How to define your Employee Value Proposition (EVP) and use it to attract candidates?

How to define your Employee Value Proposition (EVP) and use it to attract candidates?

How-to-define-EVP-and-use-it-to-attract-candidates

Employee Value Proposition (EVP) is a solution for attracting talent in a highly competitive job market. In order to make yourself their employer of choice, you have to be able to trigger your perfect candidates’ interest by differentiating your company from your competitors.

You can do that by presenting your unique Employee Value Proposition (EVP).

What is an Employee Value Proposition (EVP)?

Simply put, Employee Value Proposition (EVP) is a compelling answer to the following candidate’s questions:

“Why should I work for your company instead of somewhere else? What’s in it for me?

Why is your company a great place to work at? What can you offer me that other companies can’t?

When faced with that questions, many companies highlight the salaries and benefits they offer.

However, compensations and benefits are just a part of an effective Employee Value Proposition (EVP).

Employee Value Proposition (EVP) is a comprehensive offering that companies provide to their employees, which has 5 main components:

1. Compensation

This component encompasses employee’s satisfaction with salary, but also additional rewards such as bonuses.

2. Benefits

This component incorporates different benefits (health, dental, retirement, tuition and disability), but also paid time off and life insurance.

3. Career

This component consists of employee’s career stability and a chance for its development, including opportunities for training and education.

4. Work environment

This component refers to a positive work environment, sense of personal achievement and a healthy work-life balance.

5. Company culture

This component is based on positive relationships and team spirit with your colleagues and managers.

employee-value-proposition-talentlyft

Steps: Define and promote your EVP

There are 4 crucial steps in the process of defining and using your Employee Value Proposition (EVP) in order to attract candidates:

Step #1: Define your candidate persona

The first step in defining your company’s Employee Value Proposition (EVP) is defining your candidate persona. 👩

Step 2#: Define each main component of your Employee Value Proposition (EVP)

The second step in defining your company’s Employee Value Proposition (EVP) is

specifying each of its main components with your candidate persona in your mind.

Step 3#: Personalize your Employee Value Proposition (EVP)

In order to use your Employee Value Proposition successfully, customization is the key. If you want to attract the right talent for your company and open positions, you need to segment and personalize your EVP for your target audience.

Step 4#: Promote your Employee Value Proposition (EVP)

There are many different types of content (such as team blogs and company videos) and communication channels (such as your career site, social networks etc.) which can be used for promoting your Employee Value Proposition (EVP).

Employee Value Proposition (EVP) examples

Here are 2 different, but very effective examples of Employee Value Propositions (EVPs), presented in a popular video format.

BMW’s Employee Value Proposition (EVP) video

In this video BMW employees explain what makes BMW Group such a special employer and what do they like the most about working for BMW. In this video you can see young, talented people explaining why they chose a career with BMW over other companies.

(https://www.youtube.com/watch?v=u5KMRNdY4g0)

Deloitte’s Employee Value Proposition (EVP) video

This video offers a glimpse into the everyday experiences of Deloitte’s employees. At the same time, it very cleverly incorporates and showcases different components of Deloitte’s Employee Value Proposition (EVP).

(https://www.youtube.com/watch?v=qDXWYzz7cHM)

We hope this two videos have inspired you and gave you some fresh ideas.

Now go on and start defining your own Employee Value Proposition (EVP)! 🙂

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Riyadh Header

Saudi Vision 2030 on the Agenda for Inaugural HR Tech Saudi Summit 2017

Leading HR and IT decision-makers will gather to discuss next generation HR challenges and new frameworks proposed under Saudi Vision 2030.

HR Tech Saudi Summit

Dubai, August 31 2017 — As the Fourth Industrial Revolution continues to transform the workplace with Artificial Intelligence (AI) and Automation becoming increasingly prevalent across industries, Dubai-based B2B event specialist QnA International, has unveiled plans for a first-of-its-kind summit to discuss the unique challenges this will place on HR and IT departments in Saudi Arabia.

