What Is a Human Capital Management (HCM) System?

By PrismHR

As a PEO, you’ve probably considered exploring the Administrative Services Organization (ASO) market, which could open up a whole new world of opportunity.

Not every SMB prospect is a good fit for a traditional PEO model. And some of your existing clients may outgrow the need for your PEO offering.

Enter PrismHCM, our new reimagined platform that can scale to meet the needs of your PEO clients as they grow into the ASO space.

So What Is HCM Exactly?

ASO is a term that is not well-known outside of the PEO space, which is why we use the more recognizable term, Human Capital Management (HCM). HCM is similar to PEO, but it’s a self-service model.

HCM comprises all employee HR functions, from recruiting and onboarding to performance reviews and professional development. It also encompasses administrative processes such as payroll and tracking employee hours.

To look at it another way, HCM is the intersection of people management, data, reporting, payroll and more. Think of it as the technological component of ASO.

Efficient Management From Hire to Retire

Even if SMBs decide to go it alone, they will need HCM solutions to take these HR- and payroll-related tasks in-house.

Attracting top candidates and building a diverse workforce depends on having an effective HCM strategy. The right tools give SMBs a greater chance of retaining employees by engaging them and making their experience as seamless as possible.

Companies invest in HCM tools because they want to be more efficient and productive, setting themselves up for long-term success. A centralized HCM solution enables SMBs to take their HCM strategy to the next level, efficiently managing employees from hire to retire.

Benefits of HCM Software

Using HCM software, HR managers can bid adieu to disconnected and manual HR processes. Onboarding, benefit enrollment, performance reviews, and other processes are automated and streamlined in one place, simplifying the experience not only for employees, but the HR team.

HCM systems also elevate engagement and enhance the employee experience. Social media-like tools allow employees to share important announcements, anniversaries and more. Self-service tools allow them to access personal data, check schedules, request time off and get answers to common questions, freeing capacity for the HR team.

HCMs also enable SMBs to store all confidential employee data in one secure place. With access to their own information, employees keep this data up to date, helping ensure accuracy and eliminate duplicate entry.

What Are SMBs Looking for in an HCM System?

Not every client is the same. Companies have preferred solutions, so you have to adapt to their world.

HCM allows you to do that. Ask prospects about their HCM must-haves and nice-to-haves. Do the functionalities of the HCM software check off all their boxes?

PrismHCM accommodates the HCM market by providing clients with the flexibility to work with other software, such as their preferred accounting, tax-management or time-management platform. This foundation allows you to plug in tools your clients are currently using.

Information from data warehouses and health care providers can also be downloaded into PrismHCM, allowing SMBs to analyze data and monitor company performance. The platform can also be customized to meet the client’s needs and improve efficiency.

PrismHCM (or insert your preferred name here) is designed to grow with your client. It gives your clients the opportunity to take their HR in-house while providing a state-of-the-art platform to help them continue to attract new talent and retain current employees.