Human Capital Management is a dying art: here’s how to revive it
Keeping track of today’s workforce is akin to a medical emergency. Organisations are bleeding money due to inaccurate and outdated ERP ( Enterprise Resource Planning) and time and attendance systems. The Human Capital Management Institute calculated that employee salaries, hourly wages, overtime and indirect compensation account for an eye-wateringly painful 70% of an organisation’s total operating costs – a figure that has risen every year since 20051. With stats like that, the doctor’s prognosis would be very dire indeed.
With the rise of remote employees, HR professionals know they need to work harder to understand what they are doing, from where, and the impact that is having on the organisational goals. The prescribed course of treatment is to improve global connectivity, integrate mobile solutions, offer an ease of oversight for managers and executive teams via digital dashboards, and improve employee engagement plus their health and wellbeing. Changes in local and global employment law also need to be prepared for and complied with. Oh, and there’s a business to run too – so you need to do all that while actually freeing up the time of the employees and managers, not by adding to their workload.
That might seem a long and exhaustive – if not exhausting – list. But we do have something close to a single pill that combines them all. According to research by Aberdeen Group, businesses that use automated staff scheduling solutions have a 4% higher workforce utilisation on average plus an 11% year-over-year improvement in employee satisfaction, compared to just 2% for all others2. Automated workforce management systems, the research says, improves employee morale and engagement through increased transparency and manager-employee communication.
Most businesses know that they use too many internal systems, and that no single manager actually has a clue about how each of them work and interact together. Sometimes the painful truth is that while a lot of time and money went into implementing these systems, they just aren’t working out. Or the company has simply expanded or moved in a different direction, and in so doing found that its performance management or time and attendance systems are no longer appropriate.
If that sounds familiar, then it is critical to act now before it’s too late. The diversity of the modern workforce, and the agility needed of business models in ever-changing markets, demands integrated software systems that are delivered by experts. Such outsourced solutions are also increasingly the preferred choice of leading companies who wish to offer their employees’ on-the-move, mobile software solutions, delivered by a provider with global expertise and ready-to-go solutions.
If you had a life-threatening emergency, would you go to the local pharmacist, or the world-renowned consultant at hospital? It’s time to stop trying to patch our businesses together treatments and homemade remedies that only make the situation worse – absenteeism, poor performance, low engagement, and unnecessary meetings and bureaucracy. Get the experts in who know how to fix it with a short, painless procedure – one they have done thousands of times before – that can turnaround a company from flat-lining to healthier than ever.
To better understand how a comprehensive HCM solution can help you deal with inaccuracy and outdated ERP, read our latest report here: http://www.en.adp.ch/human-capital-management/overview
1 HR Magazine (2014) ‘The advantages of workforce management’
2 Aberdeen Group (2013), Total Workforce Management 2013: Absence Management