In recent years, there’s been significant emphasis on how businesses can improve employee experience, satisfaction, and productivity. Thanks to COVID-19, there was even more focus on employee engagement and happiness, with several employees handing their resignations in and looking elsewhere.
Several industries are in the midst of the so-called ‘Great Resignation’, with UK workers choosing to leave their jobs for pastures anew.
According to a survey of 1,000 UK-based workers, almost a third (29%) are considering moving to a new job in 2022 for reasons including inflexible work policies, stunted pay raises and bonuses, lack of collaborative technology and no career progression.
Payroll errors can also lead to disgruntled employees. And with an ever-changing landscape (IR35 and Furlough just to mention a few), more and more companies have found it harder to stay up to date with Payroll, and costly mistakes have been made as a result. Payroll errors have a huge impact on company culture and can lead to high staff turnover if not managed correctly.
One way for HR professionals and business owners to retain high-quality employees, hire the best possible talent, ensure payroll is properly maintained and address the reasons as to why an employee chooses to leave is through a well thought out human capital management (HCM) strategy.
What is human capital management?
Human capital management is a set of processes and practices that aims to transform the way a business undertakes administrative functions such as recruiting, training, payroll, and human resources.
What is the purpose of human capital management?
The main objective of HCM is to help business owners improve time management and business tracking, increase productivity and engagement from their HR, and streamline payroll, employees and recruitment processes.
Human capital management vs human resource management
Human resource management (HRM) is a strategic framework that companies put in place to help effectively manage and develop their employees and workplace culture.
Whilst both HCM and HRM are human-centric and have similarities, the goals of each process are different. Additionally, HRM software helps small to medium sized companies manage their HR, whereas HCM software does this and more.
For example, HCM looks at the functions of an employee’s entire lifecycle, including time management tracking, hours worked, and payroll records. This ensures global compliance, and offers industry benchmark data, advanced analytics and more.
Why is human capital management important?
Human capital management plays a vital role in hiring, development, training, management, and retention of employees. With proper HCM, a company can:
- Hire talent that’s right for them
- Effectively track hours, time, and attendance
- Streamline and effectively manage payroll
- Keep a complete digital audit of payroll records, and time and attendance records
- Ensure compliance with payroll, time, and attendance
- Properly onboard new employees and make them feel comfortable
- Ensure every employee has the appropriate training and development plans so that they’re constantly improving their skillset
- Make employees an indispensable part of a business
- Improve employee retention
How to improve human capital management
Develop and circulate an internal communication strategy.
When employees understand exactly what is going on during times of change and the business is transparent, the transition will be much smoother, creating a positive work environment.
Invest in HR, payroll and time and attendance software.
HR, payroll and time and attendance are resource and admin heavy processes. When mistakes are made, this can have a negative effect on employee retention and can even lead to costly fines. Find out more about how payroll errors can impact a business.
When companies outsource their payroll, HR and time and attendance to a reputable company like PayEscape, the administrative burden is removed. HR managers can deliver simple, effective, and reliable payroll and people management solutions that futureproof the business.
Read more on simplifying the payroll process.
Become more data-driven
Data is power, and when an organisation outsources their HR admin to cloud-based software, they gain new levels of data and insight about their employees.
These tools also give HR and finance managers the ability to look back and spot any trends or patterns that may be useful. Additionally, companies will also have a complete digital audit and history of their employee and payroll records, which ensures they’re compliant to the latest rules and regulations.
Listen to employees
When a company implements new policies, structural changes, or processes without communicating with employees, it can create a negative environment, so it’s important to communicate.
HR managers should find out what challenges their fellow employees are facing. This will give companies the chance to see where knowledge gaps are, and they can prevent any potential issues that may occur following a big change.
Why choose PayEscape for human capital management?
- Compatible on any mobile, tablet or computer, allowing for instant and easy access anytime, anywhere.
- Data is stored and managed securely in line with GDPR best practices.
- We have an impressive 98% client retention rate and our support team is always there when you need them.
- No long-term commitment is required as we offer monthly rolling contracts.
- We’re highly experienced and have been serving clients since 2006.
- Our services are delivered by our expert team of CIPP and CIPD certified professionals.
- We offer full integration between Accounting, Payroll, HR and Time Management platforms and more.
Our payroll technology and integrated HR admin and time management tools play a vital part in successful HCM strategies that give organisations the ability to thrive. Talk to our team today about your HCM strategies in 2022: Request a demo to discover more.
