Why organizations are moving towards well-defined HCM strategies
Employers today recognize that their people are directly connected to the success of their business. How they hire, support, compensate and retain their workforce reflects upon the organization’s innovation, productivity, brand and performance.
As a result, they’re creating organization-wide strategies focused on human capital management (HCM). This approach helps ensure they have the right talent, skills and capabilities to respond effectively to changing market dynamics, technological advancements and competitive pressures.
How to construct an HCM strategy
HCM strategies typically focus on five key areas:
- Core people strategy – Ensures your policies and programs are legally compliant in your work areas and your teams are structured effectively.
- Pay and benefits – Involves designing and implementing competitive and equitable compensation plans, traditional benefits and newer programs that promote employee engagement.
- Workforce management – Helps you maximize schedule efficiency, forecast future talent requirements and identify skills gaps and internal talent mobility.
- Total talent – Focuses on how you hire, manage, train and engage your workforce on a personal level.
- Data insights – Measures performance and consistently re-aligns people strategies to business goals.
Once you have a solid understanding of the core HCM strategies, you can evaluate your existing processes and technologies to identify areas for improvement and alignment with organizational goals.
How technology supports HCM strategy
Leveraging HCM technology not only helps you automate and streamline processes, but also gives you access to vital analytics. This data is what differentiates strategic HCM from traditional HR tactics.
Today, there are dozens of different technologies that support a strategic approach to talent and HCM, but no solution is the “best” at everything. To get the most effective outcomes, you need integrated systems.
Some HCM solutions have a wide selection of offerings in each functional area and provide everything else through their partner ecosystem, ensuring you can meet every concern. By choosing an integrated solution, you may find more cohesion when moving through the system and the ability to deliver a better employee experience.
