Innovation to change the world of Human Capital Management

Innovation to change the world of Human Capital Management

Human capital management, or HCM as a platform, is a technology that provides great advantages to businesses regardless of their size. This technology is carefully designed to meet the unique needs of all companies and boost employee engagement.

Cloud adoption in the world of HCM is the future of business, and more organizations are migrating their HR processes to the cloud. With cloud HR software that enables saving information directly, businesses no longer need mass filing cabinets and do not need to worry about data usage slowing down computer functions.

Here are a few major innovations that will shape Human Capital management.

1. Technology

Technology

Technological disruptions in the industry are quite evident. User experience is being defined by technology, and the experience can no longer be neglected when it comes to designing internal systems. Let’s take an example. Let’s say that an employee today has access to the best social media application on his laptop and phone. Why should he then settle for a poorly designed user interface in the case of internal company applications? Human-centered design, along with technology, will be key in redefining the HCM landscape.

2. Changing workforce composition

Changing workforce composition

Millennials, Gen Z, and the baby boomers are all here working together. Multiple generations and their requirements redefine how the traditional systems are viewed. Millennials place higher emphasis on challenging work, whereas previous generations place a higher value on growth. Additionally, there will be a need to craft an employee experience that is customized for the individual. Just one process for performance appraisal may noy be ideal; multiple workforce constituents may express their preferences for different interfaces or even other processes. All of this would be made possible with changing convergence of technology, human-centered design, as well as analytics.

3. Changing organizational design

Changing organizational design

Organization designs are changing as a response to business requirements. Agile project delivery requires a different organizational structure than traditional delivery structures. Such changing structures have far-reaching effects on organizational systems like compensation, career progression, and performance management. Today, even the notion of an organization as a physical space is changing. Organizations and HCM experts, therefore, need to think about who constitutes human capital and how to optimally engage and utilize them. In fact, within the same organization, dichotomies would coexist, driving different sets of practices. HCM will need to balance both in the near future.

4. Analytics

Analytics

Evidence-based decision-making drives HCM. Technology provides easy access to tools that can organize and make sense of a larger amount of data. HR systems have grown to a stage where they can take advantage of the voluminous people data that is generated. Analytics will impact HCM at two major levels –

  • Building a foundation of HR metrics that can drive business decisions at frequent intervals
  • Using people data to redefine the employee experience

Conclusion

As times are drastically changing, there is a strong focus on the integration of technology for enriching HCM practices. HCM would immensely increase and create a rich employee experience. HR and other organizational leaders will have to take advantage of these innovations and trends to stay on top of the talent game.

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