- 13 July 2016
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Human capital management (HCM) values the employee as an important business asset that has a concrete measurement of value. This value can be increased and enhanced with the concerted investment of a dedicated company. HCM is in part the monitoring and measuring of employee performance to help improve the value of this human asset. Management plays a large part in these measurements and holding employees accountable to company expectations. HCM is closely tied to an enterprise resource planning system (ERP) that can help manage talent, monitor human capital, record results, and direct decisions. ERP software can help ease the challenges of HCM by automating and providing structure to many of the day-to-day processes of managing human capital.
Today’s employee demands more out of their HR department. This includes free access to human resource information systems and the ability to call up relevant information about their work history, current status, and other resources from anywhere they have internet access. An ERP puts this data at the employee’s fingertips and extends participation in HR tasks to the managers and employees themselves with easy access to tracking tools, benefits administration, paperless workflows, and the ability for employees to update their own personal information to take the load off of the HR department and provide employees with instant access to pertinent data. An ERP system can also help employees and HR departments quickly and easily tailor benefits packages and record benefits history, historical wages, and training records for accurate tracking to offer employees best-fit solutions.
From the time an employee is hired until they retire, a robust ERP solution can help organizations manage the employee lifecycle and provide the support necessary to get the most out of this valuable asset. Maximizing HR functions while minimizing the cost to do so is aided by using an ERP system that grows with the organization, remains flexible, provides structure, helps the business adhere to regulations, and manages costs. Benefits administration becomes easier with the ability to review benefit plan types and enrollment, and perform coverage calculations to get the best and most cost-effective solution for the company.
A large part of getting the most out of human capital is being able to monitor performance and take corrective action. An ERP empowers a business with tools that allow them to track adherence to company goals, manage and review productivity, and review payroll reports. An ERP can also provide employees with information, advice, and goal-setting tools for better self-management and career development. An ERP system can help an HR department analyze their organizational structures and better manage talent deployment to meet business needs. These systems can maintain a detailed summary of attendance and leave, and provide easy access to reports for managers at every level to review.
An ERP system can take the pain out of recruitment by helping manage, organize, and automate the processes of training, administration, and onboarding. By consolidating all workforce processes into a single platform, HR departments can communicate throughout the company quickly and easily to transfer information about new employee hires and existing employee performance. With accurate tracking of headcount and open positions and transparent labor costs throughout the company, talent acquisition becomes a seamless and streamlined process.
Savvy human capital management comes from robust human resource management tools that can help HR departments reduce costs, acquire and redeploy talent, track performance, and provide benefits and payroll information back to the employee as well as plan for workforce adjustments in advance. In short, an ERP system can help manage the entire employee lifecycle and offer automated solutions to some of the most costly and time-consuming processes of human capital management.