Not every human capital management solution will serve all of your needs, so it can be useful to rank your HCM requirements. Start with those that are mandated by law, followed by those that are optional. If you’re a global or multinational organization, you will likely have different HCM requirements than Canadian based companies. You may also have to consider the priorities of your key stakeholders.
This checklist outlines the nine most common business goals of growing organizations and the corresponding human capital management (HCM) features, capabilities and technologies that can help reach those goals. Use these criteria to evaluate solutions you're exploring or as a resource to build and prioritize your own HCM requirements checklist.
HCM requirement #1 – Increase profit and productivity
At its core, an HR and payroll system can increase productivity by streamlining workflows, reducing the effort required to stay compliant, relieving administrative burden and improving bottom-line financial results. This type of system can help elevate HR to a more strategic position in your organization.
A streamlined system can increase productivity by streamlining workflows, relieving administrative burden and elevating HR to a more strategic position in your organization.
Look for systems that offer:
- More strategic use of resources
- Automation of any processes you are still performing manually, including data sharing
- Administrative efficiencies that can reduce costs
- Streamlined processes that may increase productivity and drive growth and profitability
- Services that make it easier to comply with ever-changing regulations
- Strategic use of resources
HCM requirement #2 – Ease of Use
Employees expect interfaces that mirror the mobile apps they use in everyday life.
Look for systems that feature:
- Mobile-enabled, self-service portal for managers, employees and contingent workers
- A simple and engaging hiring process from applicant’s first touch
- Manager tools that streamline workflows
- Single sign-on for HR applications
- A shared source of employee data to reduce redundancy and errors and increase productivity
- Apps for isolated tasks that integrate easily into the HCM system
- Simplified, mobile-enabled, benefits enrollment
- Financial wellness programs for employees
- Personalized pay options, including pay method, pay frequency, and access to earned pay in emergencies
- Flexible, adaptable technology
- Artificial intelligence for talent acquisition, HR service delivery, improved personalization, performance management, business intelligence and data analytics
- Chatbots
- Workflow automation to increase efficiency
HCM requirement #3 – Support for talent strategy
Not all HCM providers are capable of balancing the needs of both HR and employees. Evaluate whether a vendor can align your talent strategy with your business goals and increase employee engagement.
Look for systems that offer:
- Support for all of your recruitment and hiring tasks
- Easy-to-use onboarding technology
- Compensation package benchmarking
- Candidate sourcing and applicant tracking tools
- Support for hiring, managing, and budgeting for regular and contract workers workers
- Training and career development
- Scheduling and absence management
- Ability to manage tax credits and incentives tied to your workforce management practices
HCM requirement #4 – Actionable data insights
In an increasingly data-rich world with increasingly data-literate workers, a system’s ability to yield accurate and actionable insights can set you apart from your competition.
Look for systems that offer:
- A centralized data set for your HCM metrics
- Easy-to-understand data visualization for non-technical audiences
- Configurable analytics for custom insights
- Industry-wide data for benchmarking
- The ability to integrate HCM data with other business metrics
- Predictive analytics that enable modeling and forecasting
- Access to analytics that will help empower decision-making
- Cloud-based data to minimize costs
HCM requirement #5 – Ecosystem connectivity
HCM technology is an aggregate of multiple functions. A comprehensive solution can help integrate HR systems, process data, run reports and create a smooth end-user experience.
Look for systems that offer:
- Seamless integration between core systems: payroll, time and labour, benefits administration, HR, and talent management
- Centralized employee records management
- Integrations with other enterprise systems
- APIs to develop your own custom integrations
- Data, workflow and tools that support agile teams
- Simplified reporting accessible to all users
HCM requirement #6 – Proactive compliance
Whether your business is local, global or somewhere in between, consider an HCM vendor that can help you maintain compliance in every jurisdiction. In addition to keeping the HCM technology updated with compliance regulations, an HCM vendor should provide compliance services to help you manage the myriad tasks required to stay compliant. Among other things, you need to manage your compliance obligations related to tax filing, third-party payments, administration of pay methods, hiring, training, and incentive management.
Look for systems that offer:
- Local and global expertise
- Experts who interact with agencies on your behalf in all your company’s geographies
- Consistent, reliable updates of regulatory changes
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Payroll and tax compliance
- General Data Protection Regulation (GDPR) compliance
- Real-time alerts and notifications of compliance risk from time and attendance, payroll and benefits systems
HCM requirement #7 – Data security and privacy
Technology enables cloud-based data, mobile access and virtual collaboration across different physical locations, but also necessitates robust data security protocols.
Look for systems that offer:
- Global privacy and data protection
- Proactive, public-facing security alerts
- Operational risk management
- Fraud and diversion management
- Critical incident response
- Push technology for security updates
HCM requirement #8 – Continuous optimization of your HCM investment
To get the most out of your HCM system, look for a partner that provides service beyond implementation, including a baseline for ongoing improvements and benchmarks to track progress. A provider that regularly enhances products and services, adopts best practices and supports your organization's strategic growth can help you sustain success for years.
Ensure you understand what the HCM provider offers in these key areas:
- The service model and support offered after implementation
- Ongoing product and compliance communication
- 30/60/90-day post-implementation plan
- Internal performance benchmarks across your organization (region, department, business unit, etc.)
- External benchmarks against similar organizations (same industry, region, etc.)
- Dashboards to track performance, analytics to drill into details, and alerts to identify potential problem areas
- Tools to measure employee engagement
- Artificial intelligence to interpret and evaluate data and automation to streamline workflows
- Ability to change processes, business rules and policies in response to changes in strategy or the business environment
- Periodic account reviews with stakeholders to measure performance against business objectives and plan for future needs
- Consultative services to evaluate processes, define best practices and design new approaches
- Access to third-party HCM specialists
- Vendor-led conferences and events for HCM practitioners and leadership to foster networking and share knowledge among peers
HCM requirement #9 – Optimize your in-house HR and talent resources
Whether you are growing or downsizing, consider a vendor that can combine technology with a dedicated service team to optimize your in-house HR resources and reduce costs. HR impact or affects many critical areas of your business: benefits administration, workforce management (time and attendance), talent management and payroll. It’s complex, costly, and constantly changing.
An HCM vendor that offers a Business Process Outsourcing model can help reduce costs and manage the complexity of human resources:
- Lower expenses for human resources staff, infrastructure, and technology
- HR teams freed up to focus on more strategic tasks
- Improved overall global operations through streamlined processes
- Stay up to date with compliance regulations
