What is Human Capital Management
Human Capital Management (HCM) is a set of practices designed to oversee human resources within organizations. It addresses various aspects related to employees, including recruitment, benefits administration, payroll management, performance management, talent management, training, and overall human capital strategy.
What is HCM Software
HCM Software is a specialized type of software designed for handling, integrating, and enhancing HR processes. Utilizing HCM software allows organizations to automate numerous routine tasks, saving time for HR professionals while improving the precision and consistency of activities associated with managing the entire workforce.
What Areas Does Human Capital Management Software Assist in Managing?
Recruitment and Talent Acquisition:
Human Capital Management (HCM) software provides tools to streamline the recruitment process. It covers everything from creating job postings and posting them to handling candidate applications, assessing candidates, and conducting interviews.
Employee Onboarding:
HCM software supports the onboarding and integration of new employees within the organization. It utilizes automated task sequences assigned to employees on subsequent days. These tasks include document completion and familiarization with company policies.
Performance Management:
HCM software includes features for evaluating and managing employee performance. This encompasses goal setting, providing feedback, and conducting performance assessments.
Learning and Development:
HCMS systems offer modules that support employee learning and skill development. They aid in career advancement and skill enhancement.
Payroll Management and Benefits Administration:
Dedicated payroll management solutions can be used to manage compensation, benefits, and ensure tax compliance. However, HCM software also supports these functions.
Time and Attendance Tracking:
HCM solutions include tools for monitoring employee working hours, managing leave requests, and tracking absences.
Succession Planning:
These unique management tools serve strategic functions that are not typically found in other HR systems. They help identify and develop future leaders within the organization.
Analytics:
While data analysis and reporting capabilities are not considered core HR functions, they are essential for efficient management. Predictive analytics assist organizations in making data-driven decisions regarding human resources.
Key Features of HCM Software Solutions
There is a wide range of software options available, and the selection continues to expand, especially since providers have started offering it as a SaaS (Software-as-a-Service) option with various types of licenses and subscriptions.
Most of them are scalable and easily configurable, but finding the right solution that will satisfy HR leaders and streamline business processes in the company is not that easy.
Before diving into the offerings of different companies, remember the key features of HCM solutions. Let’s categorize them into several areas:
Core HR and Workforce Management:
- Employee database containing personal employee data, employment history, and contact details of each team member.
- Organizational chart that allows for creating and visualizing the company’s hierarchy and organizational structure.
Recruitment, Candidate Tracking, Talent Management:
- Tools for posting job offers and managing them.
- Applicant Tracking System (ATS) for tracking and managing candidate applications.
- Communication tools, e.g., for scheduling interviews.
Employee Onboarding:
- Tools that facilitate smooth adaptation, such as automated workflows that help new employees gradually familiarize themselves with company procedures, documentation, and job tasks over time.
Employee Self-Service:
- Self-service functions for employees that enable them to update personal information, request time off, and access company policies and documents.
- Self-service functions for managers that allow them to efficiently perform HR-related tasks, such as approving leave requests and evaluating employees.
Time and Attendance Management:
- Tools for tracking employee work hours, attendance, and overtime.
- Tools for managing leaves, including handling employee requests for vacation, sick leave, and other types of absences.
Performance Management:
- Features related to goal setting and task assignment.
- Options for employee evaluation, including conducting regular performance reviews, such as 360-degree assessments.
- Modules for analyzing employee performance.
Training and Development:
- A platform for online courses, training modules, and skills assessments.
- Tools for monitoring employee skills and identifying competency gaps.
- Tools for managing employee certifications and licenses.
Compensation Management and Benefits Management:
- Tools for creating and managing employee compensation structures and adjusting salaries.
- Tools for administering employee benefits, such as health insurance, retirement plans, and other perks.
- Tools supporting employee well-being.
Human Resources Analytics and Reporting:
- Tools for creating reports and dashboards to gain insights into HR metrics and trends.
