The traditional assumption about talent management in the “new work world” has turned upside down. Evidently, the gap between HR capabilities and growing business needs is becoming increasingly extensive with several companies struggling to keep up.
Trends in HR Investment in India
According to the Deloitte report, “In next 12-18 months, 7 out of 10 Indian companies are planning to increase their HR spending”.
Organizations are exhibiting an upward swing in hiring with business growth while balancing backfilling positions in line. In addition, talent development teams are investing heavily in workforce management and development capabilities of mid-level managers.
However, the burning question is – “Do the companies have the skills and talent they need to innovate and grow? And, do they have the HR competencies – the applications, systems, cloud processes and internal processes necessary to get the most out of the new talent they seek to bring on board and the employees?”
In most scenarios, the answer to those questions are “NO”, and C-suite is turning to their talent acquisition leaders to come up with new stratagems for attracting, developing and retaining their “Human Capital”.
Understanding the anatomy of Human Capital Management (HCM)
The Human Capital Management is primarily a set of practices to people resource management. It is typically categorized into:
- Core Administrative Support – Benefits administration, personnel management, payroll, employee self-service and service centre.
- Strategic Support – Competency management, workforce management, performance management, compensation planning and strategy, recruitment, onboarding and organization visualization.
Is it time to invest in Human Capital Management Software?
Human Capital Management depicts a systematic management of people, policies, and procedures. It is an aggregation of various components including – talent management, payroll services, time and attendance, human resources management and benefits administration.
According to the Industry experts, it is not necessary for every business to implement a comprehensive cloud-based HCM solution because some industries do not need high-value talent as much as others. However, in such cases implementation of selected HCM modules can be a pragmatic approach. For instance, payroll services can be immensely helpful to businesses for effectual people management.
HR and Payroll Services
In emerging cloud-based HR solutions, companies can do more with their payroll services. Empowering the HR managers to access payroll insights, improves compliance and drive towards comprehensive workforce management. Integrating the right payroll service means:
– Expertise in employment-related compliance and tax matters.
– Slashing down the risks of health care reform-related penalties and compliance issues.
– Better management of business cash flow.
– Vast reductions in efforts, time and money spent on payroll administration.
Top 3 Trending Human Capital Management Practices for 2016
1. Bridging the Skill Gap
? Problem – We already recognize that certain job skills are hard to find, nevertheless dynamic workforce demographics, for instance Baby Boomers and Retiring, could make it even tougher for organizations to find the right talent at right time.
Most of the CEOs are concerned about the availability of key skills as working-age populations are declining.
Solution – A new generation of workers will help fill this gap, but these younger workforce have very distinct expectations about careers, loyalty, and collaboration and tools or technology they use to get things done. It implies employers will have to improve at corresponding job skills and requirements accessibility across geographies.
2. Employee Experience is directly proportional to Customer Experience
? Problem – For organizations great customer experience is of critical importance. However, sometimes they do not realize that employee experience impacts customer experience. Now, amid talent war at global scale, the employee experience has converted every bit as vital.
Solution – In 21st century customer service and Human Capital Management (HCM) have transpired as the two essential business applications. That is because they both concern of taking care of people and employees (who caring for your customers).
3. Implementation of New Tech Tools
? Problem – Despite a new generation of cloud-based Human Capital Management competencies, several businesses are still using yesterday’s HR systems and applications.
Solution – A balanced yet active sync is needed between workforce management, innovation, and HR tools. It is imperative for organizations to optimize the workforce and attract new talent. The right Human Resource technology can give business leaders tools to engage with their modern-day workforce in new ways.
The Growing Importance of Human Capital Management and People Analytics
Did you know? Too few companies are aggressively implementing people analytics capabilities to address complex talent and business needs.
Today’s business challenges demand more than just greater adeptness in Human Resource Management System and HR department. Rather, they need improved effectiveness gained through all-inclusive understanding of the variables driving workforce performance.
It is imperative for businesses to comprehend the complex transactions between staffing levels, compensation structure, competencies and other factors to assist them amplify their return on human capital.
If we can smartly apply science in coordination with HR technology to improve the talent acquisition, management and alignment of people, the returns can be remarkable.