Why You Need Human Capital Management Technology Stack to Build Your Startup Business
Human Capital Management technology includes all HCM SaaS, Cloud and On-Premise solutions needed to effectively manage key people management functions
Startups face very different kind of challenges compared to their established counterparts. In the rush of growing revenue and reach the break-even point in a shorter span of time, most startups find it difficult to identify and establish a reliable HR department strategy. According to a report published in 2018, startups find it very difficult to access skilled professionals who would join their companies.
Others, find it hard to retain the talent that they have already hired. In the scenario where lean teams drive startup operations, a majority of the small businesses don’t see the need to build an HR department — a department that is a very important and valuable asset to grow the company’s reputation, employee experience and advocacy in the industry. For startups that have only one HR person for handling all HR functions (hiring, onboarding, training, payroll, benefits, compliance and administration), leveraging HCM Technology can help to organize and manage these key functions.
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In this article, we would highlight the key HR Technologies that you can include in your technology stack, and that’s why you need them in growing a startup business from scratch.
Technology for Human Capital Management
According to Gartner, HCM is defined as a set of practices related to people resource management that is implemented in three categories of an organization:
- Workforce Acquisition
- Workforce Management
- Workforce Optimization
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An HR Technology software for HCM should be able to support the specific requirements, in addition to supporting the core administrative tasks such as:
- Workforce planning
- Competency management
- Performance management
- Compensation planning and strategy
- Time and expense management
- Learning (education and training)
- Recruitment (hiring and recruitment)
- Onboarding
- Contingent workforce management
- Organization visualization
- Reporting and analytics (workforce analytics)
- Workflow automation
Startups could focus on the top functionalities that an HCM technology provides:
- Applicant Tracking System
- Onboarding
- Time & Attendance
- Reporting & Data Analytics
- Payroll
- HR and Benefits Administration
- Learning Management
Benefits of Leveraging HR Technology for Human Capital Management
Here are the benefits of using HCM technology for HR functions:
Single Platform for All HCM Functions
By leveraging HCM technology, HR teams can maintain a systematic workflow in their HR processes. With simple automation of tasks and dashboard analytics, the single platform view helps to eliminate redundancies caused by human errors or ineffective task management.
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Ability to Hire Better Talent and Retain Them Longer
In the competitive startup ecosystem, businesses lose their best talent to their local competitors. By leveraging HCM technology such as the Applicant Tracking System (ATS) and Talent Alignment Platform, startups can accurately identify and hire the best talent for their organizations.
Any organization can build a strong loyal relationship with their employees by fully-allowing automation to manage complex HR functions. These complex functions include leave management, payroll and employee benefits, and compliance.
Scale a Team/Department with Realistic Expectations
Using HR technology, startups can scale their headcount by fully-optimizing workplace productivity and by maintaining machine-based supervision on every employee. These can be further scaled and transformed by leveraging Cloud, On-premise and Mobile integrations, enabling HR Managers to have a birds-eye view on every staff, activity, task, and process. Overall, it’s easier to scale any function or team with a realistic expectation.
Self-Service and Employee Support Dashboards
The ease of providing timely and reliable support to employees has to be the most effective reason to deploy HCM technology in startups. Modern HR Technology software and Cloud platforms provide chatbots, e-calling and messaging tools to bridge the gap between HR and employees. These tools can be leveraged to make formal group announcements, enlist job openings, and for scheduling meetings and calls. Employee support dashboards also offer interactive analytics and insights on how previous interactions with HR teams or staff have played out in the past.
Employee Advocacy, Social Media Management, and Compliance
With the advent of data privacy regulations and cybersecurity-related challenges, HCM functions are bound to evolve too. With the overall brand health in mind, startups can rely on HCM technology to organize, manage and execute employee advocacy programs using social media and email platforms linked to Compliance and Data Privacy Management platforms.
Honest, Fair and Private Management of an Employee’s Grievances
With HCM technology, employee grievances can be solved without the imminent fear of leaking information or biased conversations. These conversations can be monitored by a single centralized HR platform, offering the highest level of privacy to employees on matters of payroll-related discrepancies, sexual harassment or any other employee or work-related grievance.
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