HCM Features

Human Capital Management encompasses a broad range of processes designed to manage workforce needs effectively. However, not every business requires the full suite of HCM features, what’s essential depends on factors such as industry, company size, and specific operational goals. Find out more about HCM features in this section below.

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HCM Features

Understanding HCM Features

Some HCM solutions offer an all-in-one system, while others require multiple integrations to achieve full functionality. The key is identifying which features are crucial for your organisation.

You’re probably thinking, “Wow, that’s a lot.” That’s the reality of all the processes and needs for achieving a 360-degree view of business and employee requirements. However, it doesn’t mean you need all of these; it could be industry-specific or depend on the type and size of your business, which we will explore.

This provides you with a high-level overview of everything that can be included as part of an HCM cycle. Some software solutions contain all these features within one system; others may require two, or even multiple, solutions.

Let’s delve into that later, as well as the associated data flows. It’s also important to consider whether you truly need all these features and how you will identify which ones are essential for your business. We will discuss this in more detail as well.

HR governs the entire process, which can be broken down into various components, such as an employee profile, demographic information, job change history, and the general day-to-day management of employee records. Sometimes, it’s about the depth or level of customisation of these features. Some will be very detailed and interchangeable, while others may be rigid and follow a set process. Certain features need to be more customisable than others, depending on your business needs.

HCM Software Diagram

HCM Cycle Features Breakdown

What’s also important is the journey and identifying the points at which you may need these features. It’s important to note that this could vary depending on the business type or industry, just like the number of features required. However, this incorporates all the above elements into the employee lifecycle.

Add-ins will be covered in more detail later. However add-ins enhance an HCM solution by transforming needs and must-haves into nice-to-haves and X-factors. The elements above represent the must-haves in most cases of an employee’s journey within a company.

Below we will explore this in more detail as it will become relevant later when planning your approach with a software company.

HCM Departments

Typically, at each stage of the HCM cycle, different people will be involved. This also depends on the size of your business, as smaller businesses may have one person performing multiple roles

Recruitment

The ATS (Applicant Tracking System) is often handled by a recruitment agency, but if done in-house, HR and the hiring manager are usually responsible. In some cases, recruitment also requires sign-off from finance. This means three people and three departments are often involved in recruitment.

Onboarding

This is likely the stage that involves the greatest number of departments. There’s a significant compliance element, and onboarding is a pivotal moment for creating an employee’s first impression of the company. We’ll discuss the importance of this in detail later, but onboarding involves a wide range of information, training requirements, processes, documents, and personnel.

It could include IT for equipment, training teams for courses, management for introductions, payroll for documentation, owners for welcome meetings, and health and safety for checks. It’s essential to evaluate your process and consider how software could enhance onboarding.

Ask yourself: Are we satisfied with our current process? Who needs to be involved?
Have these answers ready before engaging with a software vendor.

Benefits

Benefits are typically managed by HR and payroll, often via an opt-in form that can be integrated into the onboarding process. Employees need to be registered in payroll for deductions and with the benefits schemes they’ve opted into.

Performance

Goals, competencies, and KPIs (Key Performance Indicators) should align with the company’s objectives and reflect how the employee’s role contributes to these goals, as outlined in their job description. Performance reviews should therefore tie into the manager’s team objectives and the organisation’s overall aims, making this process primarily led by the manager.

Training

Many companies already use an LMS (Learning Management System), managed by HR and management and often governed by health and safety. Training is highly dependent on the industry’s requirements and compliance standards, ensuring workers remain up-to-date. HR and management typically drive this process.

Scheduling

Rotas can originate from various areas, and this is often a common pitfall. Scheduling and T&A (Time and Attendance) are intertwined, yet they’re sometimes considered separately.

It’s crucial to involve the right stakeholders before engaging with a software provider. This is particularly important in industries such as care homes, manufacturing, hospitality, events, and retail, where scheduling is often complex.
Typically, shift managers, factory managers, and other operational managers play a role here.