Being the only event dedicated to HR Technology in the Kingdom, the HR Tech Saudi Summit, taking place 20-21 November 2017 in Riyadh, will unite HR executives with the IT industry in Saudi Arabia at a time when the Kingdom is making significant investments in leading technology solutions, in line with Saudi Vision 2030.

QnA Director Mr. Sidh N C

Sidh N.C., Director, QnA International, said: “The debut of the HR Tech Saudi Summit comes at a time when Saudi Arabia is moving towards digitization and hence uniquely placed to welcome the collaboration between the HR and IT capabilities. The summit is the first of its kind in the Kingdom to address the technological revolution underway in the workplace and debate how best to harness its capacity for the success of business in the public, private and government sectors”

In line with Saudi Vision 2030, the Kingdom has pledged to increase investments in technology in order to continue leading the digital transformation of the region. Under the King Salman Program for Human Capital Development, 500,000 government employees will receive training to upskill by 2020. All Ministries and Government institutions will be required to adopt best practice in Human Capital Development and other organisations will be tasked with enhancing engagement and the employee experience.

Enabled by mobile, remote and real time connectivity, digital HR processes now reach beyond payroll and data capture to incorporate functions such as interviewing, performance management and KPI review. The technology exists for employees in larger organisations to share concerns and feedback, or even complete training remotely, through mobile video.

Sidh N.C. added: “With discussion focusing on the latest HR technology trends, innovations and disruptive ideas, the HR Tech Saudi Summit will help leaders from the HR and IT departments to collaborate on effective solutions to modern human challenges.”

The launch of HR Tech Saudi Summit, follows the three successful editions of HR Tech MENA Summit in Dubai. The 3rd edition of HR Tech MENA took place in May 2017 under the theme of Revolutionizing the Future of Work with discussions ranging from the challenges of rapid technological developments to the need for enhancement of workplaces.

About HR Tech Saudi Summit

Reshaping the Kingdom's Workplace

The HR Tech Saudi Summit is the only initiative that brings together HR and IT professionals from the unique business landscape of Saudi Arabia, on a singular platform, to discuss the newest trends, ideas and disruptions over a period of two days exclusively dedicated to and focused on HR Technology.

Technology today has revolutionized every step of our lives and Human Resources is no different. The influence of technology on our evolution is paramount to making it imperative for HR to keep abreast with newest developments.

Today, HR is en route to becoming smart HR. Concepts such as bog data, cloud, social media, mobility, and gamification are today’s buzzwords and every organization is keen to embrace them in tackling the key issues of talent acquisition, talent management, change management and employee engagement.

Organiser: About QnA International

QnA International

QnA International creates and delivers business learning and development exchange platforms through B2B conferences, bespoke events and trainings. The company also has an expertise in outsourced sponsorship sales and key account management.

Most popular HR software: How location and business size affects app choices

Most popular HR software: How location and business size affects app choices

Written by Karen McCandless, GetApp.

HR Employee Management

Once upon a time, the HR market was dominated by a few big name players. The likes of ADP, Oracle, or SAP were the main choices available to businesses, large and small. This has all changed, with cloud HR solutions becoming mainstream, and a raft of new entrants shaking up the status quo.

To find out more about exactly what criteria small to medium businesses in different countries are using to select their HR solutions, we turned to data from GetApp users to find out which were the most popular apps.

We found that businesses of 1-50 employees favor cloud-based HR software from startups like themselves, that are new to the market but that promise innovation, and simple pricing plans – often with freemium option.

There is some continuity with businesses of 51-500 employees, with these size of businesses still choosing smaller HR outfits, but ones that have more of a presence in the market, such as Jobvite and Greenhouse.

As businesses grow, it makes sense that they would favor companies that cater towards that end of the market, and that is exactly what we saw with GetApp users of 501-1000 employees. Another interesting trend was this was the first learning management systems featured among the most used apps.

In terms of country HR software usage, British and Canadian users favored apps either based in their own country, or that had a strong presence there.

HR software usage trends

With this in mind, we at GetApp – a startup ourselves with an agile, cloud-based HR system – wanted to find out just whether this would hold true for for our users – whether small businesses in different countries are really choosing these new entrants to the market over the big-name brands.

