In today’s world where the business environment has become more competitive than ever, a company needs to take advantage of any available tools to survive and thrive. Human Capital Management (HCM) being part of those tools that the company could use to manage the most important aspect they have its people.
The way HCM work is changing, in the same way the work and business environment change. Recognizing the shift where HCM will go in the near future will help companies to make the preparation needed to adapt to the change.
Here is the trend that most likely will shape the evolution of human capital management and how it affects the business:
- Contingent Workforce
We are dealing with a different kind of working environment this day compared to what we have fifty years ago. Today, more and more workers looking for flexibility at work, which is one of the reasons why freelancer and consultant are becoming more common. Businesses are looking for a creative way to meet the ends without having to sacrifice the cost associated with salary and compensation, hence the reason they use freelancer service.
Businesses now need fewer full-time employees. Smaller companies in this day are able to compete with larger companies. By using a contingent workforce including freelancer, businesses are able to mitigate the uncertainty in today’s business environment.
- Integrated system and function
The era of technology is here and the best thing that companies can do is embrace it fully. The thing is, a single company may come up with a different kind of technology system to deal with the same thing, either it was the HR system, payroll, and so on.
Multinational companies with branches in different country face an even greater problem that this, due to their sheer size. Using a different system to handle the same thing will only create chaos in the form of inconsistency information, duplicate entries, and so on.
In this case, simple is better. Companies need to use an integrated system that connects everything. An integrated system with insight across categories that cover everything from payroll, benefit, recruiting, time attendance and everything else connected with it is the best tool to use.
At the same time, an integrated system like this will lessen the burden on the HR team. There will be less of duplicated entry, less manual labor, and more accurate information, which will give the HR team more space to work on other strategic necessities.
- Workforce optimization
Human capital management focuses on human as the asset of the company. It means that they need to come up with a better strategy to bring out the best from their people. If they can’t do this, they are facing the risk of losing talented people to other company.
Workforce optimization works on the different aspect of human resource starting from recruiting the best people for the job, training, leadership development, compensation and employee benefit management, and so on.
The companies also need to get their hands on accurate real-time data as the guide on making the best decision to drive workforce to increase their productivity.