Time & Attendance

This area requires input from multiple departments, as it encompasses hardware, scheduling, leave, holidays, and payroll. Stakeholders might include management, shift managers, HR, payroll, IT, and finance.

Payroll

Often referred to as the silent cog, payroll is a back-office function but by far the most critical part of the HCM cycle. Payroll professionals are invaluable, which is why payroll is often outsourced, finding skilled payroll personnel with expertise in software, logistics, and compliance can be challenging. At this stage, payroll staff, accountants, finance personnel, and occasionally executives or directors are involved.

Succession

Promoting employees and driving improvement are key to a business’s success. Management and HR use performance management tools to identify high-potential talent pools, focusing on employees who can develop and grow into new roles.

start recruitment

This is the typical path an employee takes when joining a business, and that cycle will repeat itself after succession, with fewer features required during the second or third phases of an employee’s promotional cycle.

What’s important is that this cycle reflects the company’s culture, fosters a connection with the organisation, and provides the employee with a clear understanding of what they are doing, when they are doing it, how they are doing it, and what they receive as part of that cycle. At each stage of the cycle, different departments and individuals are involved.

HCM solution for your business

So, there you have it: all the areas, people, and departments involved in an HCM solution for your business. We will revisit this during the planning phase, but understanding that all these stakeholders and processes are part of the cycle is essential for achieving a successful, comprehensive solution. For more information you can book a demo online.

 Human Capital Management Buyers Guide Index

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

Introduction & Planning

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

Learn More

  • HCM Features
  • ROI Considerations
  • Business Pains
  • Behavior Plan

HCM Core Components

Find out all you need to know on the essential elements that make up a comprehensive HCM system.

Learn More

  • HCM Cycle Overview
  • HCM Reporting
  • Compliance Data Security
  • Integration & System Considerations

HCM Functionality

Exploring the key features that drive workforce efficiency and engagement.

Learn More

  • Time & Attendance
  • Payroll
  • Access Control
  • Scheduling and workforce management
  • Recruitment and onboarding
  • Performance management and succession planning

Selecting an HCM Provider

Choosing the right provider is just as important as selecting the right software.

Learn More

  • Sales process and RFQ/RFP considerations
  • Sign off

Implementation & Success

Rolling out your HCM system smoothly and ensuring long-term success.

Learn More

  • Building an implementation team
  • Training
  • Budgeting and timeline considerations
  • Employee adoption and change management
  • Transitioning to Accountability: Change Management

Author Bio

Steven Jones, the HCM expert,  has spent over 20 years in the technology and business solutions industry.

“As a customer I felt fully supported, valued and confident that Timescape & Payescape were the right provider for our needs. I would have no trouble in recommending both services to friends, customers and suppliers. With their support all of our staff were paid and on time.”

Kelly Alison

“Customer service with Payescape is brilliant. All the staff are so helpful and efficient and provide a great service. I would recommend to anyone who isn't experienced in payroll, as it makes the payroll process very quick and easy.”

Viking Direct

“PayEscape are one of the best! Having used some of the many other payroll companies out there over the years, I can honestly say they are without a doubt one of the most attentive, helpful and inventive. There is always someone on hand to help and quickly get any issues resolved in good time!”

Yves Mathurin

“The move across was made easy with a dedicated team member to help with any queries and training. Customer support replies to queries quickly and the system is straightforward to use. It is so much better than our previous provider.”

Leatherhead

“Set up and onboarding was relatively easy with a great team always available to support and guide along the way. System is easy to navigate and use even for someone like me who has not previously had any experience of processing payroll”

Robert Baillie

“My experience with Payescape has been, and continues to be, outstanding. Having first used their services in a previous employment, Payescape were the 'goto' Payroll & HR provider for my new company. All the staff are knowledgeable, helpful and professional and I would have no hesitation in recommending them.”

Ann Harding

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