In today’s always-on business world, the value of efficiency has never been higher. Time is a nonrenewable resource, and lost time can equal lost productivity, output and eventually revenue. Organizations are under greater pressure than ever before to lower costs and increase productivity – while maintaining a high level of service.
That’s why HR leaders need to leverage a reliable human capital management (HCM) solution to streamline time-consuming administrative tasks. In the findings of a 2017 study by CareerBuilder, HR leaders whose operations were not fully automated said they lost 14 hours of productivity a week, on average. For 39 percent of those supervisors, things were even worse – at least 20 hours a week down the drain manually handling administrative work.
HCM solutions capable of eliminating such manual busywork have been available for some time, and an increasing number of organizations have adopted them. But you may still face skeptics in your organization questioning whether HCM software is worth the investment. For HR pros trying to build a business case to implement HR software for the first time, or to replace multiple disparate systems, here are five business benefits that will resonate with your executive team.
1. Winning the war for talent
Unemployment is the lowest it’s been in the past several decades, based on recent data from the Bureau of Labor Statistics. As noted by The Washington Post, economists call this “full employment” – there are more open jobs than there are unemployed people to take them.
This leads to an all-out war for talent. Organizations without an applicant tracking system may find themselves losing battle after battle. Finding candidates who possess the right skill set, experience and any other necessary characteristics to fit into your company’s culture will be extremely difficult and time-consuming if you have to weed through a pile of resumes. You don’t want to lose out on the best candidates just because your organization’s hiring process moves too slowly.
HCM solutions that include applicant tracking can help streamline the recruiting processes. And by leveraging data captured in your HR system, you can create optimal job profiles to ensure you attract the right talent.
2. Improved problem-solving and decision-making
The ability to capture, track and report on key employment data puts HR in a strategic and valuable position. Your HR solution should include analytics functionality that allows you to view and make use of:
- Recruiting and hiring metrics
- Performance and compensation data
- Attendance and scheduling patterns
- Benefits enrollment and utilization rates
An agile end-to-end HR software solution like PeopleStrategy puts this data at your fingertips in seconds. It also creates a single point of truth, ensuring that every department across your organization has access to the same, accurate data. By offering deep insight into your organization, an HCM solution enables you and your executive team to make smarter, more informed decisions.
3. More time to contribute to the company’s strategic plan
HR will always be responsible for managing all of the business functions that are central to the employee lifecycle – payroll, employee data, benefits administration and more.
But HR in 2019 is about much more than paychecks and performance management. Your department is finally being truly recognized for the strategic role it can play. By automating essential administrative tasks – processes that have to be completed accurately and on time, without exception – you give yourself the flexibility to take on large-scale projects that transform how your company approaches talent management and contributes to its long-term health.
HCM software helps businesses keep better track of what matters most to them: their employees.
4. Engaged and empowered employees
For employees to feel engaged with their day-to-day responsibilities, it’s critical for them to know the business has their back and wants to help make their lives easier, whenever possible.
An HCM platform with employee self-service – allowing staff to manage schedules, plan for time off and keep track of hours worked – can further solidify the employer-employee relationship. It also eliminates the need for HR to spend time on many of these routine tasks. This shift increases mutual respect between employer and employees and can help facilitate greater productivity in the long run, through increased employee engagement.
5. Clear bottom-line improvements
During HCM implementation, you need to spend money to save money at first. But there’s no denying the advantages these tools can offer when they’re effectively leveraged.
According to a report from Lighthouse Research & Advisory, 86 percent of companies that started using up-to-date HR technology realized tangible benefits within 12 months of installation. Take a look at some of these benefits:
- Organizations with cutting-edge HCM software had a 47 percent greater chance of increased productivity than firms with outdated HR and HCM tools
- They were 50 percent more likely to see better employee engagement
- They had a 73 percent greater likelihood of improved reporting and insight
The research also found that high-performing firms were eight times less likely to have complaints about their HR technologies than those with problematic output. Last but not least, companies excelling in this fashion had a better chance of simultaneously saving more money and improving their overall ROI.
The PeopleStrategy advantage extends beyond the benefits our integrated HCM platform offers. By adopting our bundled solution, you enjoy:
- A hire-to-retire HR technology suite that automates all essential employee lifecycle management tasks
- World-class employee benefits, brokered directly by PS
- Comprehensive administrative support that allows you to focus on serving your organization and employees