Human capital management is the process related to all employee activities, from hiring to managing and more. Many companies have integrated HCM software into their HR practices to help them gain more data and influence their HR strategy and simplify overall HR operations. One way that HCM software solutions have benefitted some businesses is through better management of the employee lifecycle.
What is the employee lifecycle?
The employee lifecycle consists of several stages that an employee will journey through during their time with an employer.
- Recruit: Recruiting includes all the parts of finding the right fit for a position, including pre-screening, reviewing resumes, phone, and in-person interviews, calling references, conducting background checks and any other activities that a business engages in to bring in new hire candidates.
- Hire/Onboard: After an official offer letter and acceptance, a candidate becomes an official employee and begins the onboarding process, which includes setting up employee access, completing benefit and compensation paperwork, and other orientation activities like tours and initial systems training.
- Develop/Train: Employee development is an important part of the employee lifecycle. Training is crucial to employees understanding and performing their roles. Further development opportunities keep employees’ skills sharp so they can continue to add value to your organization.
- Retain: Keeping employees on board with your company is an important part of the work that HR departments are doing. Key retaining elements include activities that lead to employee engagement, like continuing education opportunities and a solid benefit and compensation plan, as well as features like a workspace that encourages collaboration and communication.
- Offboard: Employees will eventually part ways with a company, whether it’s a layoff, retirement, or moving on to another position at a different company. When an employee leaves, the job of HR management isn’t over yet. Usually, companies conduct exit interviews so that they can gather information on the employee experience and make changes as necessary. Companies will usually need to discuss outstanding issues like when an employee will receive their final paycheck, changes to their insurance, and other administrative issues.
So how can human capital management software help HR teams handle the employee lifecycle?
- Recruiting: Many HCM software packages include built-in applicant tracking software features that help employers post jobs, gather resumes, screen applicants, and set up interviews. When this is integrated into the HCM process, it becomes very easy to track a candidate through the process, as well as move them over to the active employee after an accepted job offer.
- Onboarding: HCM software can house all paperwork related to onboarding and be sent for completion to an employee through one email with a single email, even before their start date, making it easier for employers and employees alike.
- Development: HCM software makes it easier to understand what motivates employees and what areas they want or need additional learning opportunities. It can also help management and HR work together to help create succession paths for their employees.
- Retainment: HCM software makes it easier to track aspects of an employee’s performance and work goals. It can also help employers facilitate better communication with their workers and give them a better platform for consistent giving and receiving and feedback. Since compensation is also related to retainment, it is helpful that many HCM software programs have integrated payroll and benefits features.
HCM software continues to impact human resource operations and create easier, more efficient processes and technologically supported teams that can save businesses time and money. Using HCM software solutions to help manage and streamline all aspects of the employee lifecycle is a smart change for HR departments to consider.