Human Capital Management
Human Capital Management - or HCM - is changing the way workforces are managed. This resource page explains the ins and outs of HCM and what it might mean for your organization. Get in touch with us if you have any questions or want to learn more.
Financial capital is critical for a healthy business, but it’s not very helpful without your organization’s greatest asset, your human capital. But while we’ve developed sophisticated systems for managing our finances, systems that encompass every transaction from the largest to smallest, most businesses have yet to roll out a similar system for the people they employ.
Unified systems for human capital management are now finding a home in more and more companies, as cloud-based technology meets a deeper understanding of the needs of growing organizations. These are some of the basics when it comes to understanding exactly what that means.
What is Human Capital Management?
Businesses are accustomed to engaging in a wide variety of processes related to their past, present, and potential employees. This includes areas as diverse as recruitment, payroll, managing performance, promotions and raises, time-off requests, references, schedules, benefits, training, severance, and more.
Because of this broad scope of activities, there are typically multiple systems for tackling various clusters of tasks. A given company might have one system encompassing time and attendance, another for documenting performance issues, a third for tracking compliance with governmental or industry regulations, and a fourth for dealing with new job applicants.
This fragmentation made a great deal of sense when businesses operated primarily on paper. It makes little sense to keep punch cards in the same file cabinet as emergency medical contact forms. Given today’s technological advancement, though, it’s becoming increasingly clear that integrating all these various processes into a single platform makes more sense.
After all, a person who applies, becomes an employee, goes on leave, returns, earns a new credential, gets promoted, drops to part-time, and then leaves the company is still the same person throughout, and all of these aspects affect their work as part of your business.
This is the foundational idea behind human capital management: the idea that the diverse aspects of managing the individuals in your business should work together as a single system. Instead of breaking employees into parts and attempting to manage each one in isolation from the others, it tackles your workforce as a collection of whole people, from applicant to retiree.
How HCM Benefits HR Departments
Withholding federal income taxes
In businesses that have advanced beyond the micro-enterprise stage and have an HR department (even if it’s just one person), human resources employees take on responsibility for a wide swath of the processes that fall under the umbrella of human capital management. This means that implementing this kind of unified system can have a profound impact on how HR departments operate.
Onboarding and Key Paperwork
Onboarding new employees is a process that involves a lot of paperwork in a very short period of time. On their very first day, it’s expected that employees will:
- Verify their authorization to work
- Set up federal, (and, where applicable) state and local tax withholding
- Set up their payroll preferences
- Be briefed on benefits and the processes for signing up and using them
- Provide demographic information for the EEOC
- Receive and review information about policies and practices
- Sign any nondisclosure or non-compete agreements
- Set up logins and passwords for any secure data or systems
- Provide emergency contact information and medical needs
And all these are just the parts of onboarding new employees that HR is often responsible for. It doesn’t even include introductions, tours, or learning about the job itself. Typically, each of these will be handled one task at a time, often through a combination of paper documentation and multiple digital systems, each of which has its own unique front-end quirks and login requirements.
Human capital management platforms allow these to take place within a single ecosystem, allowing HR managers to focus on helping new employees tackle the forms themselves, not the system requirements for accessing them.
Payroll and Taxes
Payroll takes up a huge amount of time and energy within HR departments. Needless to say, this one area in operating a business where mistakes can have a profound negative impact on employee satisfaction, so it’s critical to have a system that works. A good payroll system needs to be able to:
- Cut checks for employees who prefer them, while also handling direct deposit
- Handle overtime, paid time off, and variable pay rates for individual employees
- Manage tips, commissions, and other pay structures
- Calculate and manage tax payments across locations
- Manage pre-tax payments for benefits, charitable contributions, and other purposes
- Integrate with timekeeping and attendance systems.
In reality, many payroll systems require a significant amount of input from HR employees in order to make all this complexity run as a functional system. A human capital management platform eliminates integration issues by being designed as a single system from the start. This frees up HR employees to focus on the more human aspects of their work, allowing both people and technology to focus on the aspect of the job they do best.