To test this theory, we used data from the “I Use This” feature on the GetApp website (screenshot below) to find out what is the most popular HR software among our users. (For a detailed methodology on the way that we collected and analyzed this data, see the methodology section at the bottom of the article.)

The approach we took to this was two-pronged: we looked at apps used by different business sizes – varying from solopreneurs to companies of up to 1000 employees – and also at software used in different countries (the U.S., UK, and Canada) to see what insights we could glean.

We grouped together HR apps of all flavors – from talent management, to scheduling, to performance management, and more – to analyze the approach that companies are currently taking towards managing their human resources.

Key Findings:

  • Businesses with 1-50 employees favor newer, more agile HR apps, with lower pricing points
  • Companies with 51 employees and more look for more well-known HR names, combined with innovation
  • Businesses are still adopting point solutions for areas such as recruitment, rather than all-in-one HR apps
  • Adoption of learning management systems is much higher in companies with more than 500 employees
  • Outside of the U.S., companies favor local HR solutions.

Most popular HR software by business size

When splitting HR app usage according to business size, what became apparent was that there is no clear market leader for companies of up-to 1,000 employees. Each size of business had its own preferences, with no runaway leader in any category. This differs from other industries such as accounting, where a few big-name vendors dominate.

There is also no mention of the legacy HR heavyweights that were initially built on premise, such as Oracle, ADP, SuccessFactors (now part of SAP) – or newer cloud-based market leaders such as Workday. Halogen TalentSpace is the only HR app popular among GetApp users to feature in analyst firm Gartner’s Magic Quadrants for HCM or Talent Management, which are focused on the enterprise market. Businesses across the board (up to 1,000 employees) are favoring newer, native cloud software for the HR market.

Where we can see a trend start to emerge is in the type of HR apps used by businesses of less than 50 employees, compared to companies of 51-500, and then again with organizations of 501-1000 employees. We’ll dive into these trends in more depth now.

Businesses of 1-50 employees: startups for startups

When looking at the apps used by businesses of 1-10 employees and 11-50 employees, the most used HR software is consistent, with Zoho Recruit, Breezy HR (formerly Nimble HR), Workable, and Crelate Talent all featuring in the top five for both company sizes.

Delving more deeply to find out why this may be, we noticed that all these HR apps all recent entrants to the market. Breezy HR was founded in 2014, Workable in 2012, Crelate Talent in 2012, and while Zoho as a company was founded in 1996, Zoho Recruit was a more recent addition in November 2009.

All of these apps are natively built for the cloud, cater to small businesses, and market themselves as relatively straightforward and simple software.

Pricing options

Another similarity with the most popular HR software for businesses of 1-10 and 11-50 is pricing. Several solutions offer a free option with limited features, making them useful for startups and small businesses with budget constraints.

In terms of Zoho Recruit pricing, it currently (as of April 2017) offers a free plan for one recruiter with basic ATS functionality, such as scheduling interviews. Even for the most expensive price plan, it’s only $50 per recruiter per month. Zoho can also be seen as a safe pair of hands, with its long company history and large suite of products.

Breezy HR keeps its pricing plans simple, with all of them including unlimited users and candidates. The plans differ according to the number of active jobs. As of April 2017, for one active job, the HR app is free.

While Crelate Talent doesn’t offer free options, its pricing is affordable for small businesses.

Hiring platform Recruitee – one of the most used apps by businesses of 11-50 employees- doesn’t offer a free version, but has competitive pricing options covering the varying needs of different company sizes. It’s still a very new company – set up in mid 2015 – but has already been garnering a lot of positive coverage in publications such as Entreprenuer and Inc.

Workable doesn’t cater solely for this end of the market, but its simple tools, mobile-first approach, and raft of integrations make it an attractive choice for small businesses.

All-in-one HR

Zenefits is the only piece of software on the list (third most popular HR app by businesses of 1-10 employees) that isn’t strictly targeted at simplifying recruiting or talent management. While it originally focused on benefits management, it has since expanded to cover onboarding and employee scheduling. Despite experiencing several scandals and setbacks in 2016, Zenefits emerged as the most well-funded HR tech company in 2016.

