Using HCM Software | How Beneficial it is?

Long-held preconceptions about the human resources department are changing. The team is increasingly being recognized for its important role in creating strategic value for the business and so is a technology like PeopleGuru HCM software.

There is a connection between that view and the broader use of HCM software, with the survey saying that elevating the perception of HCM and investing in specific approaches to HCM technology strategy, integration, and change management correlate to 15% year-over-year increases in overall outcomes.

Why HCM Software?

The principles of human capital management dictate that most people within an organization will interact with HCM software at some point during their careers. It is used by employees to manage the many important matters that aren’t directly related to their jobs but are part of the employee experience, including time off, benefits, payroll and more.

Cost Savings

Managing payroll and benefits costs is a top priority for all organizations, given that salaries, payroll taxes, and benefits are generally among the largest line items. HCM management systems provide human resources teams with a number of ways to save, without cutting back on the employee experience. Take the rising cost of health insurance. By better tracking data around benefits, a company has more leverage to negotiate rates with carriers.

Reduced Errors

Automating payroll is a high-value area for small businesses because manual data entry results in the most payroll errors. Besides the time required to correct mistakes, errors in tax withholding open the company up to IRS penalties.

Attendance Monitoring

Timecard fraud happens, and it costs organizations time and money. Fraud can run the gamut from taking long lunch breaks to buddy punching, when a friend clocks in for an employee running late, to billing for hours that weren’t actually worked. Time clock systems require employees to swipe their employee IDs to punch in, which eliminates some of those issues.

Simplified Benefits Administration

Keeping up with changing government rules and regulations and the time required for administration and paperwork is also challenging. Benefits administration functionality in HCM software automates calculations of benefits eligibility, allows self-service by employees to pick the coverage, and integrates with payroll to make sure the correct amount is deducted from the employee’s paycheck. This is more accurate and saves time.

Metrics

Access to metrics for analysis is critical for HCM cost management, compliance risk management, and improved employee engagement. The top source of that information is the HCM system. In fact, Oracle research shows that HCM may be overtaking finance as an analytics-driven function. HCM teams are using data to determine future workforce plans and predict turnover in critical roles.