From the employee side of things, benefits might as well be magic. They sign up, money moves around, and insurance, retirement plans, vacation time, and employee assistance plans just … appear. On the human resources side of things, this magic looks like a lot of hard work. It starts with printing or purchasing information on various benefits.
Then comes the annual Hounding Of The Procrastinators bonanza during the open enrollment period. There’s the fielding of the inevitable “But I thought I was eligible for …” questions. And then, for each new hire and employee with a qualifying event, you get to start the process over again, on an individual basis.
When working with a human capital management system, this process becomes greatly simplified. Enrollment reminders (and re-reminders, and RE-re-reminders) can be programmed in automatically. Details related to benefits and their associated costs are updated as they evolve from year to year.
Employees can manage their own changes (within the limits you set) so that they’re not constantly coming to HR to tweak this or that. While so many of these feel like minor odds and ends at times, they add up. No longer having to tackle a lot of this manually can be a huge relief for an overstretched department.
No matter what industry you’re in, there’s something you need to be tracking for compliance with laws, licensure, accreditation, or other requirements. Employee continuing education? Sufficient fire drills? Health department inspections? Sufficient staff members certified in XYZ? Teacher-to-child or direct care staff-to-patient ratios?
Are you meeting your environmental impact goals for the grant you received? When were the fire extinguishers last inspected? Whose background checks need to be renewed?
These can feel like entirely separate issues at times. After all, what does collecting Equal Employment Opportunity data have to do with providing sufficiently heat-resistant gloves for welders? However, they all play a key role in one major objective: keeping you in business.
The ability to track all of these in one place (and be notified when one requires your attention) lets you look at the overall needs of the organization when it comes to compliance. This way you never find yourself focusing so hard on maintaining your license to operate that you end up floored when your insurance company decides it can’t cover your warehouse anymore.
How HCM Benefits Managers
While HR tackles a lot of the overarching issues regarding employees as a whole, individual people are most often seen by their own direct managers. Human capital management systems also streamline and support this side of the management process.
Recruitment and Hiring
Yes, HR is often a key part of the recruitment and hiring process, in addition to hiring managers. In a well-functioning organization, both work hand in hand to develop an effective job description and posting, narrow down the candidates, organize screenings, assessments, and interviews, and negotiate salaries and benefits.
But even in these high-functioning environments, disparate systems aren’t doing anyone favors. A hiring manager may express interest to a candidate who approaches them through their network, only to find that HR already rejected them due to the lack of the desired credential. A candidate might have an email answered by two different parties, sometimes with two different answers.
A better system allows hiring managers and HR professionals to partner using one platform for the entire hiring process, from the very first posting to the new hire’s first day on the job.
The best recruitment and hiring programs should be able to:
- Integrate into your website and accommodate your branding
- Be intuitive and straightforward to use for both the people who are engaged in hiring and for potential candidates
- Track all communication with clients, especially offers and rejections
- Track assessment results
- Track interview notes and rubrics
- Include sophisticated and flexible search capabilities
- Allow for attached documents in a variety of formats such as cover letters, resumes, portfolios, certifications, etc.
- Store applicant data securely
- Integrate seamlessly with an employee’s file once hired
Too often, recruitment software is limited in scope, meaning key information that goes into making an offer or rejection is lost with every new position. With a single platform that accommodates not only all stages of the hiring process but also the process of managing the hired employee for the length of their tenure at your business, this information is retained over the long term, providing you with the data you need to analyze and improve your hiring process with each hire. (What’s more, a good HCM platform will do some of this analysis for you, providing new insights for you to reflect on.)
Scheduling, Time, and Attendance
Those who manage teams of people often find themselves spending an undue amount of time focused on scheduling, time, and attendance. This includes creating optimal schedules for hourly employees, (particularly those with variable shifts), managing overtime, checking for accidental errors and deliberate payroll fraud, and dealing with habitual tardiness or excessive absences.
