The workforce is changing every year. New advances in technology and the globalized economy have left employers wondering what they can do to adapt to the ever changing landscape. Half of US employers find themselves with a shortage of skilled employees. Meanwhile, 65% percent of employers have trouble retaining the skilled employees they already have.
An organization that supports Human Capital Management has made the choice to capitalize on their current employees. By investing in HCM, an organization provides its employees with clear performance expectations while maintaining their continued engagement. By approaching staffing needs as an asset, HCM provides employees with valuable growth, helps businesses retain skilled talent and ultimately earns future returns on investment. Most companies do not have a talent management system, and those that do feel unprepared to face the changes of a constantly shifting environment. Below are the new trends facing employers and how HCM can prepare you for the challenge.
The New Employee
The new generation of employee brings with them all the technological and social innovations of their time. Today, nearly half the US workforce was born after 1977, and their cultural differences should be embraced. Mobile devices and social media platforms are tools that empower employees but too many emails, messages and systems can lead to stress and distraction. HCM provides a clear message on social media policies and its further advantages by embracing the tech-savvy workforce.
The Global Workforce
A global workforce requires standardized practices. A large majority of today’s talent find work with companies outside of their home county. Many multinational organizations have trouble maintaining a cohesive, informed talent pool across the entire company. HCM creates integrated learning tools, standardized performance reviews and regulated employee rewards. By doing so, the organization crafts a healthy business culture and assures a long, rewarding career for all members.
Employee wages have always been the greatest expense for any organization. Ineffective tools, systems and policies overtax employees, leaving them unable to meet challenges effectively. Mounting stress, frustration and confusion often lead to loss of workers, meaning even more HR time is invested in finding suitable replacements. An organization investing in HCM saves an average of 26% on all HR employee services by staving off such easily avoidable disorganization.
Effective Data Management
The average Human Resources department loses countless hours to convoluted data management systems. Many companies report using over eight HR databases to manage their records. By taking advantage of new systems that integrate payroll, vendor and employee management systems, HCM software reduces administration tasks by up to 20%.
New Legislation Challenges
Compliance with quickly evolving employment laws is one of the greatest challenges a multinational organization faces. New legislation on labor laws, data protection and taxes change daily. Most Human Resource Departments struggle to implement needed modifications on time, often at the cost of the organization. A dedicated HCM team assures these changes are faced without stretching HR departments thin while broadcasting essential information to its employees.
Ultimately, a well-staffed organization will deliver the best results. Long term personnel are committed and have the training necessary to face the fluctuating workplace. HCM helps to engage, educate and retain an organization's most important asset of all - its employees.