- Tools for ensuring compliance with labor laws and regulations.
Employee Engagement:
- Tools for conducting employee surveys and assessments to measure satisfaction and engagement.
- Tools for collecting feedback and expressing opinions, including anonymous reporting of issues.
Data Security:
- Encryption and access control tools in compliance with labor laws and related regulations.
In addition to these features, the best HCM software also offers:
- Seamless integrations with other systems, such as expense management or financial management, as well as popular communication tools.
- Mobile accessibility.
- Automation of manual tasks, streamlining the work of HR leaders and reducing the risk of errors.
- AI support and the use of Machine Learning for predictive analysis.
- Multilingual support.
Key Benefits of HCM Software
Let’s summarize the benefits of using HCM software so that nothing is overlooked:
✅ Streamlined HR processes through automation and simplification of HR tasks (absence management, payroll processing etc.).
✅ Effective talent acquisition and talent management (supporting the entire employee lifecycle).
✅ Maintaining high employee engagement and creating a positive work environment.
✅ Efficient workforce planning and making strategic HR decisions based on data, not intuition.
✅ Compliance with legal regulations.
✅ Reducing administrative costs and maintaining operational efficiency.
✅ Centralized access to employee records in a single database.
✅ Support for multilingual, multicultural teams, and those operating globally.
✅ Flexible processes and scalability in response to the growing needs of the company.
✅ Improved internal communication across HR teams, departments, divisions, and locations.
✅ Mobile accessibility and inclusivity of services for employees at all levels.
✅ Ensuring operational fluidity through integration capabilities with various tools.
HCM software can vary in scope and complexity, from basic HR functions to advanced, integrated systems that provide a comprehensive suite of HR services. When should you choose a simpler solution, and when should you opt for an “all-in-one” system to manage processes? Let’s go through some tips on how to select a solution for your company.
How to Choose the Right HCM Software
Here’s a list of tips to help you choose the best HCM software:
Assess Your Organization’s Needs:
Before you start browsing vendor offers and checking their references, begin by evaluating your organization’s specific requirements for HCM software. Consider factors such as your company’s size, the industry you operate in, the types of HR processes currently in place, and your future development plans.
Evaluate the Software’s Development Potential:
Look for a solution that is scalable, flexible, and offers integration options. Consider your current and future employee count to ensure the software can accommodate organizational growth. Ensure that the chosen HCM system will be continually developed by the provider. Moreover, check if it can be expanded with additional external HR tools.
Conduct a Cost-Benefit Analysis:
Assess the total cost of ownership, including initial costs, subscription fees, implementation, and ongoing maintenance. Compare these against the expected benefits and return on investment, and position this expenditure within your business strategy. Make sure that such an investment aligns with your budget, and carefully consider whether the investment will bring significant value to your organization.
Gather Feedback from Your Team:
The HR department should have input in evaluating the selected software, as HR teams will be the primary end-users. Team feedback on the functionalities and capabilities of the HCM solution will help you make the best choice.
Verify the Vendor’s Credibility:
Research the vendor’s reputation in the market, including customer reviews and industry achievements. Contact other companies for references and honest opinions. Purchasing an HCM system is a long-term investment, so it’s worth conducting thorough research in this area.
Request a Demo or Trial Period:
Take advantage of a demo presentation or a free trial period to get better acquainted with the chosen HCM system. This hands-on experience will be more beneficial than viewing promotional materials from a sales representative.
Common Pitfalls to Avoid When Choosing HCM Software
If you want to avoid the regretful thought, ‘If only I had known,’ after selecting an HCM solution, pay close attention to this part of the article. Be mindful of these pitfalls during your software selection journey:
Interface Oversight:
You’ve made your purchase, but failed to scrutinize the interface, leading to a disappointing user experience. An interface with draining colors, illegible fonts, bothersome system sounds, and no customization can be a significant hindrance. Always leverage the system demo option to evaluate its visual and functional appeal before buying.
