Ask an Adviser: How can HCM technology benefit your business?

Welcome to Ask an Adviser, EBN’s new weekly column in which benefit brokers and advisers answer (anonymous) queries sent in by our readers. Looking for some expert advice? Please submit questions to askanadviser@arizent.com.

This week, we asked Donny Woo, president and CEO of Combined Benefits, to weigh in on the following: What are the advantages of implementing HCM technology?

Human capital management technology, more commonly known as HCM, is reshaping the way we think about human resources. But as a broker for 35 years, I’m always shocked by how few people in our industry actually know what it is — or why it matters.

HCM is a technology that leverages the information collected from routine HR tasks and functions to manage employees more strategically and efficiently. It will streamline your entire HR process while decreasing administrative tasks, redundancy and errors, thus, freeing up your team to take on more strategic tasks that benefit your business. It also provides insight into how your workforce operates, allowing you to make more informed decisions.

Read more: The digital revolution: How HR tech has changed the workplace forever

HCM technology uses analytics and artificial intelligence, along with other automated digital administration tools, to create a custom experience for all employees — complete with incentives, salary management and goal indicators. Additionally, it keeps employees engaged, which in turn helps with productivity and retention. HCM technology is absolutely the future of HR and should be embraced by HR departments. I see four significant benefits to HCM technology that are worth mentioning.

First, everything is in one place. For traditional employee filing systems, information is usually repeated in multiple locations. This can lead to confusion and inefficiency. With an HCM platform, all of an employee’s information is stored in a singular place that can be accessed from multiple sources. This single source of information gives managers one universal truth to work from, thus, eliminating confusion.

Read more: Are HR’s efforts to adapt to the new normal falling short?

Second, core HR admin tasks are automated. According to research from EY,mundane and repetitive tasks such as managing employee history and records, payroll, benefits, leave and attendance tracking consumes over 86% of an HR’s professional’s workday. HCM technology frees up your team so they can focus on what matters most.

Third, HCM tools can help create work-from-home flexibility.COVID-19 accelerated the transition to a hybrid working model, and now we have more employees working from home than ever before. HCM platforms allows employees and managers access to tools and data from anywhere, so that they can take care of business while also creating a better employee experience and improving the channels of communication between the employer and employee.

Finally, compatibility: Most HCM platforms are compatible with third-party applications so businesses can integrate all their processes in one place. That’s easy, effective — and worth exploring to accelerate business functionality.