Maximizing the Effectiveness of Your HCM Software

Maximizing the Effectiveness of Your HCM Software

Overview

Human resources continue to be a critical asset for businesses globally, despite the increasing influence of digital technologies. The focus has shifted towards hiring and retaining employees, reskilling, and enabling the workforce to adapt to a digital environment. This has led to the emergence of Human Capital Management (HCM) solutions, which emphasize data and processes rather than the human element.

However, Human Experience Management (HXM) has gained prominence as enterprises seek to enrich and elevate the employee experience in alignment with business objectives, creating a more positive working environment. HXM covers critical processes such as:

1. Recruit to Retire: Including planning, recruiting, onboarding, and offboarding employees and contingent workers.
2. Talent Management: Involving goal setting, performance reviews, learning, development opportunities, and succession planning.
3. Pay for Performance: Comprising monetary and non-monetary benefits.

Key Drivers of HCM Solutions

Enterprises have traditionally implemented HCM software to improve the employee experience and optimize the employee lifecycle. The underlying leverage for an effective HCM solution is the availability of meaningful data, which leads to informed decision-making and enhanced performance across all HR processes and the organization as a whole.

HCM systems integrate with other functions like finance and procurement, enhancing organizational agility. They also help manage HR activities such as talent management, employee engagement, and recognition by boosting overall visibility and collaboration.

Challenges in Implementing HCM Solutions

While HCM solutions are anticipated to deliver improved employee experience and business performance, their implementation does not always yield the desired results. Issues such as bad data, ineffective processes, insufficient reporting, and inefficient use of best practices can hinder the effectiveness of HCM solutions.

For instance, during reorganizations or business expansions, delays in updating master data can lead to inaccurate management reports and data quality issues. Identifying the root cause of problems is crucial to providing sustainable and effective solutions.

Case Study: Addressing Bad Data Quality

In a recent consulting engagement, Infosys was tasked with addressing bad data quality that hindered the optimal use of the Core HR solution. The assessment revealed that issues stemmed from a lack of process and data governance, inadequate change management, and underutilization of key features and functionalities in the HR solution.

Recommendations for Maximizing Benefits from HCM Solutions

To maximize the benefits of HCM solutions, enterprises should:

1. Assess HR Systems and Processes: Evaluate the current HCM landscape to identify issues and recommend ways to address them.
2. Leverage Maturity Assessment Services: Use Infosys' maturity assessment services to evaluate the HR landscape, identify issues, and recommend solutions.
3. Implement Holistic Approach: Adopt a four-step methodology comprising evaluation, solution development, socialization, and execution stages.
4. Periodically Assess HCM Landscape: Ensure the employee experience aligns with business objectives and remains a priority.

Conclusion

Engaged and happy employees are essential for business performance. Enterprises must periodically assess their HCM landscape to ensure the employee experience is moving in the right direction. By leveraging HCM solutions effectively, businesses can enhance their overall performance and create a positive working environment.

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Note: This summary is based solely on the provided text and does not include any external references or proprietary information.