The success of a company depends largely on the quality of its human capital. In recent years, more importance has begun to be given to this reality. For this reason, more and more organizations have been specifically Migrating To Oracle HCM Cloud as an investment for their teams to improve their operations.
If you haven’t heard human capital management and Oracle HCM Cloud yet, we’ll tell you what they are and why they are essential to the long-term success of any organization.
Understanding The Concept of Human Capital Management (HCM)
Human capital management is the set of practices and processes that a company uses to attract, recruit, train, motivate and retain its employees.
It therefore involves planning, recruiting, training, developing, evaluating and supporting employees, among others. After all, they are the ones in charge of making the business objectives possible.
It is worth noting that the main objective of HCM is to maximize the potential and performance of employees, aligning their skills with the company’s objectives.
By using human capital management strategies, companies create a positive organizational culture and a healthy and productive work environment, which improves staff satisfaction and employee retention. In addition, it also helps companies adapt to changes in the business environment, such as technological advancements and labor market trends.
Organizations that invest in human capital management improve their efficiency and productivity. They also reduce staff turnover and improve team satisfaction and engagement.
Good human capital management translates into:
- A motivated and committed team with their role in the business, who do not want to leave.
- A relaxed work environment, where the well-being of the company members is paramount.
- Attracting talent, seduced by the current team.
- Greater involvement, creativity and innovation in the creation of value and when providing new ideas and solutions.
- Lower costs of acquiring new staff and employee turnover.
Key Areas of Human Capital Management
Human capital management covers different areas, all of them complementary, among which we find:
Staff selection
Focused on attracting and selecting the right candidates for the company, staff selection includes:
- The definition of the job profile
- Conducting tests and interviews
- Checking references
- The final selection of the candidate
Performance management
Performance management is used to evaluate employee performance and to identify areas for improvement and opportunities for growth. It ranges from defining performance objectives to evaluation, including feedback.
Organizational culture
This area aims to foster employee commitment, motivation and well-being through actions and activities that disseminate the company’s values and principles, a positive work environment or the management of organizational change.
Training and development
Training and developing employees’ skills and competencies through training and development programs is one of the most widely used human capital management tools, due to the direct impact it has on task performance.
Compensation and benefits
Compensation and benefits are the area responsible for defining salaries and benefits offered to employees, and designing incentive programs to motivate and retain talent in the company. They are usually accompanied by bonuses for achieving objectives, recognition for special achievements, and other non-monetary incentives such as development opportunities or work flexibility.
Occupational health and safety
This area focuses on promoting the occupational health and safety of employees by identifying occupational hazards and taking preventive measures.
It is important to note that all of these areas of human capital management, among others, must be understood as tools to help employees grow, develop and feel valued and respected in their work.
Furthermore, empathy must be key to any effective human capital management strategy. Managers and directors must be able to put themselves in the shoes of employees, understand their needs and concerns, and work to create a work environment in which they feel heard and supported.
Talent management
Recruitment programs, mentoring, complementary projects, etc. Employees must have tools at their disposal to feel that they continue to grow and can develop their full potential within the company.
Additionally, succession planning may be beneficial to ensure that employees are prepared for emerging career opportunities.
In short, human capital management (HCM) is critical to the long-term success of any business, maximizing employee potential and performance. It’s important to remember that empathy and understanding towards employees are essential in any effective HCM strategy. If you have any questions or comments on this topic, please let us know in the comments, we’re all ears!
HR professional can ensure the effectiveness of these key areas by embracing and regularly assess the HCM system’s overall health. This is where knowing How To Conduct HCM System Health Check becomes relevant. A reliable and efficient system can help HR professionals spot areas for improvement, enhance workflows, and maximize the system’s potential.
Business Benefits of Oracle Cloud
When choosing modern technologies, Oracle Cloud is a highly considerable upgrade. Thanks to its benefits, more and more companies realize the importance of migrating to the Oracle Cloud.
When we specifically talk about human capital management software, they contribute to all aspects of the HCM function and eliminate manual processes. Oracle HCM Cloud is specifically an all-inclusive suit of human capital management applications, helping HR professionals to fulfil all their functions, from workforce recruitment to development and progress evaluation, efficiently. Once the software is adopted, HR professionals just need Optimizing Oracle HCM Cloud Processes, when they need, to increase efficiency and simplify operations.
As companies are moving ahead by adopting the latest technologies, the on-premise ERP application is losing its relevance gradually. The so-called legacy ERPs are not supporting the speeding business growth, because of which enterprises are gravitating towards Oracle Cloud. To understand this change in the workforce domain and in general better, let’s dive into more profound insights into migrating to Oracle Cloud.
Compelling Reasons for Businesses to Migrate to Oracle Cloud
Innovative technology
Oracle Cloud Applications get their power from leveraging cutting-edge technologies, i.e., artificial intelligence and machine learning. These technologies help automate multiple business processes (like entering invoices) and recommend money-saving actions (like offering a discount to a specific supplier), which helps reduce significant amounts of time and effort.
Thanks to Oracle’s Big data and Daas (Data as a service), which has been very useful for businesses worldwide and been a driving force for adopting Oracle HCM Cloud, Oracle SCM cloud, etc.
Smart applications & tools
The Oracle HCM Cloud is a software as a service (SAAS) applications recognized for their ability to scale your business requirements as it grows and expands. This software built on Oracle’s infrastructure consist of multiple modules built on the same platform. Hence it avoids long installation processes, unlike other platforms. These applications are powered by AI, which enables automating multiple business processes and has helped the users stay ahead of their competitors.
Features like smart suggestions proved to be game changers for user bases related to finance, supply chain, and human resource domains. It’s a no-brainer that AI implementations have increased the marketing potential for Oracle HCM Cloud.
Robust privacy and data security
As software runs on the cloud, data security is on top priority. Oracle is known for its reliable and robust security architecture, which drives various organizational domains like human resource to adopt Oracle HCM Cloud.
Oracle follows top-notch data security regulations like data encryption, multi-layered data security, and highly secured data centers. Thanks to the Oracle Cloud, employee data can be protected from internet threats and vulnerabilities.
Better financial decisions
One of the most significant aspects of the Oracle Cloud Application is that it is best for collecting necessary data from extensive sources, which can further help in decision-making processes.
In addition, when you analyze data from different sources, data analysis becomes more powerful, allowing you to gain deeper and more crucial insights so that you can quickly make the best financial decisions. Also, Oracle quarterly updates further help in adding new functionalities to improve business processes.
As businesses want to evolve and grow as per the market demands, they are gravitating toward Oracle Cloud applications, especially HCM Cloud. They are faster, qualitative, highly accessible, and scalable – some of the prominent benefits of the software. However, business leaders, especially HR professionals, are skeptical about cloud migration due to data security issues and the overwhelming testing budget. Hence, we recommend them employing a comprehensive Managed Services For Oracle HCM Cloud offered by Innovative Methods Consulting. Hence, partnering with us can make your Oracle HCM Cloud migration experience seamless and secure, ensuring a successful transition.