When I discuss what the future may hold for human capital management (HCM) software with clients, there are usually questions about what direction the industry is going and what new trends and features we may see in upcoming years. The future is unpredictable, but there are a few major technology trends that have stormed the market recently and have already started to become incorporated into HCM systems.
Before I dive into technology trends, let’s first define HCM software, as it can account for a broad array of business areas. I define HCM software as a system that includes technology to manage payroll, timekeeping, labor management, scheduling, human resources information, applicant tracking and benefits. With this in mind, here are a few technology trends that businesses should know to better understand where the future workforce is heading.
In today’s marketplace, the strength of an HCM system is defined by the output of its functionalities. HR is now more data driven than ever before in order to have a “seat at the table” in leadership discussions around business development. Being able to pull reporting across payroll, HR and timekeeping is invaluable in this pursuit, which is why the demand for an all-encompassing and integrated HCM system is so high.
Imagine having the ability to look at turnover numbers relative to the amount of overtime worked, or performance review scores vs. seniority or education. Do applicants from specific sources stay longer than others? All of these data points and more are possible with integrated HCM platforms. If your HR team has felt held back from disorganized systems and unreliable data, it may be time to consider an upgrade. Integrated systems are here and won’t be going away anytime soon.
Boom in AI
With the help of integrated HCM systems, reporting capabilities have evolved tremendously in recent years. In addition to integrated systems, the use of artificial intelligence (AI) has resulted in massive strides to move beyond the typical idea of what reporting looks like. With the recent explosion of ChatGPT, AI has become one of the most buzzworthy business topics.
Companies are already using AI and machine learning to assess trends in their HCM data, such as sentiment analysis on employee comments from engagement surveys. Over the next few years, we’re going to continue to see more HCM systems using AI to address HR processes and issues before they’re even present in the workplace.
Recent growth in AI has left many businesses feeling overwhelmed and wondering how to adopt it into their existing processes. Although your business may have the urge to dive in and use AI to its fullest extent, it isn’t without risk, as it’s still an extremely new concept with refinements and regulations needed. If you’re interested in AI, it’s recommended that you take the time to fully understand your current capabilities and where it makes the most sense to leverage it at your business. A balanced approach between machine and human learning is key — especially in a business area as people-focused as HR.
Historically, one of the main roadblocks to employee self-service for HCM has been the reluctance of business leaders, especially when the workforce is remote. The primary concern is the belief that some features of an employee self-service portal would be too complex for those who don’t regularly use computers in their daily work. However, between the rise of remote work and smart phones being an essential of daily life, employees are now more comfortable than ever handling technology.
In fact, most employees are now noticing how difficult it is to use the software programs provided by their employers. Recent research shows that more than 55% of employees agree it’s easier to find a movie on a streaming service than it is to find out about their health insurance. Employees have a growing expectation of consumer-grade technology in the workplace, and if you aren’t delivering on that front, they’ll often view it as the employer not properly investing in the employee experience.
These future trends have quickly become a reality, highlighting the importance of staying up to date on new technologies so that your business can adapt and keep up with competitors. If you think it may be time to upgrade your HCM software, Creative Planning Business Services is here to help.
Our experienced HCM team partners with clients every day to streamline their workforce through our all-in-one HCM software, K-Pay. Schedule a meeting with our team today to learn more about the power of K-Pay and whether it would be a fit for your business.