Executives are becoming more aware of the vital role that human capital management (HCM) systems play in the success of their organizations. They understand that maintaining market competitiveness and attaining organizational goals depends heavily on their capacity to attract, hire, and retain qualified personnel.
Comprehensive, cloud-based HCM systems enable business leaders to manage all facets of their HR processes, from hiring and onboarding through performance reviews and remuneration.
As seen in Figure 1 from our full report, HR/HCM Adoption Trends and Customer Experience, HCM systems have a high adoption rate. However, three other metrics—investment, ROI, and TCO—are stuck in the moderate range. And, more concerningly, overall customer satisfaction is low relative to other technologies in our annual study.
Because of the difficulties in integrating solutions and quantifying results, the satisfaction level for HCM is still low. HCM technology and service providers are using the cloud and new analytics tools to remedy these shortcomings. By facilitating smoother transitions between other organizational systems and applications, a cloud HCM solution helps address integration issues. Furthermore, newer HCM systems provide cutting-edge analytics and features that might increase customer satisfaction by providing deeper insights into the workforce.
“Adopting HCM systems becomes crucial in a world where an organization’s performance is dependent on its capacity to efficiently manage and utilize its workers,” said Asif Cassim, principal analyst for Computer Economics, a service of Avasant Research, based in Los Angeles. “These technologies enable firms to unlock the full potential of their employees and achieve a competitive edge.”
As digital adoption, automation, and hybrid working become more common, addressing digital skills shortages has become a priority. To bridge the talent gap, incorporating AI, automation, and ML into HCM systems aim to enhance the efficiency of HR processes. AI enhances an organization’s sourcing needs by identifying promising candidates. ML algorithms can sift through resumes and rank candidates that match closely with job requirements. During employment, AI can track an employee’s progression, recommending career paths and identifying potential promotions based on the employee’s goals and appraisals.
Our full report quantifies the current adoption and investment trends for HCM technology, as well as the benefits driving companies to expand their HCM implementations. We assess these trends by organization size, sector, and geography and look at the ROI and TCO experiences of organizations that have adopted HCM. We conclude with practical advice for those planning new investments in HCM.
This Research Byte is a brief overview of our report on this subject, HR/HCM Adoption and Customer Experience. The full report is available at no charge for subscribers, or it may be purchased by non-clients directly from our website (click for pricing).