Key takeaway: Businesses with less than 50 employees broadly go for the same kind of HR apps that are cloud-based, have affordable pricing plans (often with a free version), and are relatively new to the market.

Businesses of 51-500 employees: innovative new entrants

As the business size grows, the trend swings towards HR software that, while more established than the above startups, is still making waves in the industry due to its innovation and high-profile customers. The most popular HR software for this company size also caters for a wider range of business sizes than the favored apps for businesses of 50 and under.

Jobvite and Greenhouse are two applicant tracking and recruitment apps that are popular with companies of between 51 and 1000 employees.

While Greenhouse is a relatively new entrant to the market (founded in 2012), thanks to a raft of positive media coverage and some high profile customers (Airbnb, Evernote, and Pinterest), it has already made a name for itself in the recruitment industry. Part of Greenhouse’s strategy is based around having an open platform that easily integrates with any other tool you might use for recruitment.

Analytics-driven recruiting platform Jobvite has been around longer (since 2006), and is aimed at both small businesses and enterprises. The app also boasts an impressive client roster, including LinkedIn, Spotify, Etsy, and Verifone. Jobvite’s product offering aims to cover everything from sourcing to hiring to onboarding.

The company continues to innovate by partnering and adding new features, such as integrating with Accurate Background services to allow companies to carry out employment background checks, drug testing and verification services from within Jobvite.

Workable is the one constant across businesses all the way up to 500 employees, as it is another app that caters for a wide range of business sizes.

HR suite adoption

One trend that we see solely with businesses between 51 and 200 employees is a higher adoption of all-in-one HR suites, with BambooHR and Namely both ranking in the top five.

This contrasts with the higher adoption of recruitment and talent management suites among smaller businesses, and a focus on learning management systems in businesses of more than 500 employees (more on that later).

Key takeaway: Businesses of 51-500 look for software that caters for a wide range of business sizes, and that may already have well-known clients. They also put more emphasis on all-in-one HR systems.

Businesses of 501-1000 employees: household names

The trend we see as company size increases is to go for software from more established companies that have been on the market for longer. One example of this is Bullhorn, which is favored by companies of 500 employees and over. Bullhorn originally made a CRM for staffing and recruiting firms, before moving into applicant tracking systems.

Further evidence of this is Halogen TalentSpace, which is the fourth most popular app among companies of 201-500 employees. This software, which came to market in 1996, is regularly named as a visionary in Gartner’s Magic Quadrant for talent management. Testament to its success, it was acquired by Saba in early 2017.

Another data-driven recruitment app that is popular with larger businesses is JazzHR (fourth most popular among businesses of 501-1000 employees). Formerly known as The Resumator, it positions itself as a scalable recruitment system, suitable for small businesses but also applicable for growing companies.

Emergence of LMS

Learning management system software makes its first appearance in the most used apps among companies of 501-1000. Mindflash and Accord LMS’s appearance on the list at this points suggests that smaller businesses may be slower in their adoption of LMS.

Key takeaway: Businesses of 501 employees and up tend to favor more well-known and established HR software, and they also start recognizing the importance of learning management systems.

Most used HR software by country

Using data from the U.S., UK, and Canada across all businesses from 1-1000 employees, we found that Breezy HR and Zoho Recruit were particularly popular among GetApp users in all three of these countries.

Zoho Recruit was a favorite in both the U.S. and U.K. (even placing just out of the top three in Canada), while Breezy HR was popular among users from both the U.S. and Canada.

America first

Given the wide range of choices for apps headquartered in the U.S., it was interesting to see India-based Zoho Recruit there in addition to U.S.-based Breezy HR and Crelate Talent.

Canada’s choices

Looking at the choices for Canada, Toronto-based hiring solution Fitzii is popular among businesses in this country, suggesting that there is a preference for local software providers in the HR market, or at least those that have a strong presence there.

