Effective human capital management (HCM) is what makes an organization a well-oiled machine. Your employees aren’t interchangeable, easily replaced cogs; collectively, they are the linchpin – the most critical resource for functionality and success. Just like any other type of resource, your workforce requires specific management functions, hence, the need for an individual or department to oversee human resources (HR). But what employees expect from their employers is continually evolving, so it goes well beyond the bounds of resource management.
As your greatest asset and quite possibly your greatest expense, your workforce is not just a resource – it’s also an investment, an asset that can increase in value over time. Just as you would with any other investment, you want to see a positive return. Your investment is in human capital, the economic value your employees bring to your business by way of their knowledge, abilities, experience, and skills. Human Capital Management (HCM) is the set of processes you use to acquire new talent, train and develop your workforce, enable employees to perform their duties, and empower them to do their jobs well.
Human capital economics isn’t a new idea. In fact, in 1776, Adam Smith wrote about human beings as investments that generate returns in An Inquiry into the Nature and Causes of the Wealth of Nations. In the early 1900s, “industrial betterment” was often used to describe an employer’s plans to encourage employee loyalty and stabilize the labor force. Organizational management and industrial psychology were not integrated into HR practices until the 1960s. The Equal Pay Act of 1963 and the Civil Rights Act of 1964 also brought HR a compliance focus. But the most radical shift began near the turn of the century with the introduction of new and emerging technology.
The roles of HR and payroll professionals are no longer narrowly focused on administration. Balancing an exceptional employee experience with optimal productivity and operational efficiency takes strategy. Each process performed through HCM is also bilateral in nature, encompassing both administrative and strategic functions. Why the change? Competent HCM enables an organization to successfully pursue human capital initiatives, the goals the organization cannot reach without the participation of its workforce. Ultimately, attracting and retaining the right talent allows you to increase your business’s value and gain a competitive advantage.
Today, comprehensive, effective HCM involves:
- Workforce planning
- Compensation planning
- Performance management
- Workflow management
- Employee service and self-service
- Recruitment and hiring
- Onboarding and training
- Payroll
- Time and attendance
- Benefits and retirement services
- Reporting and analytics
- Compliance
Employers need technology that allows for a comprehensive and convenient focus on the entire employee lifecycle and improves efficiency. To help create a top-notch employee experience while allowing leadership to keep their focus on strategy, Commonwealth Payroll & HR expertly serves its client’s employees using isolved People Cloud.
Want to learn more about how Commonwealth turns even the most grizzled payroll & HR leaders into adopters of friendly and evolutionary workplace technology?
Check out our previously recorded webinar, Nail Your Employment Processes with Commonwealth’s isolved People Cloud. In this session, Jeff Plakans, Founder and President of Commonwealth Payroll & HR, discussed the impact that isolved People Cloud has had on Commonwealth’s clients and offered a deep dive into some of the more exciting and transformational features of the solution.
With isolved, your HCM is powered by an award-winning machine!
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Contact Commonwealth Payroll & HR
Since becoming one of isolved’s earliest certified network partners in 2010, Commonwealth Payroll & HR has solved numerous employee transactional challenges for our clients. Contact us today to find out more about how Commonwealth Payroll & HR can help with your HCM needs.
*The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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