In today’s on-demand, always-on business world, the value of efficiency has never been higher. Organizations are under great pressure to lower costs and increase productivity while maintaining a high level of service. For HR, this means establishing best practices, efficient processes and leveraging a reliable human capital management (HCM) / HR solution to streamline time-consuming administrative tasks.
“Reliable HCM software and related best practices are essential to successful businesses.”
For HR professionals 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. Applicant tracking
Unemployment is the lowest it’s been in the past decade, leading to a war for talent – where those without an applicant tracking system may find themselves losing battle after battle. Finding candidates who possess the right skill set, experience and 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. 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 very strategic and valuable position:
- Recruiting and hiring metrics.
- Performance and compensation data.
- Attendance and scheduling patterns.
- Benefits enrollment and utilization rates.
Having this data at your fingertips provides deep insight into your organization and 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 business functions that are central to the employee lifecycle – payroll, personnel data, benefits administration and more. But HR is more than paychecks and performance reviews. HR is finally being recognizes for the strategic role it can play and by automating essential administrative tasks that have to be done accurately and on time, you give yourself the flexibility to step into that role.
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 that allows staff to conveniently manage schedules, plan for time off and keep track of hours worked – and also creates an efficient experience for these tasks on HR’s end – can further solidify the employer-employee relationship and facilitate greater productivity through increased 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 just started using up-to-date HR technology realized tangible benefits within 12 months of installation. These included:
- 47 percent greater chance of increased productivity than those with outdated HR and HCM solutions.
- 50 percent more likely to see better employee engagement.
- 73 percent greater likelihood of better 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 ROI.
To learn more about what PeopleStrategy’s eHCM platform can do, contact us!