Further confirming this, Bullhorn is the second most popular HR software in Canada. While it may not be based in Canada, it has a strong presence in the country, through its partnership with Workopolis, which is Canada’s leading career website. It also already provides applicant tracking functionality to many leading firms based there, and has an office in Vancouver.

UK-based software

In the UK, aside from Zoho Recruit, Workable and Calamari leave management software are the most popular HR software in the country. While neither of these companies are British, both were founded in Europe and have a strong presence in London.

Workable was founded in Athens, but opened an office in London shortly after, before expanding to New York, Boston, and now San Francisco.

However, a plethora of British-based HR software companies such as CakeHR, CIPHR, WeThrive, PARIM, and Findmyshift just missed the top three position, further highlighting the preference for local companies in the market.

Key takeaway: In markets outside of the U.S., countries are showing a strong preference for local software to help manage recruiting and HR needs.

Conclusion

Our findings from analyzing data from GetApp users indicated that the original hypothesis was true: that small to medium businesses in the HR space are opting for new entrants to the market over the more-established brand names, and that they are choosing apps built for the cloud.

Our data also indicated that these companies prefer HR apps based in their own country, or that have a very strong presence there.

If, after reading this report, you’d like to invest in a cloud-based HR app for your business size or from your country, we can help. Here are the next steps.

From our list of HR apps, you can filter by country:

You can also filter by business size:

For a full list of the most popular HR software in these categories, or to reuse any of the charts above, please contact karen@getapp.com.

Methodology

To put together this report, we analyzed data from signed in GetApp users that had selected the “I Use This” option for a particular app on the site. We counted the number of individual users that had selected these apps and segmented according to business size and country. The sample size for each segment differed and we used absolute numbers on our graphs to represent the most used. We then looked into the three most used apps per country, and five most used per business size.


Source: Most popular HR software: How location and business size affects app choices (GetApp report)

Paycor Workforce Insights

Paycor Workforce Insights

Paycor

Paycor Announces Workforce Insights to Provide HR Leaders with Deep Insights and Real-Time Analysis of Employee Data

New Data Visualization Solution Extracts Rich and Actionable Insights from People Data to Bring Valuable, C-Level Insights to Key Business Stakeholders

CINCINNATI – April 11, 2017 – Human Capital Management company Paycor today announced Workforce Insights, a new data visualization solution that extracts rich and actionable insights from people data to bring valuable C-level and operational insights to key business stakeholders. This new tool provides highly interactive dashboards that allow users to explore workforce issues and discover trends, so they can identify and solve business problems more quickly and effectively.

According to Bersin by Deloitte Research, there was a 120 percent growth in companies correlating people data to business performance in 2016. Merely mining HR data is no longer enough. It has become an operational business imperative for today’s organizations to extract actionable insights informed by data. Paycor’s Workforce Insights is a new, modern way for small to mid-sized businesses to meet this need.

Workforce Insights is a highly graphical and aggregated interactive data visualization solution that helps track and successfully manage business issues. This new solution instantly identifies key insights without having to import or export data, and provides actionable, results-driven charts detailing information compiled across HR, time, payroll, benefits, talent acquisition and onboarding data, so users can spend less time searching and more time focused on solving important business issues. Customers can easily tailor dashboards to fit their unique needs for a full view of their business. Users can take actions directly from the dashboards.

Paycor Workforce Insights

Key benefits of Workforce Insights include:

  • Identify actionable insights – Data from HR, time, payroll, benefits, talent acquisition and onboarding allows companies to identify issues, uncover correlating patterns and solve people problems such as performance issues by department or location.

Paycor is headquartered in Cincinnati, OH, but has sales representatives and offices across the country. To learn more about Workforce Insights and how Paycor can help your business, please visit https://resources.paycor.com/workforce-insights.

Availability

Workforce Insights will be generally available in May 2017. For pricing information, contact your Paycor sales representative or visit https://go.paycor.com/Contact-Sales.html.

