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By: Pascal PERRY

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HCM Software Functions & Features

Human Capital Management (HCM) software helps a company better acquire, manage, and optimize is workforce. HCM software offers 1,000+ features and functions including:

  • Developing individual capability
  • Building workgroups and culture
  • Motivating and managing performance
  • Shaping, managing, and retaining the workforce

Company executives, managers, and employees often overlook the power of HCM and its impact on the execution chain within the organization, hence how HCM solutions can help the organization. You could try to come up on your own with the list of HCM requirements you need to evaluate and compare HCM systems offered on the market, and then to identify the best HCM for your small-business or multinational company. The other solution would be to hire a HCM consultant to do the job but it will still cost you time and money. Or you can merely buy the list of HCM software requirements he would use as a template, project after project.

How to speed up the HCM requirements gathering process and select the best HCM software for your small-business, national or international company?

The answer is to download the comprehensive list of HCM functions and features.

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WHAT IS HCM SOFTWARE?


The research firm Gartner defines Human Capital Management (HCM) systems as a set of applications that provide organizations with specific competencies and practices related to people resource management, which is implemented in 3 segments:
  • Workforce acquisition
  • Workforce management
  • Workforce optimization

HCM software covers operations-support and personnel development processes such as:

  • Core administrative support:
    • Personnel administration
    • Benefits administration
    • Payroll
    • Portal/employee self-service
    • Service center
  • Strategic HCM support:
    • Workforce planning
    • Competency management
    • Performance management
    • Compensation planning and strategy
    • Time and expense management
    • Learning (education and training)
    • Recruitment (hiring and recruitment)
    • Onboarding
    • Contingent workforce management
    • Organization visualization
  • Other HCM:
    • Reporting and analytics (workforce analytics)
    • Workflow

The HCM software comparison report can save you up to 90% of the time you would have otherwise spent comparing all the HCM solutions from scratch.

The HCM Functions & Features comprise the following elements:

  • Core HR 3 function and features

    Core HR includes the HR system of record that combines HR transactions, processes, and data.Main capabilities also include payroll management, benefits management, workforce management, and training management. Core HR, HCM Functions & Features
  • Employee Self-Service 8 function and features

    Self-service functionality allows employees tomanage profile information- i.e. skills, competencies, education, etc. Managers and HR staffcan update information about employees, such aspromotions,salary changes, terminations, etc. Employee Self-Service, HCM Functions & Features
  • Talent Management 4 function and features

    Talent Management softwareis designed to attract, develop, motivate, and retain high performing and engaged employees.With the help oftalent management functionality companiescan better plan human resource utilization todeliverexcellence and successfully meet business goals. Talent Management, HCM Functions & Features
  • Product Technology 5 function and features

    This group of criteria defines the technical architecture of the product as well as the technological environment in which the product can run successfully. Criteria include product and application architecture, software usability and administration, platform and database support, application standards support, communications and protocol support and integration capabilities. Relative to the other evaluation criteria, best practice selections place a lower relative importance on the product technology criterion. This apparently lower importance is deceptive because the product technology usually houses the majority of the selecting organization's mandatory criteria, which generally include server, client, protocol and database support, application scalability, and other architectural capabilities. The definition of mandatory criteria within this set often allows the client to quickly narrow the long list of potential vendors to a short list of applicable solutions that pass muster relative to the most basic mandatory selection criteria. Product Technology, HCM Functions & Features
  • Workforce Management 6 function and features

    Workforce management enables organizations to efficiently plan and organize their labor resources. It helps employers assess part-time employee labor, evaluate and project the contribution from individual employees, and track time and expenses. Workforce Management, HCM Functions & Features
  • Talent acquisition 11 function and features

    Many milestones are achieved from the time a job posting is created to the time the employee is hired and onboarded(from sourcing to onboarding).Talent acquisitionfunctionality provides the ability to attract, select, and hire the right people with the right skill sets, as well as track the information regarding their recruitment to facilitate the onboarding of new hires. Talent acquisition, HCM Functions & Features

BENEFITS OF HCM FUNCTIONS AND FEATURES

Use the list of functions and features for Human Capital Management (HCM) software to generate the components of the Request for Proposal (RFP) you will send to HCM software vendors to solicit a proposal:

  • the business, functional, and technical HCM requirements you will layer in the Work Breakdown Structure (WBS) as part of the Statement of Work (SOW)
  • the weighted HCM evaluation criteria you will used to evaluate and compare HCM proposals, and then select the best HCM system for your needs

The list of HCM requirements will also help you build decision-support tools that rationalize hence facilitate your decision-making process:

  • the HCM compliance matrix that will allow you to deem a HCM vendor responsible and a HCM proposal responsive
  • the HCM decision matrix that will help you identify and select the best HCM system

HCM software functions and features are used in the WBS to

  • delineate the scope of work, namely the implementation of HCM best practices as the business processes underlying strategy development, value creation, multi-channel integration, information management, and performance assessment
  • make sure HCM vendors and their customer communicate on the same grounds for the sake of the project success and avoid finger pointing in case of issues
  • track and report the implementation progress to the HCM acquisition project stakeholders
  • be used as an insight at each step of the HCM software selection process

BENEFITS OF HCM SYSTEMS

The main benefits, motivations, and justifications of acquiring a HCM system are:

