Skills shortages and growing skill gaps put companies under tremendous pressure to attract and retain employees with the skills they need. Digitalization and the integration of HR with other businesses is no longer an option but a necessity. In the past, many HR departments have used separate digital systems for payroll, compliance, scheduling, or learning. The logic behind it was that the combination of best-in-breed solutions would produce the best results. However, putting together different solutions into a Frankenstein-like system for HR tasks has two major drawbacks: first, the user experience is completely lost and, on the other hand, there is no data exchange between the systems.
Study results compiled by SumTotal show that the system patchwork for HR-related tasks that has grown in many companies is not being enthusiastically accepted or used. Because on the one hand, it is very uncomfortable to handle and, moreover, the data in their individual silos without context is quite useless. A study by Deloitte confirms that 57% of companies are mainly looking for new HR technology because they can not do analysis with their current systems. As competition for talent grows, problems with adhering to a "Frankenstein" system will intensify. An integrated approach, for example, through an HCM platform that supports performance, work systems, and learning opportunities, gives a more holistic view of employees and enables HR managers to make strategic decisions. Here are some of many application examples that enable such HR technologies:
- Identifying employee turnover risks: Patch work System landscapes can not even cover most of the time employees show particularly positive results and high commitment, but have not received any salary adjustments for three years. Adjusting compensation based on benefits and actively offering development opportunities can help prevent the departure of capable employees. In times of record turnover and skill shortages, this is a crucial factor.
- Data-driven succession planning: Traditional succession planning is based primarily on the gut feeling of HR managers. By contrast, integrated HCM systems use a multi-dimensional data network with information from a wide variety of areas and can thus provide a fact-based basis for decisions. The information shows, for example, which employees would be suitable for a leadership role or who could take on the basis of his current qualifications with the help of a further education another function. In addition to employee information, modern systems can use machine learning to incorporate successful past succession planning into information analysis and make appropriate suggestions.
- Support career planning: By seamlessly linking the various systems and incorporating the individual career aspirations of employees, an integrated HCM system can reveal career paths that are vivid and achievable. The HCM connects all necessary systems with each other and shows the employees, for example, the necessary learning processes to achieve career goals or to obtain qualifications. Such a clear path for the advancement of employees within the company increases their commitment and employee loyalty. Employees invest in a company when the company invests in it. This trend is becoming clearer day by day.
- Learning in the work process: You can not help yourself with recruitment from the shortage of skilled workers. One mistake many companies make is trying to hire "superstars". But recruiting and compensating for such top talent is at best unprofitable, if not impossible. The more sustainable option is to develop talent in-house. HCM-supported learning not only shows which employees can be developed for required functions, but can also be easily integrated into the workflow. It provides online on-demand offerings tailored to current problems or individual training needs.
These examples show that an overall HCM is much more than the sum of its parts. The data analysis possible by connecting the individual segments creates a value that goes far beyond HR operational duties. Even if much is said about automation, intelligent personnel will remain irreplaceable. Rather, HR should be freed from routine tasks and get receive stronger foundations for decision-making. McKinsey sees HR leaders of the future as "Talent Value Leaders" who develop a talent strategy for the current and future needs of their organization.
To stay competitive in today's labor market, companies should therefore consider some key developments in their HR technology choice:
- A smooth user experience - easy-to-use interfaces and features that will not disrupt the daily work process, and ideally also have mobile, are the key for a high acceptance. Only in this way can employees generate data that they need to build an intelligent talent strategy.
- Personalization with Predictive Analytics - Consumer Brands demonstrated the power to use predictive analytics to deliver targeted information and anticipate problems. These functions can also be transferred to the HR area, for example for the identification of service providers, the identification of competence gaps, and the support of diversity and integration.
- Automation of Operational Tasks - According to a McKinsey study, typical human resources departments spend approximately 60% of their time on operational activities such as data collection, maintenance and reporting. However, particularly successful HR departments spend less than 40% of their time and resources on such tasks. When simple, repetitive activities can be automated, this greatly increases efficiency.
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