Supporting Quotes

“We built Workforce Insights based on feedback from CEOs, CFOs and HR directors of small to mid-sized businesses across all industries,” said Zhen Tao, Chief Technology Officer of Paycor. “Workforce Insights provides HR and operational leaders with a holistic view of their people data and delivers valuable, actionable insights to key business stakeholders, further demonstrating the true value HR technology brings to the organization. This solution is a data revolution for companies looking to improve the way they understand their people data and use such insights to drive operational improvements.”

Supporting Resources

About Paycor

Paycor is a trusted partner to more than 31,000 small and medium-sized businesses. Known for delivering modern, intuitive recruiting, HR and payroll solutions, Paycor partners with businesses to optimize the management of their most valuable asset – their people. Paycor’s personalized support and user-friendly technology ensure that key business processes, including recruiting, onboarding, reporting, timekeeping, compliance and payroll, run smoothly. Paycor’s people operations solutions are recommended by today’s most innovative brokers, bankers, and CPAs. Learn how Paycor can transform your business by starting a conversation at http://www.paycor.com.

FOR MORE INFORMATION

Katy Bunn
kbunn@paycor.com
513.307.6392

MEDIA CONTACT

Tanaya Lukaszewski
paycor@kulesafaul.com
916.712.3791

2017: The Year of Employee Engagement

2017: The Year of Employee Engagement

Saddle up, 2017—we’ve got a lot to catch you up on!

First thing’s first: there’s a new Twitter-wielding President in town.

Second on the agenda: We lost too many noteworthy artists and influencers in 2016; so it’s on you to knock that off.

Third: there are these things called “millennials”—yeah, I know, nobody really has a firm grasp on the meaning. But you, my young, doe-eyed 2017, are all about getting this generation engaged and excited, pushing them to their limits!

Are you ready, 2017?

Because millennials are.

But they’ve been the ire of bad publicity for their job hoppiness and perceived disconnectedness from work.

…even after the office installed its fourth swirly slide.

The audacity.

But the nice thing about hindsight is that we can all look back and laugh, and maybe weep a little, at all the resources wasted on ball-pits, nap rooms, and arcade parlors.

Because, in hindsight, we can see where the problems emerged. Like, for instance, how it’s a bit insulting to spend money on frivolous niceties instead of the hired talent.

That’s where YOU come in, 2017!

Millennials WANT Professional Development Opportunities

Can somebody hand me a megaphone? Because a lot of management teams are dragging their feet on this.

Ahem… MILLENNIALS WANT PROFESSIONAL DEVELOPMENT OPPORTUNITIES.

Sorry for the yelling.

But it’s so very, very true.

A recent Gallup poll found that 87 percent of millennials, in fact, say development is important in a job. This factored highly into their attitudes toward retention too. And though they are practically yelling from the rooftops for growth opportunities (more so than any previous generation, mind you), most organizations simply aren’t listening.

In their defense, it is tough to hear over the sound of drills fastening bunk beds to walls (a huge liability).

But here’s the thing: the millennial workforce has matured. They simply aren’t quite as interested in “perks” as once believed. Forbes recently examined some Millennial (and Generation Z) workplace expectations and, under “workplace environment”, found that the majority wanted workplace flexibility.

Meaning they didn’t even want to be there all the time to utilize those really cool slides.

This really shouldn’t be shocking news. There are some very strange myths about millennials floating around cyberspace, but Forbes, again, dispels them using Occam’s razor.

In this Forbes article, you won’t find any nonsensical, conjured up perks to attract and retain millennials. The maturing workforce finds value, instead, in employee development and principles on which the organization was built.

In short: ensuring millennial employees are given the tools to excel each day, with potential for leadership nurturing, is a huge win for any management team.

How Should Organizations Increase Millennial Engagement?

Glad you asked, 2017!

In the past five years, there has been growth in employee development, however the oversight is lacking. Depending on the source du jour, professional development occurs informally at a rate somewhere between 70-80%.

The issue arises that the training millennials are receiving is not on track with the organization’s goals, growth, or principles in mind. And without context, millennials—and employees at large—are less likely to find value in any training mechanism.

Employee development starts with the foundations from which the organization was built. Take, for instance, the employee development strategies of Balance Point, a company that “prides itself on providing excellent customer service.”

