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Human Capital Management (HCM): Streamlining HR Processes with Technology


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For most people, recruitment, payroll, and onboarding are the only responsibilities of HR. But in today’s time, we all realize this is not true. For instance, an HR’s major role is managing new recruits and turning them into assets for the organization; this process is called HCM (human capital management). HCM  ensures the employee experience is engaging, encourages learning, and improves productivity.

During the current decade, the influx of technology has helped streamline the HCM processes, leading to agility, fast responsiveness, and quick decision-making.  In this blog, we look at how technology has streamlined HR processes.

Recruitment- No More Large Stacks Of CV’s To Sort From 

Remember when people used to find jobs through newspaper ads and send their resumes through the mail? Thankfully this is not the case now. Technology makes applying for jobs easy. Introducing features like Linkedin Easy Apply helps digitize the application process, which encourages more applications.

Aside from features like “easy apply,” there are also features which help sort CVs, like the applicant tracking system.  The applicant tracking system sorts CVs on the set criteria. Hence, there is no need to sort large piles of CVs. Hence, Technology makes the recruitment process faster, leading to less wait for applicants.

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Technology doesn’t limit itself to the recruitment process; it also makes onboarding easy. Want to know how? Keep reading and find out.

Also Read: 6 Shocking Benefits Of Digital Onboarding Of New Recruits

Onboarding- Digitizes Screening And Documentation 

Back in the day, onboarding meant lots of paperwork. However, now this is different. Technology makes onboarding easy.  Technology helps new hires complete the onboarding process online, meaning less waiting time, and quick documentation, which helps with background checks and verification.

An easy onboarding gives employees a good impression of the organization’s efficiency and lowers administrative burden. Moreover, in times of emergency, digital onboarding provides easy access to relevant information, allowing fast action.

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On the other hand, think of how hard the process gets without a digital onboarding system. The HR needs to look back and forth through piles of paper, which wastes time and effort. Also, physical records are vulnerable to fires and thefts, meaning a loss of necessary information. On the other hand, digital records don’t have this problem, they are available at one click, and a centralized database means they are available to everyone.

Aside from recruitment and onboarding, technology also makes training efficient; I elaborate on this further in the next part.

Improves Training- No Need For Conference Rooms And Seminars 

Remember when training seminars were those spacious conference rooms or auditoriums packed to the rafters? With the improvements in technology, there is no need for those. The introduction of software like Google Meet, Zoom, and Microsoft teams, digitizes training.

These programs allow employees to connect remotely, finishing the need for auditoriums and meeting conference rooms. Moreover, employees can also record the meetings for future reference. Hence, technology greatly improves training by making it cheaper and more effective.

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Now, think of how hard training gets without technology. We sit in a large conference room in from of a speaker with a microphone. Sometimes, we can’t hear the speaker, creating more problems. Also, there are times when the speaker can’t make it to the venue because of an unforeseen incident. In such cases, digital training sessions are the best option.

Payroll And Benefits- No Need For Large Stacks Of Registers  

Getting done with payroll used to be a hectic job. However, with technology, this is different. Technology computerizes the payroll process, allowing for accurate calculations and fewer chances of error. Furthermore, it also credits employees’ salaries directly to their bank accounts. Hence, employees get their salary on time, keeping them happy and more loyal to the company.

On the flip side, this is not possible with manual payroll. Manual payroll means sitting with a pen and paper and calculating employees’ salaries, leading to many errors and wasting time. A single error disturbs the entire process, and HR managers have to start all over again, causing a delay in employees’ salaries.

While calculating salaries or repaying dues, administrative issues demotivate employees who consider leaving the company. In a crux, a digital payroll system keeps employees in high spirits by timely distributing salaries and reimbursing benefits.

But that’s not all. Digitizing the HR system also helps gather important data, like insights and trends, which are beneficial for decisions, and highlighting areas of improvement. Surprised how? Don’t worry; just keep reading as I tell the wonders Insights and statistics do for Human capital management.

Also Read: “We Are Family” – How To Promote A Family Like Culture In Your Office

Easy Data Analysis- Bars, Charts, And Graphs, In One Click

Hr technology provides all the necessary data for decision-making. It helps organizations gather data and organize it in the form of charts, graphs, and tables. The data includes lots of information, like retention rates and workforce performance.

The data highlights areas for improvement and helps HR make the decisions for correction. Data helps make decisions for issues like recruitment, training, and others.  Using data makes HR’s work easy and allows quick responses to issues.

The Takeaway 

Managing human capital is important today. Hr’s role is more about retaining employees rather than hiring them. Technology eases this process greatly by digitizing most Hr processes. Using technology makes the recruitment process easy, providing Hr with the best candidates quickly.

Moreover, it also makes the onboarding process easy by digitally recording all employee information. The availability of information helps with background checks and use the information where necessary.

Furthermore, digitizing also provides necessary data, which helps make decisions, and highlights areas for improvement.

In a crux, technology is a great saviour and helps greatly with human capital management.

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Erum Ali
Erum Alihttps://mbeforyou.com/
She is a graduate of human resource management. She has several years of working experience in the human resource management sector. Currently, she is doing resource development and management for one of the leading fintech companies. Her role is to complement the recruitment process with strategic human resources consulting to promote long-lasting professional relationships.

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