Technology has delivered incredible benefits to employees by enabling them to work flexibly and in more agile ways. As a result, HR leaders are feeling greater pressure to ensure employees have access to the agile work practices they expect, as anything less will leave them struggling to attract and retain talent.
HR leaders however, are also experiencing greater demands to be partners in transformation and to demonstrate the value they are receiving for their investments in systems and technology. This means eliminating inefficiencies, increasing productivity, and making better decisions regarding workforce performance and capability development.
Being a HR leader in this era of flexible and agile working requires having a strong foundational platform that encompasses all aspects of employee engagement and development, while ensuring their organisation is meeting its requirements for governance and compliance.
Modern HCM systems deliver this by providing a unified platform that integrates Recruitment, Onboarding, Performance and Career Development, helping organisations achieve operational excellence while also delivering quantifiable business benefits.
We have seen organisations achieve efficiency benefits across a wide range of HR roles through the implementation of integrated HCM platforms. Oracle’s HCM Benchmark Report found benefits such as improving training processes by 80 per cent and reducing compliance costs by 70 per cent. We have also seen organisations cut payroll processing time by 68 per cent and reduce time to hire by 44 per cent all by using HCM platforms to automate and streamline manual processes.
The self-service tools within modern HCM platforms also deliver a range of benefits by reducing manual processes and other inefficiencies. In the case of report generation, the introduction of automation has increased productivity by up to 79 per cent. Automation was also seen to increase HR staff productivity by up to 34 per cent, leading to a reduction at some organisations in the number of HR IT decision support staff required. We have also seen employee engagement rise by 15 per cent and the overall employee replacement cost and attrition rate decrease by 11 per cent.
We have seen numerous examples of companies that have derived clear benefits from the adoption of integrated HCM. One that comes to mind is the freight company Follomont Transport, which has gained substantial process efficiency improvements within its HR function through the adoption of the Oracle Cloud HCM. The new platform is providing real time data and helping the company develop a pathway to plan its future work environment. Employee engagement has also risen, directly benefitting customer service levels.
By striving for operational excellence and integrated workforce insight, HR leaders can build the capacity to create more agile working environments, while delivering a slew of quantified benefits to the business.
Integrated HCM platforms also enable HR leaders to manage an agile workforce even when it is scattered across dozens or hundreds of locations and retain a single source of truth regarding their performance. Furthermore, they provide the ability to see in real time where employees are putting in effort and where they are losing time. When coupled with advanced data and analytics capabilities, HCM platforms deliver true insight into employees’ performance and development.
Is your existing HCM platform allowing you to quantify value and make critical decisions regarding your workforce engagement and development? With data and analytics proving increasingly critical for business success, both within the HR function and across the broader organisation, I look forward to hearing your thoughts on how you can make these capabilities a reality for your organisation.