Integration Limitations:
Post-purchase, you might find that the software lacks integration options with your existing tools, leading to operational inefficiencies and workflow disruptions. Worse still, if the software doesn’t have a roadmap for future development or integration, it risks becoming obsolete, leaving you unsupported. Seek software that offers robust integration capabilities and demonstrates potential for continual development and market viability.
Data Security Neglect:
You’ve bought the HCM software, but now face a critical data leak issue. Employee data breaches are a serious concern you want to avoid. Opt for vendors with proven track records in data security, ensuring their solutions meet ISO standards and have necessary certifications.
Lack of Support and Training:
After making your purchase, you find yourself alone, struggling with the learning curve and lacking support. Errors due to inadequate training or support can cause immense frustration and financial losses. Choose products that come with comprehensive after-sales care, including an extensive library of tutorials (preferably in video format, for ease of learning). Select a vendor who provides support throughout both the implementation and usage phases.
Unclear Product Understanding:
You’ve made a purchase, but you’re not exactly sure what you’ve bought. It’s crucial to precisely define your needs and verify whether the chosen solutions genuinely offer functionalities that align with human capital management best practices.
Before you click the ‘Buy!’ button and sign a contract with a vendor, remember this list! It will guide you in making an informed and effective decision when choosing your HCM software.
7 Top HCM Software Solutions
And now, some detailed information about selected HCM software providers.
Movo
Movo is an innovative Human Capital Management (HCM) platform, designed specifically for today’s large frontline workforce. It combines the best mobile employee experiences, with advanced AI-powered features. This makes Movo a perfect, comprehensive solution for improving workforce management and HR processes, particularly for large, hybrid, remote, or geographically distributed workforces.
Key Features:
Workforce Automation: Features a mobile supervisor portal, intelligent employee scheduling, adjustable attendance rules, independent employer functions, AI-driven labor forecasting, mobile timekeeping, and advanced features to prevent time fraud.
HR Automation: Offers an internal talent marketplace, automated credential verification, algorithmic skill matching, and a modern mobile recruitment and onboarding experience.
Employee Engagement: Provides a daily-use mobile app, secure chat and communication, social networking features, gamification, an automated training management system, and technology for early wage access.
Integration Capabilities: Movo integrates smoothly with various technical partners, enhancing its capabilities and reach.
Benefits:
Increased Productivity: Optimizes workforce scheduling and tracks employee attendance efficiently.
Improved Employee Experience: Offers a mobile app for easy schedule management and communication.
Cost Savings: Ensures continuous visibility of labor costs.
Compliance Support: Helps in following labor laws and policies.
Data-Driven Decisions: Employs AI for forecasting and analysis.
Pricing Options and Accessibility for Demo Orders:
🟢 Pricing: Available upon request.
🟢 Free Demo: Experience Movo’s platform through a live demo.
Movo aims to transform work environments and career paths for millions of frontline workers, benefiting both the employees and their employers. Using AI algorithms, Movo improves frontline worker productivity, speeds up hiring, prevents time abuse, and significantly lowers overtime costs.
While traditional HCM platforms are often 20-year-old solutions that employees hardly use, Movo offers a modern application that engages employees in real time unlike any other.
Oracle Cloud HCM
Oracle Cloud HCM is a comprehensive human capital management solution designed to cater to various HR processes.
Key Features:
Comprehensive Workforce Management: For safety-sensitive industries, including workforce health and safety monitoring and incident management.
Self-Service Compensation Charts: Allowing employees to manage their compensation details.
Profitability and Cost Management Dashboards: Providing insights into financial aspects of workforce management.
Mobile Accessibility: Offers a mobile app for managing HR tasks on the go.
Integration Capabilities: Compatible with a wide range of applications.
Global Reach: Designed to support businesses of various sizes and across different regions.
Pricing Options and Accessibility for Demo Orders:
🟡 Pricing: Starts from $13 per user per month for a minimum of 1000 employees.
🟡 Free Demo: Available for potential users to explore its features.
