Many organizations are starting to realize the value of human capital. The qualification, skillset, training and productivity of employees can make or break a business. Companies are now dedicating more resources for recruiting, training and managing their workforce, this is called Human Capital Management (HCM).
There are a number of HCM softwares which are designed to automate, assist and streamline the tracking and development of existing employees and new hires effectively.
What are the Main Features of HCM Softwares?
If you would like to know what is HCM software, its key features and benefits, we must first need to understand the processes it manages. The common features of a HCM software deal with the process of recruitment, onboarding, training and performance management.
HCM softwares can be easily integrated into other business operations such as HR and payroll software solutions and third party applications. A new feature that HCM vendors are now including is time tracking and attendance. With this in place, any overpayment in payroll can be prevented and minimize the risk of compliance violations.
Core HR Capabilities
The core HR capabilities include platform integrations for compliance management, employee data management, payroll and administration. By enabling these functions, the HCM software can reduce the burden of admin tasks that are usually routine and mundane.
For effective human capital management, the HCM software should have automated features for tasks such as learning and development, succession planning, talent analytics, recruitment, employee onboarding, compensation management and performance management.
HCM softwares also offer workforce management features which are designed to improve the efficiency of work related tasks and boost productivity. The features that workforce management includes are workforce analytics, workforce planning and scheduling, leave management, time and attendance management.
HR Service Management
HR service management offers features that enable employee self-service, intranet portal, manager self-service, HR helpdesk, employee chatbots and mobile accessibility.
Data and analytics are the most powerful aspects of a business. HCM software offers features for business intelligence such as effective reporting processes, predictive analytics and data visualization.
The Difference Between HCM and HRMS
While these terms, Human Capital Management (HCM) and Human Resource Management Systems (HRMS) are used interchangeably, they serve a different purpose. The main objective of HCM softwares is to strengthen the productivity of the workforce while HRMS is related to managing tasks of the HR department.
|Locate and hire skilled workers||Automate payroll|
|Raise skills standards within the workforce||Ensure accurate recordkeeping|
|Boost company productivity||Streamline benefits administration and management|
|Establish performance goals and track progress||Connect recruiting and training to database for ease of organization|
|Focus on employees as individuals||Broad focus on workforce as a whole|
|Support employee development||Assistance with compliance|
What is New Hire Paperwork and When is it Used?
When starting a new job, there are certain documents to be submitted. These documents include job applications, employment contracts, internal company forms and tax forms such as W-2, W-4 and I-9.
The Employee’s Withholding Certificate or form W-4 is required to be submitted by new hires.
The details from this form are needed to calculate the federal tax withheld from an employee’s paycheck. Existing employees should also update form W-4 every year as the federal tax amount withheld is calculated based on certain employee factors such as marital status, filing status and family size.
When starting a new job, your new employer may ask for a copy of your previous W-2 forms. This is necessary to verify the previous compensation availed from your previous workplace. Check to see if your company follows W-2 compliance, if you do not have your prior w-2 forms, approach your HR department and ask them how to go about the process.
The Employment Eligibility Verification form is mandatory if you have a job offer in the United States. Also called form I-9, it serves as proof that you are legally entitled to work in the country. Each new hire will have to submit form I-9 to their employer which will be kept on file.
Internal Company Form
Part of the new hire paperwork, internal company forms are required for the company’s reference. Mandated by law, the internal company forms will include the following details.
- The employee handbook.
- Drugs or alcohol related policies.
- Security and confidentiality agreements.
- Non-disclosure agreements.
- Non-compete clauses.
- Criminal record of new hires (if any).
Employment Contract Form
This form will be given to new hires on the first day of job. The employment contract form contains the following details.
- Employee benefits and compensation.
- Employee responsibilities.
- Company profile and information.
- Factors and conditions for possible termination.
- Job description and designation.
- The length of employment (for contract-based work).
- The schedule and work timetable.
Before you leave for your first day of work, ensure that you have a copy of all work related documents as well as your higher education documents. The company may require proof of a college degree or might request for your college transcripts.
Keep in mind that you will have to produce original documentation to verify your work eligibility and identification such as a driver’s license, passport or state ID and a certificate that states you are legally in the United States such as an original birth certificate or a social security card.