The Three W of HCM. What, Where, When?

What is HCM Software?

Human Capital management software is a cloud-based web solution for companies to utilize their workforce fully. The typical HR & admin functions that were hard to manage for a single person can be done quite effortlessly with the HCM software. Moreover, the software offers a wide range of functions.

The function of HCM software covers recruiting an employee from the time he works for the company to retirement. Since the software is cloud-based, it offers unlimited opportunities to manage the talent, productivity, costs, analysis, and insights on how to get the best workforce from their employees.

We will discuss many other benefits of using HCM software instead of sticking to the old-school HR system later in this article. So, keep scrolling.

What are the HCM Software Applications?

The principle of transforming Human resource management to Human capital management is to give a new meaning to the resources you have in your business. And the main focus is to maximize the value of the leading asset – your employees.

Since it is difficult to handle the entire HCM system with just one technique, the HCM software provides a variety of applications that you can use. They are HRIS, and HRMS. Let's give you some info about them.

HRIS:

The complete form of HRIS is the human resources information system. This software helps you collect, organize, maintain and manage the information of all an industry or company employees in the most secure way.

The software is also programmed to analyze and process the information and catalog them to appropriate policies and procedures. In this method, the authority can strategically ensure standardization of the human capital management and the value of their work.

HRMS:

HRMS refers to the Human Resource Management System with several applications with various features to carefully manage and utilize the workforce.

The standard features of HRMS are managing administration, employee record centralization, developing skills through training, automation of reporting and analysis of the work and giving rewards depending on their task completion skill, planning and talent management, and many more.

For example, using the best payroll software in Bangladesh aids HR in maintaining and providing the employees with their payroll at the end of every month.

How Does HCM Differ from HR?

HCM is the strategic approach to managing employees throughout the time they work for a company. Human resource management software in Bangladesh, for example, PrismERP HCM, is used by most industry owners because it covers the broader sector and much more than the typical work of HR & admin.

On the other hand, the traditional HR approach is only to hire an employee, managing the payroll, attendance, and other compliance records. For example, PrismERP HRM is one of Bangladesh's most popular payroll software.

Therefore, if you are looking for ways to improve your company's productivity, you should choose HCM software over HRMs that only manages employee data.

What are the Benefits of HCM Software?

If you look at the overall picture HCM software creates for a company, you will see that it works from the beginning of hiring the perfect employee for the job. After that, it also ensures that the required skill is present for the project.

By doing so, HR can ensure he can manage the employees effectively and simultaneously increase the company's productivity.

Here are a few other benefits HCM software offers:

Improve the hiring procedure

With the help of HCM software, the analysis of potential candidates' skills becomes easier for HR. Companies can hire talented employees, and the employment procedure becomes faster.

Match job requirements to employee skills

The most important benefit of adopting the HCM software is to utilize the workforce. After using the applications, it is possible to appoint the employee with the skill for a specific task and define the competence gap.

Boost natural development

By implementing the HCM software in the hiring and providing projects while keeping the employee's skill in mind, improvement of any industry is possible.

Moreover, performance evaluation and analysis if the software is effective for the business or not can be found with the HCM software.

Facilitates smarter career planning

With the advancement of data entry of every employee's performance and skill, it is now possible to have a cloud-based system.

Corporate HRM helps both the employees and employer to analyze the previous implementation. And the employee can find out their flaws and where they can improve more.

And the employer can arrange skill development seminars and training to bring out the best in their employees.

Enhance human resource management

The last and most crucial part of HCM is an improved management system. No given company can boost their productivity and revenue if they ignore the power their employees hold.

For example, Payroll management software, Attendance software, and Popular Payroll software in Bangladesh are used in various sectors such as Automobile HRM and Textile HRM.

What are the Potential Drawbacks of HCM Software?

Although the features HCM offers are seemingly beneficial, like the other side of the coin, it might have some drawbacks that you need to consider.

They are:

Expenses will go higher

Suppose you want to install top payroll software in Bangladesh to maintain your RMG HRM (Ready-made garment). You have to install the HCM software in the system and reorganize everything.

The process and monthly subscription per employee can exceed from 3000 BDT to 5,500 BDT (depending on the number of employees). Therefore, the cost will surge.

Need time to show the result

After investing money in the software and new strategic system, you may have to wait for some time to get the result of using the software.

For example, in Manufacturing HRM, the employees work for the whole manufacturing process, and schedules can change. So, the adaptation takes time.

Possibility of cyber attack

The Attendance management software and other applications where all the employee data are stored are at the highest risk of cyber-attack. If a security breach happens, it can cost a fortune for the company.

However, the boosted revenue and advanced security system will outweigh your patience for the system to work and increased investment.

Conclusion:

Before drawing the end line, we want to remind you that growing your business in this fast-paced world requires nothing but intelligent decision-making and the use of technologies.

By incorporating the HCM system, you will have one less thing to worry about: how to improve your employees' productivity.

Human capital management software will give you clarity, a top-notch workforce, quick hiring, and overall employee satisfaction because it is a cloud-based database system.

With the HCM software, you don't need to wait hours for the authority's approval; it will only take minutes. Therefore, your industry's future success is now in your hands. You only need to take the initiative that the moment demands and profit from all it offers.