Human Capital Management (HCM) is changing – and so should your business
Human Capital Management (HCM) has been around a long time. So why is it then, that Gallup’s latest State of the Global Workplace study finds that only 13% of employees are engaged at work? Why is disillusionment so rife? One UK blog I read recently even asked, wearily, Is Employee Engagement for Millennials Even Possible?
Increasing engagement and control of HCM
As we all know, it’s challenging to keep core Human Capital Management functions running smoothly and cost effectively, especially as companies expand across the globe. With each new office or operation comes an unwanted inheritance of disparate information systems and new compliance risks.
On top of this, HR leaders are being further tasked with promoting the company as an employer brand-of-choice in a highly competitive employment market. Since 75% of the workforce is expected to consist of younger generation Millennials by 2018, HR departments must move quickly. The needs, wants and expectations of this technologically savvy demographic aren’t static – paradoxically, one thing they want the most is the one thing few organisations are set up to offer: variety and change.
So how can we claw back engagement and wrestle control back of HCM? HR must understand these new ways of working and incorporate them into their HCM strategy. To win the war for talent in the next decade, senior leaders need to understand the transformation taking place in the world of work.
Increasingly, work is ceasing to be a place and more a state of mind. For large numbers of people, it can happen at any time of day and in any place.
Bold approaches to attract talent
There’s plenty of tools to help. Social media is an obvious one and easily accessible. We all use social media websites for our personal lives so why don’t we start using them for work?
Mobile [Please link to your local website] connectivity, flexible working and individualised talent development too are major drivers for empowerment in today’s workforce. Where the workforce is empowered, it will also be engaged.
Executives who understand this and equip their organisations to survive in this new world will be the ones still leading successful organisations in the Human Capital and Mobile Age.
Technology and tools for success
Two of the biggest areas that slow HR down in any location are recruitment and processing of HR functions. Recruitment Process Outsourcing (RPO) is part of a growing trend towards multi-process HR outsourcing (e.g. core HR, benefits and payroll) – where businesses can achieve overall cost savings of around 43% and access greater talent flexibility.
Combine this with software as a service (SaaS) – single cloud-based platforms that can service the entire organization – then firms are proven to perform better. Those organizations that show higher than average adoption of talent management, business intelligence, and social media solutions have been shown to outperform those with average or less technology adoption in terms of 16% higher revenue per employee and 35% higher profit per employee.
With the continued shift toward globalisation, Human Capital Management is coming into sharp focus as a potential driver for corporate success. The best solution is highly scalable and offers both centralised control and visibility along with local competence, plus flexible, robust, easy-to-use technology.
The benefits of such a comprehensive, integrated solution are felt at every level. Sure, overall costs decrease and processes run more efficiently. But even more important in the long term is that employees become engaged again. A true HCM solution means greater satisfaction and empowerment. With a comprehensive Human Capital Management system in place, organizations can make processes more strategic for executives, more empowering for managers, more engaging for employees and more efficient for HR. And that even goes for Millennials too: what they’ve been shown to value most is a solid work-life balance, flexible working opportunities and ‘meaningful’ work. So, they’re just like the rest of us after all then!
For more talent management insights read our latest report “The Era of Global HCM Technology-enabled Services”.