Human Capital Management in the 21st Century

06/01/2017 02:55 pm ET

Within most companies, human capital comprises between 50 and 60 percent of variable costs. However, this subject rarely receives adequate attention. Many companies still use archaic procedures that result in poorer workflow and more paper waste.

With better systems in place, several case studies have shown more than a 30 percent increase in sales per employee and more than a 40 percent profit increase for employers.

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Problems With Outdated HCM Systems

From recruiting to maintaining talent, human capital management systems have become outdated. Every employer needs to revisit their strategy to look for areas of improvement, and adding software is a must. These are some areas of deficiency in outdated systems:

  • Recruitment strategies do not account for the unique needs of younger generations.
  • Large companies with multiple systems lack integration between systems.
  • There is very little time to meet regulatory reporting requirements.
  • Staffing systems do not focus on employees' strengths and weaknesses.
  • Global businesses do not have optimized processes.

HCM Recruiting Software

Every HCM strategy starts with recruiting ideal employees. Today's software programs allow users to find ideal candidates for different positions based on specific criteria.

With applicant tracking systems, companies can develop job descriptions by collecting input from all involved parties.

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There are screening and sorting tools to filter out applicants who do not meet specific criteria, which cuts down on the amount of time spent combing through stacks of applications.

All of the data for different applicants is available on one convenient interface, and it can be accessed by all permitted parties at any time for status checks and updates.

Workforce Management Software

Too many companies focus only on onboarding new workers. By doing this, they fail to optimize their existing workforce. Long-term employees are valuable assets, and they become even more valuable when their skills are properly utilized.

Workforce management software helps employers identify which workers handle certain tasks better. It also helps them set up schedules to take advantage of a specific worker's most productive times.

They can build teams by putting employees who work well together on the same team or in the same department. With the software's tools, it is easy to perform all of these tasks quickly.

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Review Processes With Technology

Sorting through employee evaluations, financial statistics and workflow goals consumes a considerable amount of time from key employees or executives. Outdated but common methods cause large amounts of paper waste and utilization of space-consuming filing systems.

With a software program for tracking processes, executives and HR personnel can enjoy a complete view of evaluations, financial statistics and overall workflow. HCM software makes it easier to communicate with employees and share information with them.

It also makes the process of improving logistics simpler. Overall, everyone involved gains more value from the process.

For best results, companies should also utilize software to optimize internal tasks such as payroll and benefits. Software programs target these important areas with a single interface or integration capabilities between programs, which allows employers to maximize their workforce's capabilities and increase their profits.

Also, less time spent on HCM tasks means more time for key employees and executives to spend on high-yield tasks.

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