Oracle Cloud HCM aims to streamline HR processes, enhance employee experiences, and provide strategic insights into workforce management.
Workday HCM
Workday is a prominent Human Capital Management (HCM) software offering a comprehensive suite for managing various aspects of human resources (Human Resource Management), including employee experience, talent management, analytics, reporting, and payroll. Notably, Workday provides payroll services for the U.S., Canada, Australia, the UK, and France.
Key Features:
User Experience and Interface Design: Known for its intuitive and user-friendly design.
Machine Learning for Talent Management: Uses advanced technology for skills analysis and management programs.
Customizable Process Flows: Allows organizations to tailor their HR workflows.
Workforce Planning Tools: Facilitates strategic planning for workforce development.
Intelligent Automation: Incorporates automation to streamline HR processes.
Integration: Offers connectivity with over 600 tools and additional integration capabilities via API.
Pricing Options and Accessibility for Demo Orders:
🔵 Pricing: Available upon request.
🔵 Free Demo: Provided for potential users to experience its features.
Workday is designed to help organizations manage their human resources efficiently, with a focus on enhancing employee experiences and leveraging technology for optimal HR management.
BambooHR
BambooHR is a versatile and user-friendly HCM software, offering a range of features to streamline HR processes.
Key Features:
Comprehensive HR Suite: Manages everything from hiring to retirement.
Payroll Management: Features an add-on payroll solution with automatic data flow and comprehensive reporting.
Time and Benefits Management: Simplifies tracking and administration.
Hiring and Onboarding: Streamlines the recruitment process.
HR Data and Reporting: Offers robust data analysis and reporting capabilities.
Employee Experience and Performance Management: Enhances employee engagement and tracks performance.
Extensive Integrations: Over 125 integrations with various business tools.
Global Reach: Serves customers in over 150 countries.
Security: Provides a secure and encrypted environment for data.
Pricing Options and Accessibility for Demo Orders:
🟠 Pricing: Available upon request.
🟠 Free Trial: Available for users to explore its functionalities.
BambooHR is tailored for small and medium-sized businesses, aiming to make HR tasks more efficient and less time-consuming.
Deel
Deel is an innovative HCM software focusing on global workforce management.
Key Features:
Global Payroll Management: Offers international payroll services in over 150 countries.
PTO Tracking and Benefits Administration: Streamlines the management of time off and employee benefits.
Compliance: Ensures compliance with local laws and regulations in different countries.
User Interface: Provides a clean and intuitive web interface.
Customizable Reporting: Offers flexibility in reporting features.
24/7 Customer Support: Ensures continuous assistance for users.
Integration: Compatible with platforms like BambooHR, Quickbooks, and Workday.
Pricing Options and Accessibility for Demo Orders:
🟣 Pricing: Flat rate user pricing, with a free version available for businesses with up to 200 people.
🟣 Free Demo: Allows potential users to explore its features.
Deel is ideal for companies managing international teams, providing a comprehensive solution for global HR tasks.
Paycor
Paycor provides a wide-ranging HCM solution encompassing payroll, HR, talent management, workforce management, and benefits administration. Its platform is tailored for various industries, offering intuitive user interfaces, compliance management, and robust analytics to optimize HR operations and improve employee experiences.
Key Features:
Payroll Software: Efficient payroll processing across multiple jurisdictions.
HR Software: Centralizes employee tasks and documents.
Talent Management: Includes recruiting, onboarding, talent development, Learning Management System, and compensation planning.
Workforce Management: Time and attendance, scheduling software, and labor cost management.
Benefits Administration: Streamlines the benefits process and includes ACA reporting and workers’ compensation management.
Compliance Solutions: Provides solutions for compliance management in various areas.
Pricing Options and Accessibility for Demo Orders:
🟤 Pricing: Offers product bundles with pricing details available upon request.
🟤 Free Trial: Provides a 14-day free trial for select products.
