As an HR or business leader in a small or mid-sized business (SMB), you know the workforce and workplace are not getting easier to manage, just more and more complex. With hybrid and remote work here to stay and multiple generations with different expectations of the work experience, HR has moved beyond an administrative, task-oriented function to one responsible for ensuring a positive experience where employees feel respected, empowered and appreciated.
That is a tall order, especially when you still have to manage day-to-day operations from hiring and onboarding new team members to making sure everyone gets paid on time, has the right benefits, and is properly trained to perform and be successful. Leveraging technology to automate as many business functions as possible and equip employees with self-serve capabilities is critical for SMBs with limited resources and budgets.
The challenge is figuring out what software is best for your business, your budget and your employees. From point solutions for a single function (i.e., applicant tracking or payroll) to enterprise human capital management (HCM) solutions, there are lots of options. In some cases, a point solution may be the best option to meet specific functionality your business requires. It’s also important to consider the strain multiple systems can be on a team if they don’t share data, lack SSO, or can’t play nicely together.
An HCM platform that lets you manage the key HR operations from a single platform eliminates those issues, and helps the entire organization work smarter, adapt more quickly to change, and plan for the future of work. Here are some key things to remember when evaluating HCM technology.
Understand Your Business Needs
When selecting any technology, the first step is identifying and documenting the business needs you want the software to meet and the challenges you want it to help solve. Be sure to consider factors like:
- Your company’s size, industry, and your current stage of growth relative to where you want to go
- Your current HR processes and pain points
- Future business goals and objectives and what that might mean for your HR operations
Remember: Your current HR operations probably evolved without the advanced HCM software now available to simplify or even automate tasks and processes. So be sure to identify the underlying challenges your current procedures are trying to address.
The right software may handle those issues in ways you never could before. For example: You may think you need payroll software that can more easily calculate timecards. But an HCM system that includes time-tracking can eliminate the need for timecards altogether, feed that data directly into the payroll system, and even spot exceptions.
Key Features to Look for in an HCM System
As the name suggests, HCM technology should be able to handle every aspect of your HR operations. If it doesn’t, your return on investment will be significantly less than an all-in-one platform. At a minimum, an HCM system should include:
- HR functionality that might otherwise be handled by a stand-alone HRIS system such as document storage, an org chart, PTO tracking, and an electronic employee record
- Payroll with automatic application of variable compensation rates and integrated tax management
- Time and Attendance Tracking to help ensure compliance and reduce errors from manual entry
- Employee Onboarding to simplify new hire paperwork and data collection and accelerate time to productivity
- Reporting to monitor staff efficiency and productivity and identify areas for optimization
In addition to these core functions, a full-featured HCM system should be able to offer the following capabilities, either as part of the basic package or, preferably, as additional modules you can activate as needed:
- Applicant Tracking to manage every aspect of the hiring process from job descriptions through their first day on the job
- Advanced Time Tracking to handle more complex timekeeping needs with features like geo-fencing and job costing
- Schedule Building and Shift Management to provide visibility into work schedules and enable managers to adjust quickly to unanticipated changes
- Benefits Administration to simplify the elections and management processes with employee self-service
- Performance Management to tie performance reviews back to employee records and even business goals
- Mobile access to empower employees to engage with the system in the way and time that works best
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Consider Scalability for Future Growth
As your company grows, what you need from your HR software will most likely change. While you may need basic functionality now, you may need advanced capabilities in the future. It is also possible the makeup of your organization will change, whether through the addition of salaried (or hourly) workers or younger (or older) generations.
For these reasons, you want to choose software that will be able to suit the future state of your company. The right HCM software is the one that will be able to grow as big as your plans and handle people in all the roles you hope to fill.
Look Behind the Features
Once you have a shortlist based on needs and growth plans, you obviously want to understand the features and functionality a platform offers. But beyond that, be sure to do your research on:
- Ease of use – Introducing new technology can be difficult on employees. To maximize ROI, it is critical that tech be adopted and used. Take a close look at how easy it is to navigate and use the system, ask about user guides and training support, and be sure to check out user reviews on software comparison sites.
- HR/SMB experience – While this may seem insignificant, partnering with a company that understands, and cares about, the challenges HR professionals and SMBs face can make a difference. These providers are more likely to incorporate client feedback into product development and roadmaps.
Prioritize Security and Compliance
As with the adoption of any software – especially cloud-based SaaS – you’ll want your IT team or contractors to review the requirements. The goal is always to maximize the security of the systems, while obtaining the full value of the software’s functionality.
This is especially important for an HCM system that elevates its value through role-based access. In addition to protecting the Personal Identifiable Information (PII) for each employee, you may be responsible for compliance with regulations like GDPR, CCPA, and HIPAA.
While much of the responsibility will fall on the software and the company supporting it, there may be operational considerations for its use that fall on each employee (i.e., multi-authentication). Make sure that the HCM system you choose has stringent and current security protocols in place to ensure your data is safe, secure, and private.
What Happens After Choosing Your HCM Partner
Implementing new technology is going to bring with it some level of disruption. And we all know no technology is perfect. So, make sure you ask about what happens after you sign the dotted line.
Implementation
To fully understand what will be involved in implementing the new software, bring IT in before you make your final decision. The heaviest lift tends to be the migration of existing records into the new system and integration with existing systems, all of which needs to be done with minimal disruption to ongoing operations. Here, again, working with a provider that understands the human dimension of operations can make for a better experience.
Support
In the HCM tech space, support can be a key differentiator. While market leaders may win on brand recognition, their reputation for service can rank below others who offer similar technology. Be sure you understand how each provider supports their product and what SLAs they offer, not just for resolution of technical issues but for everyday user support.
Managed Services
Many HCM providers also offer services to support businesses that lack the resources or skill set to properly manage the myriad complexities of today’s dynamic and diverse workforces. Operations like compliance, payroll and benefits administration are prime candidates for tapping into special expertise offered through managed services.
Namely: HCM Designed for HR & SMBs
If you are reading this, chances are you’re currently looking – or plan to look – for HCM technology. Take your time, do your due diligence, and find the right solution to meet your needs now and in the future.
Namely has grown from employee-centric HR software to become a full HCM platform, specially designed for small and mid-sized businesses. With the guidance of its parent company, Vensure Employer Solutions – one of the largest privately-held HR technology and services companies in the world – Namely brings a unique understanding of real-world usage to the product and its service model, including managed services performed by seasoned experts
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