Making HR Strategic: Integrated Human Capital Management Holds The Key

Change is the only constant holds true for every sphere of life but when it comes to business changes in business environment, consumer preference, and political climate could be very swift and unpredictable. Only those will succeed in long run that can tread over the change and adapt itself. Short term adjustments will not last long and only a business with a strong Strategic goals and vision can last long.  Human resource management is the key to implementing these strategic goals and they are the mitochondria that power the business.

In recent time, huge importance is given to building strong and capable team and retaining them, as replacing a human resource is a costly and time consuming affair. Employees are no longer a work machine but rather assets of the company and constant efforts are made enhance their skills, loyalty to the organization and give them great working environment that spurs their productivity. For this purpose, renewed importance is given to HR data to ascertain performance goals and results, development priorities, identifying potentials and drawing up lucrative incentive and rewards scheme.

Self-motivation comes when an employee is made aware of his role and contribution in the success of the organization and is compensated in line with his/her performance. Having defined career paths, detailed succession plans, personalized training paths increases transparency and sets goals to be achieved.

But the problem that has been plaguing HR department of many organizations today is developing the right HR information flow system. For this purpose, performance review is periodically conducted but there is huge chance of personal bias creeping into it, moreover what are correct parameters of performance is difficult to ascertain as different roles have different challenges and goals. It is difficult to set a uniform parameter for all.  

 An innovative solution to this problem is seeking help of single vendor that integrates all the data from multiple HR processes. It not just does performance review but also plugs in the gap by recommending remedial training or compensation that should follow with the review. It makes the HR jobs a lot easier and transparent. It also helps gauge the effect of one process on the other;

 For example, organizations can compare the effect of a manager taking a leadership training course to improvements in that manager’s leadership skills based upon feedback from surveys given to his or her direct reports.

The lifecycle of HR career is often considered hectic as they spend most of the time in collating data, hiring, analyzing performance and this task needs lot of energy and time, because of which HR is not able to devote time to other vital roles like skill up gradation of employees, redefining goals with changing priorities of business, drawing compensation etc. This ultimately leads to loss of talent and business potential.

To overcome this problem the role and priorities of HR should be clearly defined and they are as follows

  • Recruit & Hiring
  • Performance Management
  • Enterprise Compensation Management
  • 360 Degree Feedback
  • Learning & Career Development
  • Succession Planning

The following section outlines the applications required for each HR process that makes up for a successful integrated HCM system.