Choosing the best Human Capital Management (HCM) software

What is HCM software?

Human Capital Management software, commonly referred to as HCM software, takes care of all the HR tasks and helps companies strategically manage their existing workforce. These tasks include recruitment, onboarding and training, employee development program and performance management.

With HCM software in place, companies can automate all their hiring tasks, handle personnel management, attendance tracking, and implement their workforce management strategy effectively.

Why should you have HCM software?

Digital transformation has become inevitable. Given that the world has moved to the digital space, it is necessary that companies adapt to the novel ways of the world. With automation, manual systems have proven to be inefficient. Unwillingness to adopt automation can lead to frustration among employees, preventing them from performing to the fullest, ultimately leading to high turnover rates. Narrowing it down to the HR department, HR folks would find it difficult to perform their tasks with efficiency if they are stuck with manual processes. That is where HCM software comes in.

Technology empowers HRs to perform efficiently and effectively. They gain more visibility and save time alongside. With features like ESS, it gives employees more flexibility and reduces the load on HR folks for doing tasks like data updates, document management. Tasks like attendance tracking, personnel management, onboarding, and so on., are taken care of with ease, giving them more time and flexibility to focus on the most important asset of your business: your employees.

How is HCM software different from HRMS?

There is a lot of overlap between the functionalities of HCM software and Human resource management system (HRMS). Vendors and companies often use these terms interchangeably.

That being said, some features are distinct and can differentiate HCM software from HRMS.

HCM software plays a key role in acquiring and managing the workforce, while HRMS is about managing all HR administrative tasks such as record keeping, benefits, compliance and so on.

Things to consider while choosing Human Capital Management software:

With so many HCM systems in the market, it is difficult to pick the right one for your organization. Here are some features you should consider:

User friendly UI: Not everyone is adept at technology. Look for an HCM system that is easy to use, efficient and get things done in a matter of a few clicks.

Timely support: Are their product tutorials, support articles, and videos that can be referred to when needed? How good is the customer support service? Is it prompt, courteous and helpful? Do they provide product training?

Essential features:

Applicant Tracking System: Ensure that the HCM system can take care of everything related to recruitment. This would include candidate sourcing, resume parsing, screening, candidate engagement, talent pool management, interview scheduling, offer management and so on.
Onboarding: Check if you can set up an onboarding checklist, send welcome email, manage new hiring document processing, collect e-signatures and so on.
Time off management: Ensure that it lets you configure a paid time-off policy (PTO) for the organization, add holidays, and track time-off trends of the entire organization.
HR reports and insights: Does it have reporting functionality that provides reliable data, and can be customized.
Integrations: Does it have in-built integrations and provide scope for further integrations? Does it have a viable API?
Employee Self service: Does it let employees handle all their data processing and document management?

Value for money: Are the usability and features worth the money you spend on? Is the pricing chart clear, or are there any hidden charges as well?

What are the benefits of using HCM Software?

There are innumerable benefits to using HCM software in your organization. It comes as a boon to all your employees, and particularly to your HR department because of the following reasons:

It empowers your employees to take care of the miscellaneous tasks by themselves. They no longer have to wait for the HR team to update their personal details, manage their documents, approve their PTO, look for their payroll information and so on. With an efficient Employee-self service, employees can take care of all these by themselves in a matter of a few clicks. This also reduces the burden on the HR department, giving them more time to focus on important workforce decisions.
Helps you implement the recruitment strategy more effectively. With an HCM system in place, HR members will have more time to pursue top talent. The Applicant Tracking System in your HCM software will take care of all administrative tasks such posting jobs, collecting and screening resumes, maintaining a talent pool, engaging with candidates and so on. This will improve the quality of hire, and provide a great candidate experience.
With more time in hand, HR can focus on talent management. They work closely with managers to identify top talent and devise ways to help them with career development and succession planning in the organization.
It helps to improve the overall company productivity and happiness quotient of the employees. With the right HR software in place, employees can get their jobs done faster and efficiently, no longer wasting time on paperwork processing. They get to work on their career development, and will look forward to working with the company, thereby improving the turnover rate.

Freshteam - HCM software for your growing business

From hiring to retiring, take care of all your HR related tasks in one place.

Applicant Tracking System - set it on Autopilot mode!

From candidate sourcing to offer management, Freshteam would take care of all your recruitment tasks. Publish jobs on multiple job boards, screen resumes, schedule candidate interviews, and send an offer they can’t refuse, all from one place. Now, you can focus on the most valuable asset of your company; your employees.

Onboarding - For a great first day at work

Ensure that your new hires have a great experience on the first day which is devoid of paperwork and waiting for administrative work. Get all the employment contracts and hiring paperwork e-signed and send welcome mail before their first day so that they can use the special day socialising and learning about the company.

Absence Management - Stay on top of the PTOs

Implement a Paid Time-off policy for the entire organization, so that your employees know what is acceptable and what isn’t while planning their time off. With holiday calendars and time off approvals, your employees can plan for their vacations beforehand and get them approved in a click of a button.

HR reports - Let the numbers do the talking

With extensive 7 curated reports and unlimited custom reports, gain actionable insights on what is working and what isn’t and take informed decisions. You can present them directly to the team and send them to your higher officials on a pre-set frequency so that everyone remains updated.