  • align the company's human capital strategies with its missions, goals, and organizational objectives
  • integrate the human capital dimension into the company's budget and strategic plans
  • zap skill gaps as they appear in critical operations
  • ensure leadership continuity by ideating, building, and implementing recruitment, development, and succession plans
  • develop and promote before workforce a culture of a high performance
  • carry on knowledge management strategies sustained by appropriate investment in training and technology
  • make managers and HR officials accountable for efficient and effective workforce management

Last but not least, HCM software may help the company

  • rethink its strategic vision of empowering not only its workforce company wide but also employees individually
  • offer a self-service HR portal to personnel across the company and worldwide
  • drop walls, or at least build bridges, between operational and support departments
  • improve the quality and maturity of supporting the company operational processes, helping the company implement or comply with process improvement approaches, frameworks, and standards like Quality Management (PDCA, 6-Sigma), Agility, Lean, CObIT, CMMI, and ISO-IEC (9000 Series and 15504)

Those typical benefits of HCM systems impact positively such key performance indicators as the job job performance, employee absenteeism, and employee turnover.

Implementing an HCM system provides also such intangible effects as satisfaction at work and sense of belonging, hence commitment to the organization.

HOW TO SELECT HCM SOFTWARE

 

Slecting HCM software is a decision-making process of several steps. First, the decision maker needs to identify the ins and outs of the business problem to be solved. Once the problem circumscribed, the decision maker builds the space of potential HCM solutions, evaluates the capability of each HCM solution to address the problem, then compares them side-by-side to finally identify the HCM solution that best addresses the problem.

Herbert A. Simon (1916-2001), a pioneer in the field of artificial intelligence (AI) and recipient of the 1978 Nobel Prize in Economics, has formalized this process by inferring it from his studies of how decisions were made in business organizations:

Intelligence: What Is The Problem?


The first step of Simon's IDC rational decision-making process consists of identifying the problem that is at the root of the decision to buy, replace, or upgrade an HCM system.

To do so, obtain clear information about the organization's current business processes and problems related to them. Then devise processes the way you would them to work. Based on that information, perform a gap analysis between both current and desired processes, which will allow you to create a list of HCM software requirements (HCM functions and features). Finally, weigh the identified HCM software requirements based on your organization's strategic, business, functional, and technical priorities (from not relevant to critical)

At this first step do not hesitate to use an HCM RFP template, it helps you speed up significantly the lengthy process of building that list of HCM software requirements. The HCM RFP template is a Microsoft Excel spreadsheet featuring multiple levels of evaluation and decision criteria.

Download the HCM RFP Template Now!

Design: What Are The Different HCM Solutions?


The second step of Simon's IDC rational decision-making process consists of building the space of HCM solutions. Only HCM software solutions that are deemed responsive enough in regard to the HCM software requirements specification devised in step 1 will be part of your HCM solutions space.

To do so, identify potential HCM software vendors and their solution by using the list of HCM software vendors in the HCM Software Comparison Report that was already built by our HCM consultants and HCM analysts using TEC Advisor, our online Decision-Support System (DSS). You may also complement it with HCM software vendors you are already aware of or met at an HCM trade show.

Then determine which HCM software vendors are likely to provide a solution by meeting the HCM software requirements specification developed in step 1.

Finally, disregard all HCM solutions which ratings don't meet the priority threshold you assigned to criteria that you deemed critical. The remaining solutions will constitute your shortlist of HCM software solutions. You usually end up with a "Top 10 HCM Systems" or "Top 3 HCM Systems" depending of the complexity of your acquisition project.

Using at this 2nd step an HCM software comparison report helps you speed up significantly the complex process of evaluating, rating, and comparing HCM software solutions. The HCM software comparison report is a table featuring side-by-side HCM solutions of your choice against your HCM software requirements.

Download the HCM Software Comparison Report Now!

Choice: What Is The Best HCM Solution


The third and last step of Simon's IDC rational decision-making process consists of identifying the solution that bests fit your business, functional, and technical needs set forth in the HCM software requirement specification.

To do so, compare shortlisted HCM software solutions side-by-side by identifying all the differences between shortlisted HCM solutions in terms of coverage of your needs and based on your priorities. This is a very complex task that is not humanly manageable because of the high number of evaluation criteria to take into consideration amplified by the number of HCM solutions considered.

To help decision makers select the best HCM solution, Decision-Support Systems (DSS) like TEC Advisor assist buyers in seeking the HCM solution that maximizes the expected utility (UE). Such tools use advanced mathematical analysis based on what-if scenarii and sensitivity analysis, to name but a few techniques.

 

This 3rd and last step is the trickiest because you have to make a decision based on a process that is not humanly manageable because of so many solutions to take into account against so many decision criteria. There are also so many issues at stake: time, money, risks, and your own seat as the decision maker!

So a Decision-Support System (DSS) like TEC Advisor is here to help you speed up the decision cycle, lower the global project cost, alleviate your pain, and secure your decision-maker position by handling the mathematical complexity of the decision and giving you all the tools necessary to make a rational, impartial, and traceable decision.

Use TEC Advisor To Select The Best HCM Software For Your Needs!

TEC Advisor can save you up to 90% of the time you would have otherwise spent figuring out on your own which HCM solution is the best for your needs.

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Functions and Features