As the workforce continues to evolve and get more complex, small and mid-sized businesses (SMB) have realized the need for more than HR and payroll software to keep up with ever-changing regulatory requirements and deliver on employee expectations.
When you add a hybrid, multi-generational workforce and a global job market to the equation, it is even more evident that providing employees with the right technology to perform, grow, and thrive is essential to attract and retain the best talent.
Rather than continuing to add more platforms that don’t talk to each other and create more work, SMBs are embracing human capital management (HCM) solutions that offer the functionality necessary to manage an employee from hire to retire on a single platform.
Scalability Provides Higher ROI
Business moves at the speed of technical innovation and the cost of doing business is heavily impacted by the technology in use. When evaluating any new tech, the question should always be which software will return the greatest value, now and into the future?
When it comes to HR software, the answer is straightforward: The more scalable the software, the more value it can deliver as you grow, as your needs change, and as technology innovates around you.
HR software that offers a breadth of functionality in a single, configurable platform can avoid the need for additional solutions later. Automating manual processes and avoiding patched together systems also mitigates the risks of system errors, data loss, and cybersecurity breaches.
How HCM Platforms Empower Small Businesses
The latest HCM systems include accelerants and automations for every aspect of employee management and engagement. The following capabilities are those virtually every business needs and should be carefully considered when evaluating an HCM solution.
Recruitment and Applicant Tracking
A great workforce starts with great people. The impression you make begins with the candidate experience; streamlining your hiring and recruiting processes will not only help you make a solid first impression but also more easily find the right person for the job and your company.
A few of the key capabilities to look for in an applicant tracking solution include the ability to:
- Collaborate and craft the most effective job descriptions
- Directly feed into major job boards and recruitment sites
- Parse resumes, use AI to identify top candidates, and standardize information that is routed to all decision makers and influencers
The platform should also enable mandatory vetting processes like background checks and drug testing, and aid ongoing candidate communication to maintain their enthusiasm.
Onboarding
Once your candidate accepts the offer, the onboarding experience should be as smooth as possible and ensure the required paperwork is handled, preferably electronically and prior to day one! Automating the onboarding process also allows for every department with a task to complete to be well-prepared—from IT knowing what equipment and permissions are required, to fellow team members greeting the new hire by name. On that all-important first day, the HCM scheduling and communications capabilities can enable the warmest possible welcome and speed your new hire towards maximum productivity.
HR
An all-in-one HCM platform turns static employee records-keeping into a dynamic living status dashboard. Changes in status (e.g. marriage or a childbirth) can trigger benefits adjustments and be instantly reflected in payroll. The same applies to compensation and PTO. If job performance requires monitoring, the connection to Performance Management will generate the necessary documentation. In short, an HCM solution puts HR at the center of the company’s relationship with each employee, where it should be.
Scheduling
Whether it’s making sure all responsibilities are covered in a regular 9-to-5, or sequencing three shifts daily from the front office, across the shop floor, to the field, HCM software reduces the administrative burden to get the right people in the right place at the right time. It also helps to ensure compliance with labor laws and accommodates FMLA requirements while minimizing labor costs. Best of all, you’ll never need to use a spreadsheet like it’s a calendar again.
Time Tracking
An all-in-one HCM platform provides oversight of your operations down to the second. Integrated time clocks feed directly into payroll processing for faster, more accurate pay runs. Time fraud and missed punches can be virtually eliminated with biometrics and proximity sensors while geofencing does the same for remote and field personnel. PTO can be requested and approved inside the system, fully integrated with HR and payroll. All this can be tied back to rules-based compliance engines as well as shift-differentials for precision recording.
Payroll
By connecting payroll to time tracking and HR in an all-in-one HCM, you can provide employees with the assurance their compensation is fair and accurate. Like the best stand-alone payroll system, tax rates can be automatically applied and kept up to date with applicable law. The connection to HR ensures employee benefits are accurately deducted and funded. Most of all, all this goes much more quickly and easily when everything is integrated.
Benefits Administration
Since Benefits are both an HR and Payroll consideration, having one system to manage these critical employee functions will improve efficiency, ensure accuracy, and deliver a better employee experience. Empowering employees to enroll in their benefits online not only frees up HR for other tasks but also improves the overall employee experience.
Compliance
Few aspects of HR are more challenging than managing compliance. From properly tracking overtime to ensuring state-mandated trainings have been delivered, complying with regulatory requirements takes considerable time and carries the risk of hefty fines and penalties if not done correctly. A rules-based all-in-one HCM platform lets companies bake compliance into every aspect of their operations, complete with documentation and an audit trail.
Performance Management
The connectivity and communications capabilities of an integrated HR solution can have the biggest impact for small businesses when handling Performance Management. In addition to standardizing the process and documenting exchanges for managers and employees, an HCM platform can enable 360-degree feedback from colleagues for fairer and faster reviews as well as tie individual goals to corporate objectives for more measurable goal-setting.
Employee Self-Service
One of the biggest challenges facing companies today is providing an employee experience (EX) that attracts and retains the best talent. When considering any HR software, you want to ensure it enables employees to manage their professional lives as easily as they do their personal lives through self-service—from anywhere, at any time and on any device. From accessing pay stubs and tax documents to enrolling in benefits and requesting time-off, employees should be able to perform routine administrative HR tasks themselves—quickly and easily. Providing this functionality for multi-generational workforces that are on-the-go will do wonders for employee morale while dramatically reducing HR’s workload (which will boost their morale even more!).
Mobile Access
Having self-service capabilities available via a mobile phone makes it easier to use and easier to love. In many cases—like personnel in the field—this kind of access is as critical as it is convenient. Once again, having everything accessible through a single interface makes a huge difference in utility and usability.
Reporting
While an all-in-one HCM system doesn’t change the mission or goals of a small business, it simplifies many functions essential to effective people management. But there’s an even bigger benefit to implementing an all-in-one HCM platform—deeper organizational insight. When employee data and activities are interconnected and tied to a central database, it can yield quantitative insights into every aspect of operations with the ability to drill-down into key drivers of costs and profitability.
Armed with this knowledge, company leaders can make better, more informed business decisions. Being able to visualize the company’s health on a regular basis is exciting, but identifying opportunities for growth and tracking progress against those goals leads to greater success.
One for All, All-in-One
You may be thinking your business does not need all of this functionality. That may be true, right now. But what about in the future? The best HCM for small business is one that you don’t have to implement all at once. You can start with core functionality like Payroll and HR and enhance your solution with Applicant Tracking or Performance Management when you’re ready.
The flexibility of an all-in-one HR platform allows you to address administrative challenges like manual processes and siloed systems now, while enabling you to power your business and wow your people even more in the future.
Elevate Your HR With Namely’s All-in-One Platform
As one of the industry’s more established brands, Namely knows what it takes to administer HR for a small business. And, as one of the industry’s very newest all-in-one HCMs, Namely delivers the technology you need now plus the service and support to make the transition as smooth as possible.
See what Namely can do for your business. Request a personalized demo at https://namely.com/lp/namely-hcm-solution/