Article: Transformation in the Human Capital Management terrain


Transformation in the Human Capital Management terrain

The fast-paced HCM solutions landscape has created an equally dynamic market that fosters a regular stream of new challengers and heavy pressure on players.
Transformation in the Human Capital Management terrain

Without a doubt, talent is an organization’s most prized asset. With time, while the importance of talent has not diminished, the availability of solutions (both technology and services) to enable and improve Human Capital Management processes has developed dramatically. 

Against a rapidly evolving backdrop, decision makers and HR practitioners should be able to make informed choices, that enhance human capital as well as business outcome in their organization. 

Advances in HR technology

Cloud delivery, mobile applications, social/collaboration, and analytics are enabling new capabilities in organizations today. It covers a wide spectrum across HR including real time peer feedback, virtual recruiting, and predictive analytics for critical indicators such as flight risk, joining probability analysis, attrition modeling, engagement and career development.

With innovation in the solution and vendor landscape, the question no longer revolves around the importance of HR Tech. In fact, the conversation today has shifted to how to overcome challenges to successfully assemble, integrate, and manage a portfolio of Human Capital Management (HCM) solutions. 

Evolving needs and solutions

HR leaders are transforming HR operating models in response to the changing business environment, volatile labor markets, and developing organizational needs. Added to this are the complexities of today’s digital workplace.

HR service delivery increasingly blends automation, content and human interaction (often by combining technology and outsourced solutions) based on variables such as required skills/competencies, employee types, geography and demographics. Thus, HRIT leaders need to review their solution strategies at least annually, within the context of the organization’s overall business application strategy and strategic operating plan.

By doing this they will understand that HCM technology strategy is not a one-size-fits-all project. And continuous evolution will be the smartest way to approach it.

People analytics for smarter decisions 

Progressive leaders are focused on ways to accurately measure and increase employee engagement – while optimizing overall HR cost per full-time equivalent.

They want to manage the efficiency and impact of HR policies and practices. They assess the organization’s health and culture by combining both formal and informal networks to gather data and enable effective analysis. These initiatives, along with the growing amount of information collected about employees in connected workplaces, are driving demand for improved workforce analytics.

As new analytics capabilities and technologies emerge, it is imperative for HR and business leaders to contemplate how these new insights can be used to drive better decisions and business performance.

Optimizing investments in HCM applications

Successful HCM technology deployments require organizations to consider a number of variables that go beyond the technology itself. Often, organizations overlook things like workforce demographics and corporate culture, the definition of end-user success, current team dynamics, employee engagement, and the timeliness and fluidity of social interactions.

At the same time, it may be difficult to find that one tool that solves everything. Solutions, especially those in the form of Software as a Service (SaaS), allow for easy interaction between each other, allowing for complete integration with existing or new technologies. These solutions also have a very transparent pricing strategy. Thus, the idea is to find an ensemble that solves majority of pain points without burning a hole in the pocket.

HR and HRIT leaders will need to carefully consult with experts to identify the best potential ROI for their HCM solution business case while avoiding decisions that are likely to result in wasted resources and/or underperforming software assets.


The fast-paced HCM solutions landscape has created an equally dynamic market that fosters a regular stream of new challengers and heavy pressure on players. There are solutions that understand the science behind matching the right person to the job through data science. Talent transformation, which includes re-skilling, up-skilling, understanding of learning paths for career progression, has become the cornerstone for such solutions. Understanding personality traits and culture fitment are also areas of active research. Companies that take the time and effort before making the investment to build HCM capabilities will likely out-perform their competitors significantly in the years to come. 

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Topics: HCM/HRMS/HRIS, HR Analytics

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