The HCM cycle is a strategic approach that organisations use to manage and optimise their workforce from recruitment to retirement. It encompasses various stages such as recruitment, compensation, performance management, and development, all of which are crucial to building a successful and sustainable workforce. PayEscape provides a HCM solution offering businesses the tools to streamline these processes while ensuring a seamless experience for both employers and employees.
Before selecting a service provider for payroll, HR, or time and attendance software, businesses should carefully evaluate the HCM cycle. The HCM cycle encompasses a variety of crucial processes that directly impact the workforce’s efficiency and satisfaction. By considering the entire cycle, organisations can ensure that they choose a solution that integrates seamlessly across key HR functions, from recruitment and compensation to performance management and employee development.
Focusing on the HCM cycle allows businesses to understand how different HR processes are interconnected and how a comprehensive solution can drive value. For instance, systems that integrate recruitment with onboarding, compensation with performance management, and time attendance with payroll can help streamline operations and reduce the risk of errors. By considering these factors, businesses can choose a solution that not only manages each function independently but also fosters greater collaboration between departments and a more cohesive HR strategy. Below we have put together good, verses great functionalities when choosing the right HCM provider.
While many systems may appear similar at first glance, the depth of functionality and level of customisation elevate a solution from good to exceptional. Choosing a service provider that prioritises the HCM cycle ensures businesses won’t be stuck with fragmented systems that complicate processes and fail to meet evolving needs. Below, we explore two key areas of the HCM cycle: Recruitment and Compensation.
Sometimes referred to as an ATS (Applicant Tracking System), recruitment modules are a crucial part of the HCM cycle.
Businesses approach recruitment in two main ways: outsourcing or managing it in-house. Based on experience with ATS modules, managing recruitment in-house is often better and more cost-effective, especially for businesses hiring between 1 and 50 employees per year.
However, for larger-scale recruitment, outsourcing can be justified as it often becomes a full-time job. The key to a good recruitment process is a seamless, staged workflow that provides clear visibility and reporting for recruiting managers. Here’s how good and great systems differ:
Provides a clear, user-friendly process for applying to roles.
Allows businesses to build job requisitions with basic templated questions and processes.
Assigns stages to hiring managers (e.g., screening, interviewing) and other departments for tasks like background checks and approvals.
Provides a link or URL that can be embedded into the company’s website, directing applicants to a portal for submitting applications and required documents.
Requires rules (e.g., pay period, dashboard access, holiday scheme) to be assigned manually to new hires.
A great ATS eliminates this by integrating directly with the careers page. Applicants are directed to a portal where they can complete the entire process, submitting documents, answering questions, and tracking progress, all within the system. This not only streamlines the recruitment process but also improves the applicant experience.
Lets businesses build their own applicant questions and customise every step of the recruitment process, allocating specific stages to relevant team members and automating notifications.
Enables businesses to create roles with predefined rules (e.g., pay period, holiday scheme, dashboards) so that new hires automatically inherit the correct settings upon assignment.
Offers a customisable applicant self-service portal or seamlessly integrates with the careers page, automating the collection of CVs, cover letters, and references.
Provides a link or URL that can be embedded into the company’s website, directing applicants to a portal for submitting applications and required documents.
Automatically generates contracts, offer letters, and other documents using pre-boarder data, eliminating manual data entry.
Converts a pre-boarding profile into a full employee profile upon the start date, updating access and permissions seamlessly.
Includes evaluation questionnaires, scoring metrics, location filters, job type categories, and integrations with job boards like Indeed.
Checks UK right to work, criminal background, drivers licence, or DPS checks as part of the recruitment process.
Compensation encompasses everything a worker receives financially and physically, such as salary, bonuses, assets, and one-off payments. While most systems can store and manage this information, great systems integrate compensation into other processes, such as performance management and onboarding.
Salary Management: Allows businesses to assign salaries based on job roles.
Bonus Tracking: Records bonuses and one-off payments.
Asset Management: Tracks company property assigned to employees, such as laptops, phones, or vehicles.
Process Integration:Â Links compensation to performance management, allowing salary and bonus adjustments to be tied to performance outcomes.
Performance-Based Compensation: Supports dynamic pay brackets or frequencies for wage increases based on performance metrics.
Role |
50% |
80% |
90% |
100% |
Yearly Bonus |
Cleaner |
0% |
1% |
2% |
6% |
£1,000 |
Sales |
0% |
1% |
2% |
5% |
£2,500 |
Management |
0% |
1% |
2% |
5% |
£5,000 |
As performance reviews are completed, the system notifies managers of eligible pay rises and bonuses. Directors can sign off on these adjustments, which are then tracked historically.
A great system automates the termination process by generating a checklist of tasks, such as recovering physical assets (e.g., laptops, phones) and revoking access to software. This ensures no gaps or risks in the handover process.
Below, you’ll find an overview of each section, with links to the full content for deeper insights.
Below, you’ll find an overview of each section, with links to the full content for deeper insights.
Find out all you need to know on the essential elements that make up a comprehensive HCM system.
Exploring the key features that drive workforce efficiency and engagement.
Choosing the right provider is just as important as selecting the right software.
Rolling out your HCM system smoothly and ensuring long-term success.
Steven Jones, the HCM expert, has spent over 20 years in the technology and business solutions industry.
PayEscape’s HCM services are designed to support businesses throughout the entire HCM cycle, providing seamless integration across all HR functions. From recruitment and compensation to performance management and time attendance, PayEscape’s comprehensive software streamlines complex workflows, enabling businesses to optimise their HR operations.
Whether you’re a small business hiring a few employees per year or a large organisation with complex requirements, PayEscape’s solution scales to meet your needs. With integration capabilities that is linked with performance, recruitment process automation, and time attendance is directly tied to payroll, reducing administrative overhead and enhancing accuracy. By choosing PayEscape, businesses benefit from a solution that not only manages essential HR functions but also ensures that each process works together, driving long-term success and improved workforce management.
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