Human Capital Management 101
Human Capital Management, or HCM as it’s often referred, is a way to organize and manage your workforce. It’s often lumped together with other terms such as Human Resources (HR), Human Resource Information Systems (HRIS), and others. It can include things such as tracking new applicants, onboarding new hires, time clocks and timekeeping, HR management, payroll processing, benefit administration, and terminating employees. HCM is a complex and vital piece of any sized business. Small businesses and mid-sized companies all have challenges with hiring, managing, and terminating employees. Human Capital Management describes what takes place in between those steps and how to best manage the people within an organization.
HCM software is designed to bring multiple pieces of business operations together under one system. Human Resource Information Systems (HRIS) combine with payroll software and benefit software to make a single data base for all your HR needs.
There are several benefits to bringing these elements together under one HCM system. First, everything is stored in the same place so it’s easy to access and easy to find. Additionally, the different elements of your business will connect and “talk” to each other. For example, if an employee makes a benefit change using the benefit administration module then this change is immediately reflected in payroll processing. Or let’s say HR hires a new employee. Once they are added to the system in HR they are also now active in payroll, the employee time clock, and benefits. The idea is to streamline and automate multiple systems into one simple HCM data base.
Learn more about how HCM and payroll software can help your business by contacting Ideal Payroll Service at 402-614-3028.