It’s a lot of work, especially for someone who was probably put in a management position because they were good in their area of expertise, not scrolling through spreadsheets of clock-in-clock-out data.
Human capital management systems can cut hours from the time managers spend on these areas. A good one will:
- Integrate with your time-tracking system tech, including mobile apps, biometric systems, badges, geolocation technology, or traditional punch systems
- Adapts to your labor allocation needs
- Can scale with your business as you add employees and locations
- Allow for limits on certain schedules
- Immediately alert managers of any discrepancies or concerns regarding time and attendance
- Create user-friendly reports without the need for in-depth programming or database knowledge
Of course, these are the qualities of a good timekeeping system in general, so why try human capital management? Imagine being able to easily link attendance habits with employee reviews, check proposed schedule changes against compliance requirements, or check for available paid time off without having to log in to a completely different program? That’s the benefit of HCM.
Managing performance is at the heart of what managers do. They track, observe, and analyze results. They provide positive and negative feedback. They praise when deserved and discipline when needed. They set goals and deadlines and hold people accountable.
Every manager eventually comes up with a system for organizing all of this information. (Or at least, every good manager does.) What human capital management platforms do is create an environment where all this information can be kept in one place, where it can be used more effectively. Performance monitoring includes things like
- Storing past and present performance reviews and goals
- Tracking disciplinary measures over time
- Managing performance improvement plans and providing alerts when deadlines to meet performance goals are near
- Tracking awards, bonuses, and specific incidences of praise
- Storing notes and personal assessments
- Stores templates and rubrics for meetings, assessments, and reviews
- Maintains adequate performance documentation to support a decision to promote or terminate, as needed.
Dealing with performance issues can be one of the most challenging aspects of the job for new managers (and even experienced ones), so adding a degree of cohesion to the process ensures that managers and teams are better equipped to do their jobs overall.
Training and Development
Developing staff members and helping them expand their knowledge and skills is a key part of managing. Unfortunately, this is often a haphazard process, with individual employees often needing to take initiative to prompt their supervisors about their desire to grow, track down training opportunities, or even remind them of important deadlines for staying in compliance with licensure or accreditation requirements.
Human capital management platforms allow managers to go about training in a more systematic and comprehensive fashion. Examples include:
- Tracks continuing education requirements and deadlines
- Tracks completion, certifications, test scores, and evaluations
- Tracks costs for reimbursement
- Keeps track of approved classes, instructors, or providers
- Keeps track of classes, instructors, or providers that proved not to be acceptable and should not be used again
- Allows managers to share and edit training schedules
- Allows employees or managers to search training by category
- Allows managers to assign training to a given employee or group of employees
- Allows employees to request training quickly and easily
When everyone is on the same page when it comes to training, top performers are able to expand their horizons while those who are new or struggling can get a boost when they need it.
How HCM Benefits Employees
The vast majority of the people in your organization are neither managers nor HR professionals. They’re your boots-on-the-ground employees. They’re responsible primarily for their own work and collaborating effectively with their peers.
Employees range from custodians to engineers to clerks to teachers. Their jobs are as varied as the businesses in which they work. But all employees, in any role or industry, benefit when they are able to access important information and communicate efficiently within a system that is intuitive and easy to use.
Manage Personal Information
Workplaces need to keep a surprisingly large amount of personal information about their employees. When these records can only be updated by a handful of people in HR, it can lead to bottlenecks and out-of-date documentation. With a human capital management system, employees are able to manage their own information, including
- Name, address, phone number, and other contact information
- Marital status and emergency contact information
- Critical medical information, such as allergies
- Visa or citizenship status
- Federal, state, and local tax withholding
- Certifications, licenses, degrees, and other credentials
Access Payroll, Benefits, and Tax Information
Tax season and open enrollment aren’t the only times employees need to access this kind of information. A landlord or mortgage company might want to see proof of steady income. An employee who is considering fertility treatment would naturally check on the details of their health insurance coverage. An employee who plans to ask for a raise might look at their pay rate history in order to help make their case.
