The key to breaking down barriers in human capital management

The human capital management ecosystem is fragmented, which is only creating more difficulties for employees and the HR personnel.

. As the vendor landscape is changing, more products and solutions coming to market are built around AI, mobile apps and consumer-like experiences. (Image: Shutterstock)

Today’s HR professionals face a plethora of obstacles, but one that is often overlooked involves  the platforms used to track and streamline employees and company policies. According to ADP, employers around the world currently manage an average of 33 separate payroll systems and 31 HR systems.

To effectively manage the 21st century workforce, the HR landscape needs to constantly evolve to accommodate it. Employers are being pressured to rewrite rules on how they recruit, manage, organize and engage this new workforce – which makes them think about the foundation of their systems. Everything from managing purchase orders to requesting time off to the larger employee database requires a different HR system. Rarely do all of these capabilities exist on one platform.

Related: Three reasons to integrate HR into benefits tech

The HCM (Human Capital Management) ecosystem is fragmented, which is only creating more difficulties for employees and the HR personnel responsible for keeping everything running smoothly.

The modern HCM system is an opportunity

There are many employers who see this more-digital, more-global and more-diverse generation of workers as a problem. In reality, this should be viewed as an opportunity. A chance to re-imagine the tools they are using to create platforms that set employers and employees up for success. So how can this be accomplished? It all comes down to data. Integrated data, to be specific.

Making the most of this new opportunity means having the ability to re-imagine HCM at its core. The modern HCM system must incorporate accurate and integrated data to increase efficiency. As the vendor landscape is changing, more products and solutions coming to market are built around AI, mobile apps and consumer-like experiences. And employees and HR professionals are realizing the levels of efficiency attainable through modernized HCM systems.

How integration can drive the HCM experience

Building the right combination of HCM solutions certainly doesn’t happen overnight. When you think about all the systems currently in place, it’s highly unlikely that they are working together to provide companies with data and results that are useable and digestible. The focus should be on a “one-to-many” approach – look for ways to write one API that integrates across all HCMs to reduce company costs and increase the company efficiency.

The goal here is to run a fully functioning integrated system that lets people perform their employee-related tasks without moving between environments or taking users out of context. Just like consumers expect a seamless experience across apps on their phone, the same thinking should be applied to HCM.

Once the silos between those different HCM systems are broken down, a company is left with the ability to utilize best-of-breed applications for their HR needs that can all work together under a single platform. Here are some things that an integrated HCM can provide:

Leveraging one API integration that connects all the best-of-breed HCM services (like NetSuite, Oracle, PeopleSoft etc.), enables easy access to map and normalize data, simplify the UI process and even manage user access like authentication, updates and monitoring all-in-one.

Being able to deliver consistent and personalized experiences for employees dependant from occupation, location and other factors is the goal. The focus needs to be on workforce engagement and connection to employees rather than just process and policies. The solution is simple: Don’t be afraid to modernize the HCM system – the new and modern workforce is expecting it.

Ross Garrett is VP of marketing and product at Cloud Elements.

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