The abbreviation HCM stands for “Human Capital Management” which the function is to help employees to improve their performances through a variety of tools and training to achieve a specific set of goals the company has determined to increase their bottom line.
HCM is known for supervising the activities of the workers within the business. They are in charge of recruiting, training and retaining highly skilled employees who will contribute significantly to the productivity of the company.
In addition, HCM can also be referred to as the solution for a unique diverse labor force. The primary focus is to provide explicit expertise in three important categories; employees acquisition, employees management, and employees optimization.
This is the question every Human Resource Manager or Director wants to be answered. What are some HCM changes to look for in 2018?
Well, you are urged to read this article to the end so you will understand all the HCM changes to look out for this year.
Why Has the HR Department Changed?
The overall look of the HR (Human Resources) Department has changed tremendously compared to years ago. The HR recruitment forms have increased mostly because of advances in innovation and technology, more than ever on the web. It’s critical for companies to be online these days with having state of the art cutting-edge programming and a rock-solid workforce if they are to stand any shot with competitors or have the capacity to compete in a worldwide marketplace with different time zones, language, and cultural problems.
At one point, the HR Department had all the responsibilities along with the managers to train new hire after the recruitment process. Currently, since a large number of companies have employees telecommuting or workplaces in various parts of the world, the training and hiring processes are now totally different. It’s easier and more affordable for businesses to train new hire online and allow them to work from home. It’s a trend that will continue to grow even more in the future.
The Many Changes to Expect in 2018
It has been known for quite some time that the labor market and the workplace are facing unprecedented changes. HR must find ways to cope with all the changes that Human Capital Management (HCM) and Artificial Intelligence (AI) are creating.
One of the primary HCM and AI changes you should definitely see in 2018 is advanced software to transform jobs and outsourcing. While there are still many businesses not sure about trying an Artificial Intelligence Driven HR, but they can’t have a dystopian view of the new technology especially when their competitors are seeing good results from it. Outsourcing seems to be the thing of the future simply because it is a way for companies to save cash by decreasing their HR division and using that money for other essential endeavors.
Hiring and overseeing workers spread out everywhere throughout the US or the world is a complex task for any HR Department to handle. They need the proper tools and resources to ensure the new hire process and training are adequate, thorough, and successful. It’s essential that the new hire receive support from both the HR Department and their immediate manager during the probation period while learning how to perform all the duties of their new job. There have been times when some companies hire independent contractors with a lot of experience in a particular job to come in and train the new hire for a couple of weeks. They see it as investing in the company greatest asset
Why Is Outsourcing on the Rise?
Sometimes, if a company doesn’t have an excellent in-house HR Department, they will hire an independent contractor who is an expert to manage every aspect of all staffing plans, performance management, policy creation, compensations, benefits, training and development, budget and labor relations. Most of the time, companies prefer to outsource all their hiring and training needs to a reputable Professional Employer Organization (PEO) rather than to have their HR Department to save money. Small businesses envision it as a way to have access to big corporations’ employee benefits like 401(k) plans, health, dental, life, and other insurance. There is also dependent care as well as other nice benefits they may not, in general, be able to receive if PEO hadn’t made it possible for them. Business owners are all about saving money, increasing productivity, and being profitability.
Top 3 Major Changes in HCM
In closing, these are the top 3 crucial changes in HCM to expect in 2018:
- Making it more digitalized through advanced new software that integrates HR, time and attendance, payroll, scheduling, and more for a modernized and proficient way to supervise and support employees
- More tools and strategies to successfully run a diverse workforce as well as having the best solutions to effectively recruit, train, and compensate them.
- There will be epic changes to staffing as more companies are prevalence to short-term contracts, freelance work or work from home, as opposed to permanent jobs
Additional HCM Changes to Expect
The changes you should also look for this year is the revised policy to help the inundated employees. HR, for the most part, will concentrate on the health and wellness of each worker and take a course of action to maybe change the schedule to liberate beleaguered workers. Expect more flexible work options this year to attract and maintain good highly skilled employees.
The redesigning of the performance management is another one of the HCM CHANGE you should be looking for in the year 2018. Businesses are becoming less reliant on the yearly appraisal process that has been in place for years and more focus on a model that promotes and brings transparency and flexibility to the process, which allows employees, and their managers to work in partnership.
Now, HCM isn’t just about utilizing workers to finish particular designated tasks. Furthermore, it’s about urging them to be creative, ambitious, and motivating them to succeed. Remember, one of the HCM changes you should look for in 2018 as new technology is being introduced to the market at such a quick rate, is preparing workers to be as productive as they would be prudent to remain in front of other candidates.
HCM is dedicated to build up their performances and achieve planned goals with state-of-the-art information, which can be utilized to get data on employees, monitor their abilities and as well as other skills. Almost certainly, businesses will continue to become smaller while being asked to deliver more. To meet this challenge in 2018, HCM needs to work in a more fundamental way, supported by AI and new advanced software.