In understanding this, their team collaborated in sessions to “hone in [their] people skills and… boost camaraderie and overall morale.”

Tailoring professional development to the organization’s foundations allows employees to focus on “the big picture” while strengthening the required skills to meet those goals.

But it simply cannot end there.

Technology to Keep Millennial Engagement Thriving

The near-constant evolution of Human Capital Management systems (HCMs) now emphasizes the employee’s journey as integral to the successes of the organization. Formal training and development opportunities are found in most HCMs, and should be integrated into the employee experience for greater engagement and retention.

The number of organizations implementing formal, streamlined training mechanisms will likely rise throughout 2017. The Employee Engagement Series conducted by Kronos, courtesy of Yahoo Finance, found that 95 percent of HR leaders admit that employee burnout is negatively impacting the workforce.

To counteract this disastrous figure, organizations will push for more ways to engage and retain talent, particularly millennials, who have raised their collective hand to its importance. It is time for management to heed the call and give them what they truly want.

Professional development may seem like another waste of resources (some organizations say, while on the phone with an espresso machine service technician) but the impact on retention, employee satisfaction, and leadership development will likely pay dividends.

If millennials are asking to be developed, the only logical solution is to give them precisely what they want.

Ok, 2017. Did you get all that?

Now take the ball and run!

And don’t you dare even think about touching a single angelic hair on Betty White’s head.


If you want to share this article the reference to Todd Giannattasio and The HR Tech Weekly® is obligatory.

Why HCM

Ever wondered why do companies invest top dollar in HCM applications and then spend on maintaining them, what is the value it brings to an organization, why use it all?..

To tackle these questions and to understand why HCM, i.e. Human Capital Management applications, are basic blocks in the architecture of any organization’s IT landscape, let us look at the features that makes a HCM application what it is and how it empowers employees and HR personnel alike in an organization.

Why HCM

Ease of use: Feature rich and in some cases widget rich HCM systems come fitted with a simple user interface, imagine having to struggle to use and navigate through an application, no one wants that kind of negativity in their lives, the screens always meander towards simple, intuitive and an easy to use and navigate layout. The buzzword here is User Friendly.

Manage a global & dynamic workforce: Organizations are spread across continents with countries having varied tax regulations and rules. HCM systems provide features that support taxation, statutory deductions and year end processing of various countries. Also when employees get deputed and move on to foreign shores, a HCM system enables tracking such movements and related details.

Accommodate industry standard HR processes: Along with the obvious ability to hire employees into the organization, maintain their personal & employment data and record changes as applicable and then process termination on employee exit, HCM systems also enable calculation of periodic benefit deductions, calculation and payment of bimonthly/monthly salaries subject to the home country regulations, payouts of AdHoc bonuses. And employee data from the HCM system of an organization is published to other enterprise applications like Finance, Supply Chain Management etc.

Another group of HR processes that target employee talent management enable recording job related competencies of employees, detect gaps in the employee competency profile vis-à-vis the employee designation and track bridging of the gaps through a structured learning and certification path, HCM systems can also help map and track career plans for employees in an organization and if required create and monitor succession plans as well.

Employee work hours and In and Out times used for billing purposes can also be recorded, monitored and maintained in the HCM application.

Employees and their managers can work together on creating performance goals annually or bi-annually and track the progress and closure of the same with feedback and ratings as relevant.

Employees can also update changes in address, changes in martial changes, child birth/adoptions, view pay slips, view benefits offered by the organization and make choices and even see deductions as they happen, etc.

Anytime anywhere access: This happens to be a very important value-add, mobility is almost a way of life as evident in the past few years, people want the option to access data, approve requests and extract reports while on the go, so a HCM system is smartphone and tablet compatible has a definite edge in the market.

HR Analytics support: As your organization grows and accumulates data, analyzing this data to identify patterns and trends is an all-important activity, HCM systems provide text & chart based reports to support decision making and also ability to interface with external business intelligence tools if your organization uses them.


If you want to share this article the reference to Bhuvana Rao and The HR Tech Weekly® is obligatory.