Recruitment and retention are front and center as businesses continue to navigate economic unpredictability, hiring challenges, and high rates of resignation. With turnover costing $3-$5K on average per employee, companies increasingly lean on HR departments to remain competitive and agile amongst the uncertainty. Single-suite human capital management (HCM) software is quickly becoming the solution for companies of all sizes to address hiring and retaining proactively. This technology can integrate into existing architecture, making its implementation simple and efficient.
HCM solutions are helping businesses tackle these five major trends affecting the industry.
- Reshaping of the talent acquisition process. Improved engagement throughout the candidate lifecycle benefits future employees as much as it does the company. While SMS texting and chatbots are gaining in popularity (though our research has found more candidates still prefer email communications), the future of recruitment will be around enhancing the different touchpoints you have with candidates, such as the use of video. HCM technology enables and can even automate these capabilities for better assessment and vetting.
- On-demand pay. At a time when a large proportion of the country is living paycheck-to-paycheck, paying workers’ wages as they’re earned can be attractive to prospective employees and current staff. On-demand pay is beneficial for businesses with hourly employees who typically experience high turnover. HCM providers like PayActive, for example, can integrate into your existing human capital systems and payout earned wages independent of your payroll or, as is the case with Ceridian Dayforce, manage payroll processing within its more sophisticated system.
- Democratization of people analytics. Once accessible to only the largest of enterprises, today’s HCM solutions provide access to more predictive and prescriptive people analytics than ever before. This data can give even the least technical user visibility into metrics like flight risks and employee sentiment so you can proactively respond to changes. The technology also allows you to automate more administrative tasks, like scheduling, which our research found could save businesses 3 to 6 percent of their labor costs.
- Remote working and hybrid office plans. Is your organization continuing to work from home or setting up hybrid plans for the foreseeable future? Workforce management solutions can help you stay on top of the compliance, tax implications, and health and safety regulations brought on by this shift to remote working.
- Current workforce development and upskilling. Retention is crucial amid a shortage of candidates. Engaging and developing your current workforce helps improve productivity and reduces the need for additional headcount. HCM data can help you measure competencies, keep track of development and learning courses, and match internal candidates to suitable projects or promotions. In fact, one organization Nucleus interviewed reduced its learning investment per employee by over 85 percent by implementing a modern HCM solution.
If you’re looking to get more out of your human capital management software or are in the market to bring on a new solution, there are many options out there to help you meet your business goals and objectives. The best choice for you will mostly depend on your digital maturity as a company, current setup, and investment.
HCM vendors themselves are undergoing extensive research and development and acquisitions to ensure they’re equipped for the future of HR.
Many have transitioned from niche service offerings to complete talent acquisition suites, which is a trend Nucleus predicts will continue.
All these trends point toward a new age of HR. With more robust human capital management software available to a broader range of businesses, savvy HR professionals can use this time to develop proactive action plans and strategies for attracting and retaining talent in what continues to be an ever-changing marketplace.
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ABOUT THE AUTHOR
Evelyn McMullen is a research manager at Nucleus Research, a global provider of investigative, case-based technology research and advisory services. The company’s ROI-focused research approach provides unique insights into the actual results technology solutions deliver, allowing users to cut through the marketing hype to understand the real operational value.