Hiring the right talent and creating a company culture that minimizes employee turnover is crucial to success. However, finding and keeping great employees engaged can be a big challenge.
Creating a comprehensive human capital management (HCM) strategy is important. Here’s how HCM services can support your organization’s strategy and drive continued success.
Understanding the Scope of Human Capital Management Services
At its heart, HCM is about hiring the right people and managing a workforce effectively. Some HCM tasks can be handled by qualified professionals in HR and payroll positions, but small-to-mid-sized enterprises often need extra help to complete these tasks. That’s why they invest in HCM services that provide tailored support with a variety of tasks.
Employee Training
When you hire new employees, you likely provide training so that they can learn their roles. But the training journey shouldn’t end there — ongoing training is important for employee development and company success.
Employee training offers a wide variety of benefits, including:
- Greater employee engagement
- Higher productivity
- Lower turnover
- Improved work quality
- A better corporate culture
Ongoing employee training can strengthen any organization. An HCM provider can help you create a wide variety of training programs throughout the lifecycle of your workforce. Consider training including:
- Onboarding training
- New product and process training
- Ongoing leadership development
Payroll Processing
No matter how much your employees love your company, they won’t stick around unless their pay is reliable and timely. That’s why hiring experienced payroll professionals or working with an HCM provider offering robust payroll services is important. Great payroll services offer:
- Assistance with timekeeping and payroll calculations
- Direct deposit set-up
- Legal compliance support
- Tax calculations for employees
- Creation of annual tax forms for employees
Some employers assign HR professionals to handle payroll duties, but this is a mistake. Payroll is a complex area, and mistakes can have wide-ranging impacts on your business. Working with a provider specializing in payroll is a smart way to ensure payroll goes smoothly and all government regulations are followed.
Benefit & Retirement Support
You need to offer comprehensive benefits to attract top talent in your field.
Benefits packages often include:
- Health insurance
- Retirement plans
- Wellness programs
- Tuition assistance
Providing robust benefits is essential to recruiting experienced professionals in your industry. Remember that competitive pay is just the starting point for hiring and keeping great employees — talent will leave your company if benefits such as retirement plans are lacking.
Retirement plans are important to your company’s overall benefits package, but they can be hard to manage. That’s why it’s a smart idea to work with an outside benefits provider who understands retirement planning, health insurance, and more.
Recruitment
Your HR department is likely in charge of recruiting and hiring employees for every department in your company. While in-house HR professionals do a great job of finding talent to fill departmental and middle-management roles, they might be unable to locate job candidates for C-Suite and executive positions.
That’s why many organizations also work with professional recruiters and staffing companies. Recruiters specializing in your industry have in-depth knowledge of what’s needed for leaders in different roles to thrive. They have connections with promising job candidates and can help cut down on the time it takes to fill open roles.
Understanding How HCM Services Work
There are a variety of options when it comes to HCM services. Some companies work with one provider, offering various services under its umbrella. Others work with individual providers who specialize in certain areas of human capital management. The approach you should take depends on your company’s needs and budget. It’s essential to understand how much these services cost and what you get in return before signing a contract.
Fee-Based Services
Some HCM providers offer fee-based services. If you choose a fee-based service, you’ll pay a set fee for every task the HCM handles. For example, a payroll provider might charge $10/month per employee or $300 per month for between 50-99 employees and $500 per month for 100-250 employees.
Commission Services
Recruiting and staffing services generally work on a commission model. When the recruiter successfully places a job candidate with your company, they might earn 25% of that individual’s base annual pay. These services are generally offered on a contingency basis, which means that you only pay the fee if you actually hire one of the candidates that the recruiter finds.
Subscription Models
Many HCM providers use subscription-based models for services. For example, a talent management platform might charge a monthly or annual fee for access to its services. Subscription models are generally used for services that offer proprietary software or workforce management solutions that in-house HR staff can use.
Looking to the Future of Human Capital Management
New developments in the world of artificial intelligence (AI) are likely to impact how HCM services are delivered. In the future, tasks like payroll and benefits management may be handled by AI systems that can evaluate compliance and complete tasks in just minutes.
However, these developments aren’t likely to replace HR professionals, recruiters, or training professionals. MRINetwork has been providing targeted recruitment solutions for 55 years.
Learn more about what we do, and get in touch to discuss your needs.