We recently hosted a webinar on “Improving Workplace Productivity with Human Capital Management Technology” in response to the growing number of companies facing challenges in managing human capital alongside all other aspects of running a business, especially as they expand and hire more employees.
Many growing businesses continue to rely on their existing technology for various reasons. Some fear the perceived high costs of new systems, while others are deeply entrenched in legacy solutions that align with their current processes. While sticking with the familiar may seem easier, this approach can significantly hinder growth and efficiency. However, managing human capital doesn’t have to be as daunting as it once was, thanks to today’s innovative solutions. As I recently reminded participants, “Change happens when the pain of staying the same is greater than the power of change.” I shared this because I’ve seen countless stories of clients who either weren’t fully utilizing their benefits administration systems or, in some cases, had no system in place at all. They were managing everything manually, and when the HR person left unexpectedly, they found themselves lost, not knowing where to begin.
Benefits administration and HCM are two essential pillars that employers should consider and focus on to optimize HR efficiency. We all know how overwhelming manual processes can be, they’re not only time-consuming and error-prone but also costly. By implementing a strategic benefits administration and HCM system, employers can address these issues while realizing significant benefits.
Landscape of HR Technology
Before diving into the benefits of implementing an HCM system, let’s break down the differences between HRIS, HRMS, and HCM. HRIS is typically the starting point for companies looking to digitize their HR operations, providing a solid foundation for more advanced systems. HRIS is fundamental for maintaining accurate employee records and managing essential HR processes efficiently. HRMS builds upon the capabilities of HRIS by adding recruitment, onboarding, and performance management functionalities. This makes it suitable for companies looking to enhance their HR processes beyond basic administrative tasks, focusing on talent acquisition and employee development. HCM, on the other hand, represents the most advanced level of HR systems, integrating all HRMS functionalities with strategic HR planning and development tools. It is ideal for companies looking to align HR practices with business objectives to maximize operational efficiencies and employee engagement.
“Referencing a study from SHRM, an efficient onboarding process that leverages HRMS, an HR management system, can increase employee retention by 50% – that can lead to reducing turnover and increasing retention.” Nick Tranguch, Chief Growth Officer
Automation is the driving force behind modern HCM systems, enabling companies to achieve significant improvements in efficiency and productivity. By automating time-consuming, manual HR tasks, such as benefits enrollment, payroll processing, and employee data updates, HCM systems can drastically reduce administrative overhead. This automation minimizes the risk of errors, reducing the need for costly corrections and allowing HR teams to focus on higher-value, strategic activities rather than countless hours spent on routine administrative work.
Benefits of Having the Right System in Place
Understanding the why behind implementing an upgraded benefits admin and HCM system is just as crucial as recognizing its benefits. Benefits such as self-service portals for easy access to benefits, updates, and essential information promotes transparency along with employee satisfaction and engagement. These systems can also simplify compliance management, helping HR departments stay on top of evolving regulations like ACA, HIPAA, and ERISA, reducing the risk of penalties. By automating HR tasks like benefits enrollment, reporting, succession planning, development, and life event updates, HCM systems relieve HR teams from the stress of manual monitoring, allowing them to manage the workforce and the goals of the company more effectively. By selecting the right system, companies can boost efficiency, enhance employee engagement, and achieve key strategic business goals.
Working with a Dedicated Team
Time and time again, our technology team has been a crucial pillar of support for our clients, stepping in not only as consultants but also as trusted mediators, advisors, and even lifelines, ensuring that clients not only receive access to the capabilities they are paying for, but also stepping in to help business operations continue seamlessly during unforeseen events. Companies that rely on manual processes for payroll and HR, particularly when managed by a single individual, are vulnerable to errors and operational disruption if that employee leaves unexpectedly. Our commitment extends beyond simply implementing the right HCM system; we ensure our clients fully capitalize on the platform’s features and benefits. By working with a team that understands the intricacies of these systems, we provide unmatched support that goes far beyond what most brokers can offer, helping businesses navigate complexities to safeguard their operations for long-term success.
Key Takeaway
Understanding the differences between HRIS, HRMS, and HCM is crucial for organizations looking to optimize their HR processes and strategies. Each system offers a progressively broader range of functionalities, from basic employee data management to comprehensive human capital management. By choosing the right system, organizations can enhance efficiency, improve employee engagement, and drive strategic business outcomes. If you’ve implemented a system but aren’t fully leveraging its features, our team can help optimize your current setup and meet you where you are.
“Employees are more productive in their first 90 days when they undergo an onboarding process that includes an efficient technology component, fostering engagement and education.” Nick Trangush, Chief Growth Officer
If you’d like to learn more, BSI offers the expertise and support needed to consult, implement, and manage an efficient, cost-effective solution. Reach out to us to discuss the key differences between different platforms and explore how we can help you implement the right system or optimize your current one. Our team specializes in resolving the challenges related to HCM platform integration, ensuring that your system works seamlessly to deliver maximum value.