Scm

The future lies in HR focusing on strategic people

management activities rather than administrative

deliverables and most organizations have started

to use some measures of human capital -

headcount, turnover, and productivity - or make

some assessment of the value produced.

However, there are certain principles you need to

consider to maximize the benefit you receive

from using Human Capital Management (HCM).

An effective tool for HR value proposition

1. Quantify the deliverables.

The power of measurement is not the metrics or data you collect.

Rather, the benefit comes from your ability to use the information to

diagnose your organizational situation and make better decisions to

move the business towards its strategic goals. Organizations should

review current metrics available through technology in the light of their

use for decision-making.

2. Guide people decisions.

HCM is not about proving the value people add to the business; good

leaders already have this fundamental philosophy. It is about guiding

investment decisions and understanding the benefits and trade-offs in

people decisions.

3. HCM is an integrated HR Tool

HCM ranges from basic metrics to comparative information, from

scorecards to predictive models. To succeed with HCM, organizations

need to select the HCM approach that aligns with their context and

needs. This need could be developing or identifying key metrics, setting

performance levels or measuring the ROI of HR practices.

The future lies in HR focusing on strategic people

management activities rather than administrative

deliverables and most organizations have started

to use some measures of human capital -

headcount, turnover, and productivity - or make

some assessment of the value produced.

However, there are certain principles you need to

consider to maximize the benefit you receive

from using Human Capital Management (HCM).

Major focus is on modules like performance

management system & training management

Strategic Business

Partner

Administrative Employee

Champion

Change

Agent

Self-service and administrative modules of HCM

4. Focus on people value and not the cost

Many organizations understand their people costs quite well. However,

not all of them consider how people help the organization achieve its

goals. Consider the person who works late to check the accuracy of a

customer order or the person that comes up with efficiency

improvement ideas. Both of them add value well beyond their costs.

HCM helps you to understand the value.

5. HCM brings business acumen in HR.

HR is often viewed as the softer side of the business. It often struggles

to demonstrate its value. As HCM takes root in an organization, "soft"

measures become performance focused and demonstrate value

creation; this buys HR credibility with the line and a place at the

decision-makers table.

6. Higher ROI through employee engagement.

A variety of tools are available to help your organization focus on

growing