One benefit of a human capital management system makes sure all this information is easily accessible to each employee.
Find Key Company Information
Of course, not all information is personal. Sometimes an employee wants to know
- Contact information for a particular department
- A piece of information in the employee handbook
- A form or template used for a particular job
- A calendar of events and training
- Important company announcements
This can all be put on a company’s intranet if it has one, but keeping it in the same location as one’s personal information makes it more convenient to access both.
Submit Requests and Communications
Asking for permission for one or another thing can be time-consuming and complex, especially since each type of request may require its own unique method of communication. Within a human capital management platform, requests for time off, disability accommodations, mentorship, trainings, or a change in shift can all be tackled in one place.
Demo our HCM Platform
It makes sense to take pride in the systems you’ve developed up to this point. After all, it takes creativity and ingenuity to patch together a variety of technology, processes, and procedures, and develop something that works for you. But as you grow, it can make sense to set that aside in favor of the right system for where you are now, now where you were a year ago.
Ready to get systematic in with your company’s future? Get in touch, and our HCM experts will walk you through what that might look like for you.
Hunt Hollow Ski Club
Hunt Hollow Ski Club has tried other payroll companies from time to time, but always return to Complete Payroll because we have an assigned specialist who knows our needs inside and out, is knowledgeable, easy to reach and very responsive. My questions and concerns are addressed in a VERY timely manner and I never feel that I have to handle sticky issues alone.
Soderberg Insurance Services Inc
I have been working with Lacy Smart and her team for the last few years. I have been impressed by her responsiveness, accuracy, and high level of providing client satisfaction. She and her team are a wonderful testament to the organization!
Kenrick Maintenance Corporation
Ashley from Complete Payroll has always been helpful. It seems that whenever we have a challenge, Ashley is there to help us through and does it well. Her customer service skills are excellent.
Nuttall Golf Cars Inc
I have worked with a few different payroll providers during my career. Complete Payroll is absolutely, by far, the most proficient and customer service-oriented provider I have been privileged to work with. Lindsay Ezard goes above and beyond to assist me with any question I may have. Thank You Lindsay!
The team at Complete Payroll is always responsive, always helpful, and always professional. They have gone above and beyond over recent years to assist Keuka College in creating efficiencies, maintaining compliance, and improving processes. Complete Payroll is a trusted partner, a valued resource, and a respected adviser.
Rochester Hearing and Speech
My experience with Complete Payroll has been exceptional. I was a novice to payroll so my learning curve was big. Andrea is wonderful helping me navigate payroll and not just fixing my errors but explaining what I did or did not do.
Finger Lakes Wrestling Club Inc
We were referred to Complete Payroll years ago by a board member and haven't looked back since. When I first started working with them, I knew nothing about payroll. My first rep Lacey, and now JoAnn, are great to work with. Working with Complete Payroll has just been a wonderful all-around experience for me.
Hilton Health Care PC
We very much appreciate the quick service. If I need a special report it arrives via email within one business day, if not that day.
Dr. Christopher Mozrall
Complete Payroll is a great payroll company, and we love Lacey! She always has the answers to my questions without hesitation. There is very little (if any) wait time to get a call back.
Shear Ego Salon & Spa
The first suggestion I made after I joined Shear Ego was that if they were not yet using Complete Payroll, they should be. We continue to be impressed and happy with the quality and friendliness of service, and the excellent newsletters and up-to-date information on all things payroll and HR.
Boulevard Van City
We moved to Complete Payroll about 3 years ago. It was seamless and working with Lacy Smart on Mondays is a breeze.
People do business with people, not with corporations. In over 20 years, we have only had two customer service reps. Instead of feeling like we are one of 10,000, CP makes us feel like family! We count on Lindsay getting it right, and she always does. Even when we go outside the box, all is as we expect it!
