Human Resources is a changing industry, thanks in part to Human Capital Management (HCM). This set of practices governing people resource management recognizes the growing need of organizations to recruit, train, and keep the right people for the positions that will most benefit the company. Without the people, organizations wouldn’t thrive, and HCM considers that to be the basic premise of effective HR.
Human Capital Management covers workforce acquisition, management, and optimization, which includes all the HR processes and functions. With these practices, HR is evolving into much more than just a service unit. What’s more, its traditional administrative functions are also changing with the progress of technology and new software. Let’s have a closer look at the relationship between HCM and HR functions:
It Helps Hiring Become More Strategic
The role of HR in the hiring process was always important, but nowadays, it’s getting even more attention. As organizations become increasingly more focused on the future and the targets they wish to hit, they can’t afford high turnover rates. When an employee leaves, a new one has to be hired and trained in their stead.
The question that naturally arises when experiencing a high turnover rate is whether it was possible to hire a better fit for the position. For strategic hiring, skills aren’t the only factor that matters. It’s also a question of whether a candidate is a good company culture fit, and whether the organization’s mission truly resonates with them. By keeping these things in mind, an organization can foster growth instead of constantly training new hires.
Enhances Performance Tracking
Another function of HR is performance tracking, which many organizations did not watch closely until the time came to re-evaluate the efficiency of their processes. With the importance of data becoming more paramount for business with every passing day, everything is analyzed.
HCM helps in that process by providing more consistent and advanced ways to track the performance of individual employees and departments. When this process is done well, it does a great job of highlighting which departments need help, or where an employee can be reassigned to perform better.
Improves Core Administrative Support
The processes of core administrative support are what keep an organization functioning. They’re the fundamental processes that include payroll, running and managing personnel and benefits administration, service center, and employee self-service.
Core administration doesn’t seem to play a huge part when it comes to the strategic goals of an organization, but it can provide the data used to determine those goals. Therefore it’s essential to keep track of this core administrative data and make sure it’s always up to date and accurate. For HR, this used to be a challenge that Human Capital Management practices are aiming to solve by implementing new solutions.
The Role of Data in HR Transformation
HR cannot function properly without data. As HR evolves, it is taking on a more important role in the functioning of an organization. However, to ensure data quality, organizations have to start implementing new solutions that make this possible.
With Runner EDQ’s software integration solutions like CLEAN_Industry, HR departments can run a smooth process when managing their data sets.