Human capital is one of the essential resources an organization needs to manage and utilize to achieve its organizational goals. Whether a multinational company with thousands of employees or a small enterprise with few employees, proper human capital management (HCM) plays an important role in an organization’s continuity and growth.
Regarding human capital management (HCM), several HCM (Human Capital Management) solutions are available on the market. Despite each of these HCM solutions claiming to streamline all HR processes efficiently, you might need help to choose one that best suits your organizational needs. So, to help you figure out the right HCM solution, we will go through the ten must-have features in modern HCM solutions in this blog.
Importance of (Human Capital Management) HCM Solutions
In simple words, HCM (Human Capital Management) solutions are softwares designed to manage an organization’s workforce efficiently and effectively. These solutions primarily offer tools and features for simplifying the entire organizational HR process.
So, why do you need an HCM solution, and why is it important? One of the reasons for this is that an efficient HCM solution can take care of all aspects of organizational workforce management, from hiring to retirement. Besides this, here are some other reasons that highlight the importance of HCM solutions:
- Performance Management
- Compliance and risk management
- Enhancement of Employee Efficiency
- Workforce planning and development
10 Must-Have Features in a Modern HCM Solutions (Human Capital Management)
After discussing HCM solutions and their importance, we must focus on our main concern. This section will discuss some of the must-have features of modern HCM solutions. If you are considering an HCM solution for your organization, ensure you look for these features.
Core HR Functionality
An HCM solution is designed to streamline an organization’s HR process. Therefore, it must have core human resource functionality.
Our HCM solution primarily involves features such as employee records management, time and attendance tracking, payroll and tax management, and benefits administration.
Workforce Analytics and Insights
Analyzing the insights provided by such records is equally important to keeping records on workforce management. A modern HCM solution must be able to provide analytics and insights from the records it keeps.
These analytics and insights can help you determine key workforce issues, whether employee turnover rates or skill gaps.
Recruitment and onboarding
Recruitment and onboarding are among the most important steps where workforce management begins. Undoubtedly, this is also one of the most complex steps. A modern HCM solution should make the recruitment and onboarding process more accessible.
An efficient HCM solution should include applicant tracking, candidate screening, interview scheduling, and initial employee orientation.
Performance Management
One primary reason for high employee dissatisfaction and turnover rates is inappropriate performance evaluation. A modern HCM solution should offer proper performance management solutions to manage employees efficiently.
Proper performance management system includes features for goal setting, employee performance monitoring, evaluations, and succession planning.
Collaboration and communication
Another must-have feature in modern HCM solutions is the ability to collaborate and communicate within the HCM solution itself. While there might be an alternative channel for employees to contact HR, this feature makes communication easily accessible.
Our HCM solution can be highly beneficial for accessing information related to company policies, requesting time off, and communicating with HR. It saves time for both employees and HR, as it is a direct channel to communicate workforce-related issues.
Learning and development
In an ever-changing organizational scenario, it’s important to continuously manage the workforce’s learning and development—modern HCM solutions must-have tools for this.
The learning and development feature needs tools to create training programs, track the training, and report to respective personnel. These training sessions could be both behavioral and technical.
Employee Self-Service
An employee might require multiple pieces of information regarding his employment. This might include information regarding issues with payslips to leave entitlements. Responding to each of these requests in an organization with many employees can be a nightmare for HR.
A modern HCM solution should include a feature where employees can request and access general information anytime. This feature can help employees get information quickly and relieve HR’s workload.
Integration
An organization uses multiple software and solutions to carry out its organizational activities. This mainly includes business systems such as accounting and ERPs.
A modern HCM solution should integrate with an organization’s other business systems to carry out its operations. This helps to streamline processes and the data flow of other human resources-related activities.
Mobile Friendly
While this might not seem like a must-have feature, mobile-friendly HCM solutions are much needed today. Mobile device usage in workplaces is increasing daily.
Making HCM solutions mobile-friendly helps employees and managers access HR functions anywhere and anytime. This allows them to access information related to HR functions easily.
Security and Compliance
Employee data can be sensitive and one of the most valuable data of an organization. Thus, protecting it is of utmost importance. HCM solutions should ensure robust security measures to protect these sensitive data.
Measures such as data encryption and role-based access should be implemented to keep data safe. HCM solutions should ensure they comply with data protection laws.
Ensaan Technologies: Your HCM Software Provider in the GCC
Ensaan Technologies is a leading provider of innovative Human Capital Management (HCM) solutions in the GCC region, including UAE, KSA, and Qatar. We offer a comprehensive suite of HCM solutions designed to meet the needs of businesses of all sizes. Our flagship HCM solutions include Adrenalin and TalentOZ.
Conclusion
HCM solutions are an integral part of an organization’s ability to efficiently and effectively manage its workforce. From performance management to workforce planning and development, an efficient HCM solution helps to manage human capital to drive organizational success properly.
You will need to consider several features in a modern HCM solution. While looking for an HCM solution, you’ll need to consider whether it has core HR functionality, performance management, and integration features. In addition, the security and compliance measures it adopts to ensure the safety of your employee data are also equally important.
For HCM solutions that best suit your organization, consider the innovative HR solution software from Ensaan Technologies.