Complete Payroll fits my budget, I never get bounced around between customer service reps, and it's very easy to enter my payroll. I simply take a photo of my payroll sheet and email it to my rep. There's never a problem! With them, it's business done, and business done right.
Town of Bergen NY
Complete Payroll Processing provided an easy transition from internal payroll processing. With payroll as their core competency, CP has the expertise to help mitigate errors and ease the burden of annual updates. Comprehensive reporting gives all the details needed and an organization can operate with an added piece of mind knowing that the payroll service is taken care of.
After nearly 10 years, we are receiving the same or better service than when we started. The ability to reach our dedicated customer service representative in a timely manner is huge when there are deadlines in play. Requests for unique reports and integration with our other vendors has been handled without hesitation. We truly feel a partnership with Complete Payroll.
I am very happy with your service and your website is easy to use. Employees are so responsive and ready to help with any questions. Andrea responds quickly to email, Tracy did everything from the beginning to get us started understanding and entering payroll, and Sydney's training was just super helpful.
I just love Lindsay! She does an awesome job! She is very responsive and I like that she teaches me how to find things rather than just doing it for me.
English Road Pediatrics & Adolescent Medicine, LLC
When our business began in 2005 I knew right away which payroll company we would use. I have had exactly 2 payroll specialists since then, and I feel like they know me & our company. I am not shy to ask questions & if they don't know the answer I am always pointed in the right direction. I have every confidence in my payroll specialist, Lindsay and the company she is with!
Mack's Body Shop, Inc.
I have had the great pleasure of working with Payroll Country for almost two years now. Tiffany was my original CSR and was very helpful, courteous, and was always there whenever I needed help. So far, my experience with my new rep, John, has been wonderful as well. I look forward to working with Complete Payroll for many years to come!
H Clarke Services
We have been with Complete Payroll for quite awhile now and plan on staying. Thanks!
Watch Howard's Testimonial
Crossroads House has been using Complete Payroll for several years now. Their service is fast, friendly and accurate. Whenever we have payroll documentation needs arise for our employees, Complete Payroll always gets the job done quickly and efficiently. We are proud to count them as one of our many community partners.
Swagelok Western New York
We have received excellent and attentive service for over 10 years now. We have come to rely on Complete Payroll's consistency and very low turnover. We appreciate the chance to know our rep and they get to know us and our needs as a business. If we have payroll or general HR questions, Complete Payroll has the answers for us.
Inn at Houghton Creek
Great customer service combined with a reduction in processing fees made the decision to stay with Complete Payroll an easy one. Our customer service representative, Kendall, always gets back to us quickly, and she is always very helpful and friendly. Also, the training that we received from LeeAnn was thorough and beneficial.
Town Of Pembroke
We have been well served by Complete Payroll. When we have needed support, it was given both in payroll and other employee matters, like handbooks.
Antonucci Law Firm
It has been great working with everyone from Complete payroll. Everyone through the years have always been great. They take your phone calls every time, and always go above and beyond what you need. We have been customers for years and will continue for years.
The Service Collaborative of WNY, Inc.
We have been using Complete Payroll for over five years and have found them to be responsive, professional, friendly, and cost effective. Customer service is best judged when something goes wrong. Complete Payroll is always there immediately to help fix the issue. Complete Payroll is a payroll partner, not just a payroll service.
Tiffany Transportation Services LTD.
I have worked with many payroll companies throughout my career and Complete Payroll surpasses them all in personalized service. My CSR is Andrea and I have always received assistance in a timely manner. Keep up the great job!
Olean Wholesale Grocery Coop., Inc.
Complete Payroll is the best choice that I have made for our payroll and HR services. Anytime I have called customer service, there is always a happy and knowledgeable person on the line to help us out! They have done anything I have asked of them in a quick and efficient manner! I would recommend them to anybody!
Financial Service Company
What I love most about Complete Payroll is the quick resolution and response. There are not many issues, but like anything in life, issues happen. Complete Payroll is the best at acknowledging the issue and resolving the problem quickly. My rep is fantastic to work with, and I refer Complete Payroll whenever I can!
