Pandemic-accelerated trends continue to transform how organizations acquire, develop, motivate, reward, serve and manage talent. Technology has emerged as an essential tool in responding to uncertainty and creating a more human-centric but adaptive and composable organization. HR technology, in shaping employee experience and driving business productivity, is therefore an increasingly critical component of successful HR strategy.
Increasingly, designers of human capital management (HCM) applications aim to improve the candidate, worker, learner and manager experiences, while acknowledging that most employees spend relatively little time using these applications. Many applications have a conversational user interface or use insights from behavioral science disciplines to engage users, influence behaviors and contribute to improvements in organizational culture. Continuous learning, listening, feedback and performance management are also becoming necessary to support hybrid and agile ways of working. HR technology shapes employee experience and impacts business productivity.
But amid continual hype around technology trends, HR leaders must understand their own needs and capabilities as they plan to add technologies within HR processes and existing applications. Aim to improve the employee experience by resisting one-size-fits-all solutions, and instead deploy flexible, human-centric HR processes and tools to meet diverse workforce needs.
The core functional pillars of HCM applications are:
Administrative HR: Core HR organizational and employee data management, employment life cycle processes, transactional employee and manager self-service benefits, and payroll administration
Talent management: Recruiting, onboarding, performance management, compensation allocation, career and succession planning, learning and development, and workforce planning
Workforce management: Time capture, absence management, scheduling, task and activity tracking, budgeting and forecasting
Integrated HR service management: Content delivery via a portal and knowledge management capabilities for employees and managers, which may include case management (ticketing/routing), business process management tools and digital document management