Adding Up the Benefits of HCM
Human Capital Management allows organizations to manage their workforce in a more effective and efficient manner. As the business environment becomes more and more complex, organizations are recognizing the positives that come with investing in an HCM system. However, many organizations are still reluctant to change their current systems and continue to manage their workforce through inefficient processes that require a significant amount of paperwork and time. The benefits of HCM outlined below, can help you realize that transitioning to new systems and processes can drive positive outcomes.
+ Eliminate Mundane Administrative Tasks
With an HCM system, your HR department will be able to streamline processes. For example, when onboarding employees, your HR department will no longer have to ask for documents from the candidate, review the candidate’s qualifications, or file the paperwork. Instead, a candidate will upload all of their documents to the cloud where managers can review, comment, and rate potential hires. This eliminates a significant amount of time spent on paperwork review and filling, so that the HR department can focus on making more strategic business decisions.
+ Reduce Paper
According to The Paperless Project, the average office worker uses 10,000 sheets of paper per year. In addition, every 12 seconds a document is lost and it takes about 18 minutes to search for that misfiled document. By utilizing an HCM system, you are able to go paperless by storing all of your files safely and securely in the cloud. You will never have to worry about storing or misplacing documents.
+ Increase Retention
The cost of replacing lost talent is 70 to 200 percent of that employee’s annual salary. Technology allows you to onboard new hires faster, and set and track employee goals to decrease their time to productivity. By retaining employees, your organization will cut costs, create a great work culture, and increase overall efficiencies.
+ Lower Labor Costs
It can be difficult to keep track of all the different salary grades at your organization. It can also be challenging to make sure that your organization never exceeds the staffing budget. By organizing your employees by position, you can ensure that an employee’s salary and employment status is in compliance with the budget and that every new employee is placed in an approved to fill position.
+ Decrease Compliance Risk
Between ACA reporting, Wage & Hour laws, and countless other regulations, it can become difficult to maintain compliance. Unfortunately, organizations that are still processing payroll manually increase the risk of hefty penalties and fines if there are violations. Furthermore, in the Health and Human Services industry, it is critical that you are staffed with highly skilled professionals. These professionals must maintain up-to-date and valid credentials to ensure you are providing high quality care and avoiding funding clawback.
All in all, the many benefits that come from an HCM system add up to equal success. By implementing an HCM system, your organization will see a huge difference throughout the entire organization, as productivity and efficiency rise to new heights. After calculating all of the benefits, there is no doubt that you will find an HCM system to be the best solution.