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hcm software

There are many moving parts when it comes to managing employees. Many HR teams are responsible for recruiting, payroll processing and retaining employees across multiple departments and locations.

One of the most successful ways to manage a company with many employees, is to utilize HCM software to simplify the way you work. An HCM (human capital management) software is used by human resources professionals to maximize their efforts across the entire workforce.

There are many different types of human resource management software designed to help organizations manage things like employee training, performance management, and payroll. Some HR software even allow you to automate these workplace processes.

If you think your organization could use an HCM software, keep reading.

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What is HCM software? 

Before you can use software for your business, you need to first know what it is you will be purchasing. So here is a quick definition of HCM software:

Human Capital Management (HCM) software is, essentially, a way to keep track of employee information and automate business processes in a centralized system.

HCM software encompasses programs and applications that are designed to aid in workplace productivity. They are meant to store and analyze data as well as automate parts of the employee lifecycle. The software can be used to help manage employees of all skills and experience levels with different needs.

Benefits of Investing in HCM Software

There are many benefits that come from investing in HCM software for your business. These include but are not limited to:

1. Employee Autonomy

Most HCM suites have a self-service portal for employees. This means that employees can access and manage their own data. For example, they can upload paperwork, update their personal information, apply for internal job openings, etc. This allows employees to be autonomous and rely less on the HR manager, giving HR teams more time to focus on strategic HR initiatives.

2. Increase Productivity

With HR technology, it is now possible to take control of daily operations and maximize productivity.

HR systems often allow you to automate all or parts of your business processes through HR workflows. As mentioned above, HCM software lets you manage employee attendance and payroll quicker and more efficient than before. Instead of keeping track of attendance on a spreadsheet or paper, software can simplify time keeping with digital time clocks and automatically load the data into your payroll module without human intervention.

Payroll is only one example. HR automation can also be applied to other processes such as time-off requests, expense reports, onboaring and offboarding. With administrative tasks out of the way, HR can be productive in attracting and developing top talent.

3. Improved Employee Experience

There is also the often-overlooked benefit of an improved employee experience. By knowing what to do, receiving better training, understanding the work, recording payment, being data-driven, and recording attendance, employees will have a better time at work. This, in turn, is statistically shown to increase productivity and job success in the employee life cycle. Though not a part of the software itself, the employee experience is a direct byproduct of investing in HCM software to enhance global talent. 

4. Minimize Human Error

HCM software can play a crucial role in minimizing human errors within an organization’s HR processes. By automating and streamlining various tasks, such as employee data management, payroll processing, and leave requests, it reduces manual data entry and repetitive administrative tasks that are prone to errors.

Without HCM software, there’s a higher likelihood of typos, incorrect hours recorded, and missed entries. However, with HCM software in place, employees can directly log their attendance through digital platforms, which seamlessly integrate with the payroll system. This significantly reduces the chances of inaccurate or late pay checks.

By leveraging HCM software, organizations can enhance data accuracy, improve compliance with labor regulations, and ultimately create a more efficient and error-resistant HR environment.

How to Select an HCM Software

When it comes to finding the right HCM software for your organization, you probably have a longwish list of things that need to be evaluated before you can make your decision. These requirements usually come from multiple stakeholders across HR, IT and executive teams which all have different needs when it comes to HR systems.

To help you figure out how to approach this, we’ve come up with some important criteria for you to consider when choosing your software:

Key Features to Look For

Before beginning your search for an HCM software, take the time to evaluate the key HRIS features and modules that you need to have in order to carry out your day to day HR activities. Think about the features of your current software that you like, what features you need to add, and which features are not important for your organization at this time.

  • Payroll and Benefits: Streamlines salary processing and administration of employee benefits.
  • Compensation Management: Manages employee pay structures, incentives, and rewards.
  • Time and Attendance: Tracks employee work hours and attendance records.
  • Talent Acquisition: Facilitates the recruitment and onboarding of new employees.
  • Employee Self-service: Empowers employees to access and manage their own HR-related information.
  • Performance Management: Monitors and evaluates employee performance and goal achievements.
  • Learning and Development: Provides tools for employee training, skill enhancement, and career development.
  • Employee Data Security: Ensures the confidentiality and security of sensitive employee information.
  • HR Analytics: Utilizes data to gain insights into HR trends, performance metrics, and workforce analytics.
  • Integrations: Allows the software to connect and synchronize with other systems and applications.
  • Workflows : Automates HR processes such as absence management, data management, employee onboarding, offboarding, etc.
  • Notifications : Alerts HR, managers, and employees about important milestones in their own or their employees’ careers as well as outstanding tasks and requests.

With all these features, human resources management can become exponentially more productive and give you a competitive advantage. Of course, most HCM softwares will not have every single useful feature, making it contingent can be hard in order to compare different products. It is important to know what to analyze when trying to decide on a resource management system and make sure the software has all your desirable key qualities. 

Comparison Criteria for HCM Software

There are a couple of things that you should keep in mind when it comes to comparing the different types of resource management softwares that are available.

1. Functionality

Once you know what functionality you need in an HR system, evaluating your options will become a lot easier. Ask yourself: What features do they have? Will they make managing the workforce easier? Does the functionality enhance the employee experience?

Remember that these functions are not neccessarily the ones you have now…

Of course, there are certain functions that are much more useful than others. But the ability to automate parts of the HR experience can eliminate altogether the need for specific features you thought you needed. Therefore, it is important to make sure that the software offers features that can make your life easier and increase employee satisfaction.

2. User-friendliness

The appeal of HCM software is that it allows the workplace to be an easier place to work. However, this becomes unfeasible if the software itself is difficult to use. Not only does this create an unpleasant experience, retaining talent will become harder as well. To avoid these types of problems, one of the best things to do is test the user interfaces before buying.

3. Connectivity

Of course, whenever you are considering getting something new for your business, you have to think about how it will interact with the already existing operations. For that reason, one of the most important parts of investing in new HCM software is making sure that it will seamlessly integrate into the existing company systems with employee engagement. Consider investing in integration software to ensure your software works well with other tools.

Connectivity allows for better workflows, easier access through SSO, and centralized data for reporting and decision making.

4. Value for Money

Finally, to preserve business operations, it is imperative to consider value for money when purchasing a software. This is where all of the potential features of HCM software become critical to examine. Without a sense of what is and isn’t a necessary part of the software, it becomes all too easy to invest in the wrong application for your company. That is why extensive research into the software you are considering is good to cultivate. By knowing the products that are available to you thoroughly, you can ensure that you are making the best possible decision for your evolving business. Every company works in a different way, and so calls for a different product to aid in the maintenance of a daily business.  

5. Mobility

In today’s dynamic work environment, the ability of HCM software to offer mobile accessibility is crucial. Mobile functionality ensures that employees and HR personnel can access and manage HR tasks anytime, anywhere, increasing efficiency and responsiveness.

6. Implementation

A smooth and efficient implementation process is vital to ensure that the HCM software is set up correctly and aligns with the organization’s needs. A well-planned implementation reduces disruptions, accelerates adoption, and maximizes the software’s benefits.

7. Ongoing Support

Continuous support is essential for addressing issues, updates, and changes that may arise after implementation. Robust ongoing support ensures that the software remains effective, reliable, and aligned with evolving business requirements. This helps to maintain smooth HR operations.


It is no secret that in business it is important to be as productive and as efficient as possible in HR processes, especially when running a large operation. With that spirit in mind, it is important to find tools to help make such efficiency/productivity possible. That’s why the HCM software you choose is the most crucial part of HR management.


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