Decreasing unemployment rates, generational shifts in applicant pools, and new technology trends generates an increasing importance for your business’s employee management policies. Older personnel with decades of experience may be replaced by applicants with fundamentally different skillsets affected by the digitization of traditional commercial and social channels. Modernizing your human resource practices is key to being able to ensure employee retention and survive within the current market.
Your HR technology system is integral to maintaining your human capital management (HCM) processes and encouraging both new employee application and retention. Outdated solutions are problematic as they lack access to modern technology, the ability to automate tasks, and generate data siloes that prevent you from harnessing the most from your HR practices. Upgrading to a state-of-the-art HCM system will deliver the best results from your human capital operations.
Here are eight reasons to upgrade your HR technology system to a modern HCM solution:
1. Remove Manual Processes
Replacing manual entry with automated processes enables your business to accelerate deliverables and improve costs across the board. HCM automation alleviates burdens associated with attendance and payroll entries and provides a streamlined experience for personnel. This delivers an additional benefit in improving employee engagement, which further encourages retention. Automating your HR technology system vastly increases your ability to interact with employees and deliver organizational value.
2. Extend Visibility
Traditional processes and legacy HR technology systems create data siloes with disparate information streams. These walled off databases lead to reporting inefficiencies between each business unit which can become an organization-wide deficit. A modern HCM solution not only prevents this loss of ROI on your HR systems, but contributes additional value in providing a single source of truth for your personnel management operations.
3. Manage and Track Data
Being able to leverage comprehensive operational visibility also enables you to more effectively maintain and apply data previously obscured by siloes. An up-to-date HR technology solution allows you to accurately track information for applicants and current employees from a single location. Instead of being forced to piece together incomplete entries from disparate systems, your business will obtain real-time, actionable data organized by user-defined rule sets.
4. Scale Operations
Modern HCM solutions are better equipped over outdated HR technology systems to incorporate scalable processes. The growth of your business will introduce new data that will overwhelm traditional manual entry procedures and disconnected systems. Without modifiable entry fields and configurable workflows, your HR operations cannot be adjusted for informational shifts and will produce incorrect data. Upgrading to a modern HCM solution will ensure that your processes can be scaled as your organization continues to grow.
5. Ensure Compliance
Complying with labor regulations is integral to maintaining your organization’s objectives, but relying on traditional HR processes creates opportunity for noncompliance. Manual procedures bring the risk of introducing human error into data management, which will lead to violating compliance if incorrect information is recorded or if forms are not submitted properly. Modern HCM systems enable you to effectively organize compliance reporting and help prevent your practices from violating personnel regulations.
6. Reduce Costs
The factors outlined above all contribute to more efficiently managing your ROI on your HR technology system by streamlining all your human capital administrative operations. Automation and increased data visibility not only cut down on time spent on repetitive tasks, but also improve margins by decreasing wasteful spending and enabling you to enhance performance. With a modern HCM solution, you can ensure that your HR investments are applied towards employee management and not exhausted on ancillary tasks.
7. Leverage the Cloud
Modern HCM technology delivers superior connectivity through cloud computing, which allows for real-time functionality and data capture. Cloud HR solutions grant you immediate access to information, enable two-way communication modes regardless of distance, and permit flexible device usage so that employees can submit entries through smartphones and tablets. Upgrading your system to a cloud-based platform empowers your business to obtain the most value from your HR technology investment.
8. Integration with ERP
Enterprise Resource Planning (ERP) software provides a comprehensive “helicopter” view of your organizational processes and operational data. To capture the most informative and seamless view of your personnel-related procedures, you must be able to integrate your HR system with your ERP. Leveraging a customized modern HCM tailored to your existing enterprise software will permit you to attain true insight into your human capital operations.
Review Your Current HR Technology to Determine the Value of an Upgrade
Relying on traditional HR technology systems prevents you from leveraging modern solutions for emerging personnel trends. Conditions will always shift and previously stable HCM policies may become obsolete at any given time – upgrading your HR and payroll technology allows you remain current and competitive in the face of market changes.
Sign up for a free HR technology assessment to determine if you are getting the most out of your current system and if you would benefit from an HCM solution upgrade.