Paycor is ideal for organizations needing comprehensive HR management with advanced reporting and talent management capabilities.
UKG
UKG’s technology supports teams, business goals, and employees well beyond the initial purchase. Their comprehensive HCM suite efficiently manages personnel data, handles robust payroll tasks, boosts scheduling efficiency, and helps attract, nurture, and grow talent.
Key Features:
Core HR & HR Service Delivery: Advanced tools for managing employee data, career paths, benefits, and other HR aspects.
Payroll: Payroll processing that addresses complex tax requirements and multiple jurisdictions.
Talent Management: Includes tools for recruitment, onboarding, talent development, and performance management.
Time & Attendance: Tracks employee work hours, attendance, and absences.
Scheduling: Simplifies work schedule creation, improving efficiency and employee satisfaction.
Compliance: Assists in meeting legal and regulatory requirements in HR and workforce management.
Reporting and Analytics: Advanced data analysis tools for better understanding and optimizing HR operations.
Pricing Options and Accessibility for Demo Orders:
🔴 Pricing: Available upon request.
🔴 Free Trial: Provided for potential users to experience its features.
UKG’s solutions are especially suited for enterprise organizations prioritizing long-term employee engagement and success.
Final Thoughts and FAQs on Buying HCM Software
Let’s summarize briefly: Purchasing Human Capital Management (HCM) software is an important decision for any organization. It can streamline HR processes, improve workforce management, and enhance the overall employee experience.
What should you specifically remember before taking action?
- Ensure that the HCM software aligns with your HR strategy and goals.
- Choose software that can grow with your organization.
- A user-friendly interface and readily available supplier support, including training and a dedicated support department, are extremely important.
- Ensure that the software provides data security and compliance with regulations.
- Check if the software will integrate seamlessly with other tools.
- Look for simple, inclusive, and team-tailored solutions.
- Evaluate the total cost of ownership, consider ROI in terms of productivity and efficiency gains, and then set your budget for the purchase.
- Ask your team for feedback on the solution before investing in it.
And now a few questions you might still be looking for answers to.
Are HCM software solutions secure?
Every provider will assure you of the security of their solutions. However, before moving on to the next points, consider these important aspects:
- Choose HCM software from a supplier who truly cares about security and can boast of meeting ISO standards, GDPR compliance, and adaptation to data protection laws.
- Make sure the software regularly receives updates and security patches.
- Check if the software encrypts data both at rest and in transit to protect sensitive employee information.
- The software should have robust access control mechanisms to allow users of different access levels to be admitted to different data ranges.
- Ensure that the provider offers appropriate data backup and recovery procedures in case of failure.
How to prepare for a software demo session?
Here are some steps and questions to consider:
✅ Clearly define the problems the software is to solve and what your main requirements are.
✅ Engage people who will be using the software. Let them create their own list of questions for the supplier, which you can discuss during the demo session.
✅ Familiarize yourself with the supplier’s offer, list the areas in the company that it can help you improve. If an area has not been mentioned, ask about it during the session.
✅ Prepare the final list of questions you will ask during the presentation, including:
- Functionality: How does the software meet the specific needs of the company? How does it handle… [here: name a task or process]?
- Customization and Scalability: Can the software be customized to the company’s unique processes? How does scaling work as the organization grows?
- Integration Capabilities: How well does it integrate with our existing systems? Is there an additional cost?
- User Experience: What does the interface look like that employees will use? Is it different from the panel for HR managers?
- Support and Training: What kind of customer support and training will the company receive? Is submitting inquiries an additional cost?
- Pricing Structure: What is the pricing model? Are there additional costs for updates, support, or extra features?
- Security and Compliance: How is the software compliant with current regulations and laws? Does the software adapt to legal regulations in… [here: name the country you are interested in]?
- Implementation and Onboarding: What does the implementation process look like? Will the company receive 24/7 support?
The demo session is a great opportunity for you to not only get information about the software’s features but also to evaluate the supplier itself, their customer service, and sales approach.
