When a business reaches a certain size, it often adds dedicated human resources personnel. Unfortunately, these specialists often end up spending much of their time managing systems and babysitting data, instead of focusing on areas where they can do the most good.
HR technology solutions can help businesses automate some basic functions, allowing HR professionals to focus on higher-order work. Called human capital management (HCM), this technology has been available for large enterprises for some time, but only recently became available for small businesses through new user-friendly and scalable offerings. So how could this technology help your business?
Reduced risk of errors
It all starts with payroll. It’s the most fundamental human resources function of a business. But the right HCM payroll solution can amplify the function – helping employees maximize their paycheck with automatic contributions to benefit programs, automatic transfers, and more. Payroll also houses key data needed by many other HR systems. The integrated nature of HCM means core data is shared, so you can access payroll, time and labor, and HR from one system, reducing the chance for data entry errors.
Streamlined vendor management
Many employers are offering more and better benefits to stand out when hiring and to retain quality employees. HR managers must also evaluate and manage vendors for payroll, retirement, health care, and insurance. An HCM solution can merge all these core functions into one package. That means fewer vendors to manage, a central point of contact, and a business advisor who understands the full picture of your payroll and benefits offering.
Many of today’s intelligent software and cloud solutions can handle routine tasks faster and more efficiently than their human counterparts. This allows HR professionals to focus on strategic planning and the needs of personnel – creating staffing plans, supporting employees, overseeing hiring, and creating employee satisfaction initiatives.
Increased employee engagement
A key component of HCM is that employees are empowered to play an active role in managing their information and customizing their benefits packages. Using a secure login, employees can update personal information (such as changing their address or adding a new dependent), confirm, and edit information on file, with fewer steps and no paperwork. The system can also introduce tools such as retirement benefits management programs, enabling them to take a more active role in planning for their future without requiring HR’s assistance.
Businesses often perceive a need, but may not realize the need is rooted in something more fundamental. If your business could benefit from retirement or health plans that are easier to use, the real need may be for an HCM system which simplifies the benefit program but also provides other efficiencies and perks.
Now that HCM solutions are turnkey enough to fit smaller organizations, now may be the right time to contact Alerus and learn if our HCM system is right for your business.