Fillmore Wesleyan Church
I've been very pleased with the service and responsiveness of my CSR, and CP's continued dedication to provide us with all the tools we need to have a successful payroll and HR experience. You are always available when I have a question and always make sure that any problems that arise are worked through to my satisfaction.
Elite Armed Response Service, LLC
I can not fully express my satisfaction with Complete Payroll's personalized service, directed to my specific business needs. They are always there to make suggestions on how to make my experience better. I highly recommend Complete Payroll to anyone that has a business, large or small. You will not be disappointed!
A Gust of Sun Winery
Complete Payroll has, by far, been the easiest and friendliest company we have ever worked with. They are quick to respond to any questions I am having, and they also have a great pricing structure.
Central American Healthcare Initiative Inc.
The attention to detail in the customer experience and the consistent friendliness of the Complete Payroll team really make the difference. Liz, Mona, LeeAnne, Brandi, and Lacy have all been great to work with.
Brian Horn's Auto Repair, Inc.
Complete Payroll's service, loyalty, and family atmosphere is second to none! We NEVER have any mistakes, and payroll is always on time. When I have a "Brain Fart" and forget to call in payroll, my rep Lindsey has my back. Our company will always be with Complete Payroll, and I recommend them to anyone who asks. They get an A++ rating in our book!
Evergreen Trails Campground
We couldn't be happier with Complete Payroll's service. Prompt and professional, every concern or question is addressed immediately. Our rep Lacy is an absolute pleasure to deal with. We have every intention to continue our working relationship with them for years to come. It is a load off to know that this part of our business is "worry free."
We have been in business for 70 years and have dealt with A LOT of other payroll companies! Complete Payroll is by far the best we have worked with! Ashlee Adams is my CSR and she is absolutely the BEST! Always makes time for me and very patient with any question that I may have!
We have been customers for many years. Evolution Software is easy to use but, more importantly, Cindy is an email away and her knowledgeable, efficient, and quick to replies to our questions are appreciated. We're very happy with Complete Payroll.
Chemung County SPCA
Complete Payroll is always there if we have a problem or need something special! Their response time is AWESOME!
Independent Title Agency, LLC
My CSR, Andi Dimmick, is The Bomb! She's always friendly, cheery, and with all her clients, makes me feel like she has carved time out for ME. Her customer service is AWESOME, and the personal touch means so much!
Explore What's Next
Everyone I talk to at CP is friendly and tries to help. If they don't have a ready answer, that's OK. They take the time to find one. Website is user friendly, too. The actual operation of payroll is dependable and reliable.
Peregrine Walton LLC
On the ball with pertinent payroll and HR topics - love the payroll system and customer service!
Mitchell T. Yencer
Things go quite smoothly and I have a very good rep: Megan!
GP Rochester, Inc.
Kari Sutton and her team always are there ready to help me with any questions or concerns. The reports are easy to read and complete with the data I need for the job! Thank you, Kari!
Cindy Van Buren
Great customer support and service!
KTS Management, Inc
Easy to use! My rep, Ashlee Adams gives great customer service, and I love the options you have while still being affordable.
Occupational Management Group
LeeAnn was very helpful, very thorough, patient, and professional, and pleasant! She is an excellent trainer!
Jack of All Trades
Leanne was very helpful!
JD Burkhardt, Inc.
LeeAnne was very helpful in explaining the program with me and answered all my questions. I look forward to trying it out on my own next week!
Attica Auto Supply Inc
Friendly, answered all my questions, and never felt hurried.
Nuttall Warehousing LLC
LeeAnn was just wonderful to work with.
Recent Articles from the Blog
We're constantly publishing content about payroll, human resources or anything related to managing your people.
Subscribe to Our Newsletter
Twice a month we share relevant and timely blog articles and other resources. No solicitations. No funny business. Just quality stuff to help employers.