July 20, 2017
Our experts provide timely, essential insights and analysis for HCM leaders. We share fresh strategies and practical tips for businesses of all sizes, thoughts on hot topics and industry trends, and the latest legislative updates.
Different companies of different sizes and industries have different needs, so if you’re considering a new human capital management solution, you want to make sure it does exactly what you need it to.
HR software is your company’s system of record. It contains employee data and makes it available to the business processes and other systems that require it. For example, it may interact with your payroll software to provide the banking details for direct deposit.
Payroll software takes gross pay and raw time data from another system, or manually keyed data, and calculates net pay from it, applying deductions and appropriate taxes.
When HR and payroll software is combined with other functions like recruiting, talent management, scheduling, and time and attendance, the industry calls it human capital management (HCM) software.
Human Capital Management covers all the touchpoints between employee and employer:
Businesses considering upgrading their payroll or HR software should evaluate HCM solutions. Many vendors bundle the best payroll software as part of an HCM software suite. Or they have built a single application for HCM that has all the functionality of great payroll software.
Either way, you should determine if the additional functionality and end-to-end integration of HCM software warrants the extra investment.
There are many benefits to HCM software, including the ability to:
Learn what questions to ask and criteria to evaluate to ensure the software you buy gives your business these abilities in the HCM Software Buyer’s Guide.
Many HCM solutions offer real-time payroll processing functionality, while best-of-breed HR and payroll software may rely on imports, exports, and batch processing. Also known as predictive payroll, HCM software with this functionality means you can:
A great question that’s probably not on the top of your list to ask: how many codebases are in the software? This can get a bit technical, but it’s important. The “codebase” points to whether the software was built as a cohesive whole or whether different solutions were patched together. Does the software contain third-party code the vendor purchased to fill a gap in theirs? Does that complicate who supports the software? What about software updates? Does the solution contain old code no longer updated by the vendor or its third-party partners?
Getting your people paid accurately and on time, while staying compliant in the legislation jurisdictions where you operate, is simply the most important work HCM software does. Software that performs other HCM functions well, but struggles with the complex needs of your business is going to be seen as a failure.
Determining whether the HCM software can handle your unique payroll and compliance needs should be top of mind during the review of RFPs and product demonstrations.
Our HCM Evaluation Guide can help with specific evaluation criteria to consider.