skills throughout their work life in order to keep up with changes in the workplace.”
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