For companies that struggled to Improve employee recruitment during and immediately after the COVID pandemic, there is some good news and some bad news. The good news is that employees seem to be staying put longer, mitigating the effects of “The Great Resignation,” which drove headlines and caused headaches for almost every enterprise, causing the need for improved HCM software. The bad news is that this pause in job-hopping may be due to concerns about a recession among these workers.
One reality remains. The human resource managers of every company, from a one- or two-person company to large, multinational concerns with thousands of employees, are still trying to adjust the processes of their companies to ensure a steady stream of job applicants and retention of quality workers. For this, many are learning about the challenges suggested by yet another set of “business initials:” HCM.
Human Capital Management (HCM) is “the process of hiring the right people, managing workforces effectively, and optimizing productivity,” according to ADP, a company that specializes in payroll services. “It has evolved from a mostly administrative function to a critical enabler of business value.”
HCM effectiveness is also enhanced by agile software development and digital transformation.
Why Employee Churn is Slowing
The founder and CEO of Asinpa, Gustavo (Tavo) Vasconcelos notes, “From the HCM ‘umbrella’ as it pertains to a company’s human resources, it’s important to have an organization leveraging good systems from an HR, scheduling, and benefit eligibility perspective.”
This opinion is shared by other HCM experts, including the professor who coined the term “The Great Resignation” to describe the frenetic job quitting that began with the pandemic.
“Resignations and job openings seem to be plateauing, a sign that labor shortages are starting to slowly abate,” Anthony Klotz, an associate professor of management at University College of London, told CNBC Make It.
The article explained what HCM trends have wrought: “To attract talent in a perennially tight labor market, many employers have introduced flexible work arrangements, increased wages, or revamped their benefits.
“The ripple effects of the ‘Great Resignation’ prompted more companies to prioritize existing employees’ well-being, whether it’s through enhanced mental health resources or transitioning to a permanent hybrid model.
“These improvements are reducing turnover: In 2022, companies that invested in employee development saw a 58% increase in employee retention, according to a recent report from HR Digest.
“In 2023, Klotz says he expects employers to double down on their efforts to attract and retain talent. More than two-thirds of U.S. employers are planning to enhance their employee benefit offerings sometime over the next 12 months to attract and retain talent, according to July 2022 data from the consulting firm Mercer.”
HCM Software Enables Better Recruitment
According to Tavo, “In a time of constant employee turnover, recruiting talented employees is a high priority for every company. He goes on to say that “technology and HCM software enable HR specialists to recruit quality employees more efficiently.
“It starts with a good applicant tracking process. Some clients may opt to use what their HCM platform offers, and other clients tend to adopt a ‘best of breed’ and leverage an external platform for job posting, applicant tracking, and onboarding.
“Having a platform can help organizations drive the experience and overall company image that nowadays is very important for candidates.”
New Employee Orientation and Retention Is Also Enhanced
The first impression a new employee has with a company is their orientation process. Because the employee is in a very positive frame-of-mind at this time, this is an ideal time to show her/him how their new “home” will be a rewarding place to work. Unfortunately, many enterprises fumble this opportunity to “make a good first impression.” Better HCM technology can help.
“Well-designed HCM software for the orientation of new employees is critical,” Tavo notes. “Having a system that guides your new employees through their onboarding process makes all the difference! It forces you to follow a repeatable process that also ensures the core components for any new member are taken care of.”
This technology can also help with the retention of quality employees who have been with the company for some time.
“By automating expense processes, insurance filings, and other tasks, HCM software can increase the job satisfaction of more senior employees,” Tavo said.
“Even if you don’t have a full-blown HCM platform, there are certain modules or individual apps that companies can leverage to make the employee experience better. Having a well-integrated ecosystem that provides the employee with the right access is crucial.”
Asinpa’s Approach to HCM Software- Agile Development
What process does Asinpa pursue when assisting companies with HCM software projects?
According to Tavo, “We have helped many clients with different modules. We follow an agile framework from beginning to end. This has allowed us to accelerate our learnings regarding the specific way each client operates, while at the same time enabling us to deliver tangible progress in shorter intervals.
“Organizations should realize the benefits of their HCM solution/implementation by making smarter and faster decisions. This is especially important given the centralization of data and defined workflow. It enables them to deliver a ‘best-in-class’ employee experience. As technology advances, artificial intelligence (AI) and chatbots such as ChatGPT and Bard will drive those benefits even further.”