With the growing numbers of employees and aspiring professionals establishing their place over the globe, human resources are in the limelight today! This has led the development of human capital management (HCM) softwares for companies to have a well maintained database of work forces around the world. The software not only claims to bring forth better efficiency in skill-force management at a lesser price, but also heightens employee satisfaction.
HCM brings about a holistic approach to workforce management. It is a software/cloud service that will look into your company’s payroll, talent and performance management, recruitment and at the same time help in career development of your employees with appropriate training. In the past 18 months, it has proved to be one of the most thriving and versatile section of the enterprise software market.
The boosting of the talent management sector has led to merge various recruitment and performance management companies, including some big software enterprise giants! SAP AG has acquired the talent management group SuccessFactors for $3.4 billion, Oracle Corp. has taken Taleo for $1.9 billion and IBM too, is now owners of Kenexa for $ 1.3 billion ONLY! Now, the question arises, Why are high-tech companies spending so much money for these talent management groups? The answer is COMFORT! With recruitment applications identifying your right candidate with just a few clicks, you are bound to fall for these talent management groups!
Not only recruitment, with HCM you can manage your employee’s salary structure easily and at the same time, provide them with various self-service options! No longer will you find your employees standing outside your cabin with leave requests in hand causing a lot of chaos. Their HCM accounts will help them get their way! You can also set your employees with company specific goals and keep track of their advancement as well.
It is very important for every organization to maintain the quality of their employees in order to attain a respectable position in the industry. HCM makes that maintenance better and easier!
According to Josh Bersin, the founder of the Bersin HR market research firm by Deloitte, “As businesses around the world expand in 2013, they will face a growing shortage of talent and leadership, it will drive an accelerated need for business agility, career development and talent mobility programs, leadership development and re-engagement of the workforce.” Deloitte also claims that companies with proper talent management generates 26% more revenue from every employee than their peers. This has led to various small or big organizations to implement various HCM systems and social media applications like LinkedIn for recruiting and managing their employees. For example, SuccessFactors are serving Kimberly-Clark and Taleo includes Hyatt Corp in their list etc.
But along with all the pros of HCM, Mr. Bersin also warns that, “Our research does show that talent management software does not create talent management.” So, it is essential for organizations to continue thinking of new ways of hiring, training and managing their employees everyday!