HCM process optimization refers to the improvement of HCM-related software workflows, such as Oracle HCM Cloud. Having an embedded, permanent optimization process can generate a number of benefits for the business. To generate tangible results from an optimization process, however, it is necessary to take a structured approach to process optimization keep reading to be well aware of HCM process improvement strategies!
Understanding Human Capital
It all starts with knowing what human capital is, which is, in short, the experience of a professional used to fulfill his or her responsibilities in the company.
We can highlight the experiences, behaviors, skills, technical knowledge, and personal competence the employee brings to the team.
By attracting professionals with excellent human capital to your company, it is possible to stand out in the market and increase the company’s competitive advantage.
Once, the qualified team capable of meeting all the demands of the company is one of the main assets that the organization can have, which requires adequate management of human capital.
Although challenging in practice, this management is responsible for driving business growth.
After all, it is the team that takes care of all demands and actively works to keep the company at maximum efficiency to achieve all business objectives.
Importance of HCM for Companies
HR has become essential for the management of human capital within a company. With data obtained through software, it is possible to act strategically in this management.
In the end, it all starts with HR’s responsibility to hire employees who are aligned with the organization’s culture and goals. This is done through careful analysis of the submitted resumes and obtaining responses during the interview.
Based on solid data and market experience, the manager can select the people who will join the team to add value.
Managing Human Capital: Best Practices and Strategies
Once the employees compatible with the profile expected by the company have been selected, it is time to take the following steps, mainly to start managing human capital.
The training and development stage is essential for this employee to efficiently integrate into the team, positively impacting the employee’s commitment.
It is a strategic step towards total integration, aligning leaders and subordinates, presenting the company as a whole, and making it clear to the rookie how important it is to the team.
After all, a team must be aware that everyone is essential to each other so that joint efforts can achieve results.
Furthermore, it is important to start the performance evaluation process by always offering feedback to all professionals. Monitoring employee performance and satisfaction indicators is essential in the management routine.
So that it is possible to adjust the team frequently and ensure that everyone is aligned with the company’s objectives. Offering positions with compatible salaries and benefits is also of utmost importance so that employees can always stay engaged.
A mainstream component of HCM process optimization is to have a HCM system health check checklist to ensure that your HCM workflows are efficient and aligned with organizational goals.
Effective Strategies for Developing and Training Employees
Is employee development and training still a big challenge? Any company that wants to take advantage of the competitive advantages of human capital needs to think about the development and qualification of the team.
And it all starts with a well-defined career plan! When the company makes it clear to employees that they will be recognized through promotions and opportunities, it is natural to increase productivity and quality of work.
Since the team is trained so that they can meet the company’s expectations, taking advantage of the new opportunities that the business can offer the employee.
Every professional wants to benefit from training and courses and subsequent recognition and awards. And if the company doesn’t invest in that, it’s natural that employee engagement will be uninspiring.
Ongoing Evaluation and Opportunity Assignment
It is up to those responsible for employee development to make clear the criteria for the continuous evaluation of the team.
As well as, what is the career plan that professionals have. In this way, it is possible to make them feel motivated to give their best to achieve recognition and its rewards.
Offering, among the benefits, payment for part of the professional’s studies or even offering courses through online teaching platforms are some of the possibilities that the company can explore.
So that the team realizes that there is an investment in the development of each collaborator. In this way, it is possible to encourage each professional to develop, grow within the company, and achieve better salaries.
At the same time, the business is improving the competencies and skills of professionals through training and continuous learning. This translates into a better employee experience, innovation, and improvement in processes, products, and services and contributes to meeting customer demands and expectations. As a result, absolutely everyone wins.
Strategies for Optimizing Your Human Capital Management Process
Here are a few necessary steps to follow when developing an optimization process for HCM workflows and procedures.
1. Set Clear Goals
The goal is the abstract aim of the optimization process. Goals and priorities for HCM process optimization can include aims such as:
- Shortening recruitment time and costs
- Improving the digital employee experience
- Decreasing HR costs
- Reducing HR workflow errors
- Improving HR staff productivity
Other goals include those that focus on the HCM platform itself, such as increasing software ROI. This goal, in turn, would be assessed through other metrics, such as those covered above.
2. Establish Objectives, KPIs, and Metrics
Goals are translated into measurements – that is, objectives, KPIs, and metrics. Examples of metrics include:
- Employee productivity and time-to-productivity
- Total hours dedicated to specific HR activities, such as recruitment or payroll tasks
- Employee sentiment towards the HCM platform or specific workflows
- The error rate for specific HR workflows
These metrics will be the central focus of the HCM optimization process since they will gauge how effectively your HR platform is achieving its stated goals.
3. Craft an Optimization Algorithm
Next, it is necessary to dedicate resources to the process of HCM optimization.
In most cases, there is no need to develop an independent business unit or hire someone specifically for this purpose.
Instead, it is often best to choose those from the most relevant departments, often HR and IT.
HR staff, for instance, can offer insights into HR department needs and the employee experience.
IT, on the other hand, will be needed to perform certain technical tasks related to HCM optimization, such as the deployment of data collection tools.
4. Establish Collaboration with IT Department
Today, IT has become central to any business initiative that involves software deployment. In fact, many research firms argue that IT has become critical to many business strategies.
Any HR transformation program that relies upon digital technology, therefore, will need the support of IT.
As noted above, certain aspects of the HCM optimization process will rely on IT’s expertise. IT personnel will be required for tasks such as digital adoption planning, the setup of employee monitoring software, and other technical duties.
5. Implement Process and Task Mining Tools for Optimization
Process mining refers to the collection of backend software data to better understand and analyze that data.
In most cases, process mining tools are used for business process management, optimization, and redesign.
Task mining is another example of an employee monitoring application that can be used for HCM process optimization. Like process mining tools, task mining tools collect data, only they collect information from front end workflows.
The data collected through these tools can offer valuable insights into HCM workflows, employee training needs, and more.
6. Incorporate Process Mapping Techniques for Enhanced Workflow
Process mapping, as the term suggests, uses visual “maps,” or diagrams, to graphically represent business processes.
Flowcharts are one well known example of business process maps. Others, such as cross-functional flowcharts, can offer deeper insights into a business process.
These types of business process maps can help managers understand processes in detail, including key elements such as resource usage, costs, and so forth.
7. Utilize Alternative Data Collection Mechanisms for Enhanced Insight
As mentioned, process and task mining tools can be very useful for collecting data on HCM processes.
There are, however, many other ways to collect data that can offer insights into how an HCM platform is being used.
Employee surveys are one example. Unlike quantitative metrics, employee surveys can offer qualitative insights into the human side of the HCM experience.
This can be useful for gauging, for instance, employee sentiment and employees’ attitudes towards the HCM program. Those surveys can also generate insights and ideas on how HCM workflows can be improved.
8. Map out and Document the HCM Optimization Process
Just as the HCM optimization process is designed to map out and analyze HCM workflows, it is equally important to create a map for the HCM optimization process itself.
After all, process managers will need to continually optimize the HCM optimization process.
To that end, it will be necessary to perform many of the same tasks we have covered above, including setting goals, creating metrics, analyzing outcomes, and improving performance.
Final Thoughts
The return on investment for a human capital management system (HCM) is influenced by several factors including the expertise of staff members, the digital surrounding of an organization and the way tasks are designed. So, it is essential to analyze and improve your understanding of these factors for a good return on your software purchase. The steps above offer an excellent starting place. You can contact Innovative Methods Consulting for more proven strategic Tips For Oracle HCM Cloud Integration, helping your HR improve the process.