How To Maximize the ROI of Your Human Capital Management

Is your human capital management system and strategy doing its best work?

While we’re still reeling from the effects of 2020, it’s time to focus on what we can do better. As time moves forward, changes will continue to happen. Having the right plans, goals, and tools in place will help your team remain a leader.

The Current State of Human Capital Management

First things first, what is human capital management or HCM? From the team over at G2, “Human capital management (HCM) consists of the practices that go into human resource management that are centered around the employee. Businesses use these practices to attract top candidates and develop employees to their fullest potential so the organization can achieve success.”

2020 brought plenty of challenges, and the world of human capital management certainly wasn’t immune. Smarp dug into some of the ways that the pandemic in particular altered the role of HCM. We also gathered some of the changes that we saw with our customers and the recruiting industry at large.

Hiring Changes: Layoffs, Freezes, Booms, and More!

The US hit one of the highest unemployment rates in recent history alongside massive hiring booms in industries like shipping and healthcare. 

Remote Work Became the Norm

While many companies were already making the slow shift to remote-friendly work environments, 2020 certainly pushed those timelines up. Remote work allows for more flexibility in work schedules (a #1 request for many employees). It can also bring up its own set of needs, like building a fool-proof communication strategy.

Transparency and Employee Expectations 

In a year of massive social change throughout the country, employees are beginning to expect more transparency. A survey from Smarp found that “50% of employees say that a lack of transparency holds their company back.”

Welcoming Diversity and Investing In Inclusion

Diversity amongst teams improves creativity, reduces the risk of mistakes, and even increases revenue. Diversity recruiting is now one of the leading needs for companies. More and more teams make inclusion a priority because you can’t embrace diverse team members without embracing inclusion.

How To Get the Most Out of Your Existing Human Capital Management

Be Open to Critique, Changes, and Conversations

Flexibility isn’t just a bonus of remote work. It’s the way to ensure your team’s success. To ensure that your HCM system is always at its best, you need to be ready to make consistent changes and optimizations. There’s no need to overthrow the system every fiscal year, but keeping an eye on trends and industry changes will help you get the most out of your plans.

Embrace Transparency From Leadership Down

When you’re trying to get better, you need to be willing to face anything that comes your way. Our President, Neil Bryson, recently took to LinkedIn to share how he led HiringSolved through 2020 and the role that transparency played in us getting through. As he said, “By being straightforward and honest with them, it was my goal to ensure they would do the same for me.”

Invest In the Right Tools

To get the most out of your systems, you need to have the right tools. Use that transparency and your openness to change to audit what your strategy needs.

Let’s say you have a million candidates in your ATS, but you can’t search it. You need a way to search that ATS.

HiringSolved can provide you with the technology and support you need to increase the ROI of your human capital management.

Tie the Candidate Experience to the Employee Experience

The critical thing to remember about HCM is that it shows how important it is to focus on employees as a whole. By partnering your candidate experience with your employee experience, you’re better able to build trust in the people you work with. Remember that your employees are the biggest expense your company faces: invest in their potential and you’re investing in your company’s success!

Don't stop now. Keep reading!

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