Why Invest in HCM?
How Integrated HCM Systems Help Enterprises
Integrated HCM systems helps accomplish the primary goals of the HR teams by automating the processes of accessing, storing, and managing all HR-related information by connecting multiple systems and data sets. Hence, companies can rely on these systems for everything right from talent acquisition, employee onboarding/offboarding, identities management, learning management, and succession planning.
In addition, there are several benefits of implementing an all-integrated HCM system in your enterprise.
1. Smoother Employee Onboarding
Consider the onboarding checklist of a new hire, which includes setting up the employee ID, creating a new email account, providing license and access to systems based on roles, ascertaining organizational hierarchy, adding payroll information, and what not. This formal set of processes typically consumes the entire day of the HR and IT teams, which leads to ineffective onboarding.
However, your HR and IT teams can leverage an integrated HCM system to master onboarding without losing productivity or feeling overwhelming due to tedious, repetitive processes for each new hire. It is crucial to provide a smooth onboarding experience to new hires and the right HCM technology will help you just do that.
2. Timely Offboarding
Employee departures throw various challenges regardless of whether they leave an organization due to better career moves, family obligations, retirements, or layoffs. Just like onboarding, offboarding has its own agenda to be accomplished such as discontinuing email accounts, removing from payroll register, revoking rights and access to systems and data, and much more. Utilizing an integrated HCM system can align and automate offboarding tasks for both HR and IT teams with greater efficiency and in a timely manner.
3. Cost and Resource Savings
A 2019 EY report calculated that each data entry action performed without a self-service HCM platform has a mean cost of $4.51 in labor and other expenses.
For a large organization, employee hiring and separation is an everyday task. Imagine the operational costs and resources required in doing the same job every day. With the right integration, HCM systems can automate repetitive and formal tasks like creating a ticket for new email setups, creating licenses, etc,. saving thousands of dollars and time spent in everyday operations.
4. Better Security with Identity Provisioning
Since employees get access to systems and data as per the roles assigned, there is more security and integrity of data. With appropriate identity creation in the HCM system as per their designation and profiles in the Active Directory, they are assigned access to information they need and not to the information they should not see. Thus, enterprises can curb unauthorized and untimely access to critical information with the right identity management.
5. Enhanced Employee Experience
With faster onboarding and access to the right information and systems from day one, the employees have a better first-day-at-work experience.
With SSO (single sign-on) and multifactor authentication, employees can log in to multiple systems with a single login to update information in the employee portal and access documents from the company wiki. Thus, they can start working with minimum guidance. With integrated and built-in workflows, the transfer of employee data from disparate systems takes no time. Hence, employees do not have to spend their first day in paperwork.
6. Scalable HR Processes
7. Reduced Manual Processes
Imagine the time and efforts of an HR doing the manual data entry to record the data of each employee. HCM software reduces manual processes by extracting and storing information of employees from the resumes and databases collected from other systems. Thus, HR processes can be made more accurate and efficient by automating and integrating system-wide tasks.
Moreover, with employees having access to these systems, it helps them manage their information without adding the burden on the HR teams for the administration.
8. Better Compliance
With the introduction of GDPR (General Data Protection Regulation) in some countries, the regulatory demands on HR have increased. An integrated HCM software helps fulfill these obligations by providing the right data from the right sources.
Also, automation leads to fetching of data to autofill office documents including tax documentation, insurance, benefits. This leads to better compliance from day one.