We have been seeing meaningful developments taking place in the contemporary business world for over a decade. In fact, work methods, practices, times, and locations are constantly changing.
Today, the workforce consists of five generations all with different needs and expectations. So, the workforce is now becoming agile compared to what it used to be before as well as includes those who are salaried, hourly wage employees, external agents and contractual workers. In the digital economy competence turned into actual money and the most unusual are respected even more.
But at the same time employees expect more from their jobs. They really want to make an impact. This new world of work, this new workforce and this new social contract between the world of work and employees require new ways of managing human capital.
In this blog we will talk about human capital management and the added value it brings to businesses. We’ll also answer common questions about HCM solutions and discover how Oracle HCM Cloud Technology can improve HR management and operational performance as one of the best HCM Process Improvement Strategies, driving organizational agility.
Understanding Human Capital Management (HCM)
Human Capital Management (HCM) refers to the practices and functions HR professionals engage in as their responsibilities. These include managing, recruiting, and developing a workforce.
However, although it’s based on the indications of the HR department, it’s also based on the involvement of managers at the organizational level: workforce planning, proposals for training opportunities, and establishment of a culture of openness and diversity, among others. Since employee satisfaction and engagement are critical to business success and attracting better talent, smart companies view human capital management as a strategic function.
A few years ago, human capital management was dominated by the idea that people had to be “managed”. Today, this concept has been changed. Innovative companies believe that the best HCM strategies are those that enable people to give their best, to be more productive and engaged. For example, among other Oracle HCM Reporting Tools, HCM Analytics is the best one that renders real-time yet actionable insights into HR data, enabling HR professionals to make informed decisions and improving workforce performance and satisfaction.
In a culture that places people first, the HCM strategy also sees the employee as the most important element of the company. There is a good reason for this. Studies show that a better-adapted, prepared, and more diverse workplace helps boost performance. Good human capital management practices are essential to get there.
Human Capital Management – The Key to Success
Human capital management is important because people are at the heart of any business; they are the source of its ability to innovate and remain competitive. An effective approach allows companies to recruit the best possible talent, develop their potential, and enable them to succeed within the organization. Forward-thinking business leaders, including CEOs, CFOs, and COOs, view HR managers as strategic partners and expect them to help achieve business goals through strong leadership.
In short, human capital management is important for the following reasons:
- Recruit, hire, and retain the best talent
- Welcoming talent into the company
- Create an atmosphere of openness and diversity, and offer meaningful work
- Enable career choices by providing personalized training experiences, mentoring opportunities, and providing a clearly identifiable career path
- Enable employees to fully exploit their potential
- Foster a fair work environment
- Ensure compliance with laws and regulations
- Manage your payroll
Discover Oracle HCM Cloud
Human capital management software contributes to all aspects of the HCM function and eliminates manual processes. You can find management, talent planning and analytics solutions in a single system so that companies can help their employees realize their potential. The best HCM software allows companies to manage processes efficiently and support their workforce in a fast, intelligent and agile way through Oracle HCM support services.
Oracle HCM Cloud is an all-inclusive package of human capital management applications. More and more modern organizations have been using this to manage HR processes efficiently. By adopting this, HR professionals can recruit the talent pool, manage them efficiently, perform timely and accurately payroll processes, and assess the workforce performance using analytics very well, and more.
At Innovative Methods Consulting, human capital management is unified. Instead of relying on disparate applications, functions are integrated into a single platform. Additionally, Oracle HCM Cloud can help an organization plan for future staffing needs by sharing information with other business applications, such as payroll or financial management software.
Transforming Performance Management Through Oracle HCM Cloud for the Future
Today, the changing nature of work, new technologies and new needs are transforming working methods, employee involvement and the functioning of organizations. As a result, companies are rethinking performance management to focus on the future rather than past contributions.
Delving into the Oracle HCM vs. Workday HCM (tadeonal program) comparison reveals the belief of innovative companies that the best HCM strategies enable humans to give their best, be more productive, and be engaged. The more favorable aspect is that Oracle HCM Cloud Customization Options let HR professionals customize the rate of work progress, fields, reports, and integrations to meet the business needs.
Oracle HCM offers robust configurability and integration capabilities. It’s designed to address this changing world, enabling employees to perform and succeed in multiple ways:
- Contribution: By adding objectives to an Oracle HCM Cloud system, employees can better understand them and thus see what is expected of them. They can also track and highlight their achievements in the system.
- Capabilities: Information collected by this software allows employees to understand their strengths and development prospects based on feedback from their managers and peers. Going a step further, training applications (like Oracle Learning Cloud) can offer relevant content to help them develop certain skills or prepare them for their new roles.
- Career: The main reason people leave their jobs is their inability to learn and grow. To help employees think about their next steps or career progression, Oracle software can show job changes from others who have held similar roles. Thus, employees can see how their peers and mentors have evolved naturally within the company to know the career paths available to them and benefit from an agile career where they can constantly learn.
- Relationships: Deepening relationships with peers is essential to increasing employee engagement and achieving results. With this HCM software, employees can create their own internal networks by connecting with their peers and finding mentors with the specific skills and experience they seek to advance their careers and improve their understanding of the company.
- Remuneration: Employees want to be paid their fair value. The compensation functionality of the software allows managers to gain insight into performance and make comparisons across the team to ensure fair compensation.
For the last decade, companies have been operating in the modern business world with a dynamic landscape where agility and talent diversity reign. So, harnessing the power of Oracle HCM Cloud Technology has become pivotal for modern-day organizations. Innovative Methods Consulting is always ready to take you on the journey of optimized HR management and enhanced operational agility. If you want to know key Steps To Upgrade Oracle HCM Cloud or shift from the traditional HCM program to this one, contact us today!