De-mystifying Series: What is HCM?

Rachel Illingworth Koeling

Businesses dedicate extensive resources and time to their number one commodity — their workers. The economic landscape has shifted. Now, it's important for businesses to offer a positive and rewarding Worker Experience (WX) to their employees. Companies are learning to foster an atmosphere of agility, productivity, and engagement through dedicated human capital management, or HCM.

A short history lesson in HR

Horrible work conditions during the Industrial Revolution were concerning to two social reformers, Robert Owen and Charles Babbage. They believed that “the well-being of employees led to perfect work.” And “without healthy workers, the organization would not survive.”


But the field of human resources didn’t formalize until the 20th century. And for decades after, businesses wanted to grow employee efficiency for bigger profits. As a result, HR staff in many companies spent countless hours putting together reports and other manual processes, instead of higher value strategic initiatives.

With the digitization of our economy, a new philosophy evolved out of antiquated HR practices. The concept of "human capital" put emphasis on a person’s work performance, over the business's profit. And in attempts to ease HR’s workload, executives assembled various legacy systems. Little did they know that working from multiple legacy systems can stall work and confuse workers.

HCM is a cloud platform developed to simplify, digitize, and update decades of HR administrative work. To stabilize and foster growth, HCM organizes and aggregates employees’ skills and talents.

Successful companies (like Moen) access their HCM program on one, integrated CRM platform via the cloud. Now, HR experts use HCM programs to plan, develop, and build upon the worker talent pool, with the goal of reinforcing the company’s ROI and ensuring an enhanced WX.

Benefits of HCM?

Catapulting from logging into several software systems, to one HCM solution with a single login can be daunting. But there are many benefits to utilizing HCM. The most noticeable feature being that your workers log into the system once. This minimizes login errors while offering one place for all your HR employees to access employee records.


With HCM, HR can collaborate together on payroll, benefits, and training. Even more, integrating a HCM platform means not having to worry about updates and new features. Your developer can deploy updates from a distance without interrupting your service.

HR employees use HCM's predictive analytics for data collection. With this data, HR better understands worker needs, and can better supply the tools, time, and learning opportunities for WX success.

What does an HCM strategy look like?

As with any transition, it may take time for your company to adapt to the new CRM platform. To ensure transformational success, it’s important to consider and plan around WX throughout the implementation.

Your workers may encounter roadblocks and experience frustration. But once you’ve strategized a road map that keeps WX in mind, you can prepare your employees for an enhanced HCM experience. Aim to grow your workforce with the help of HCM, not weed workers out.

What does HCM success look like?

Instead of having one system for recruitment, another for payroll, and another for learning, it makes more sense to think about HCM as one cohesive system. Businesses who have adopted HCM have a dedicated platform that supports more engaged, productive, and agile workers.

HCM platforms not only measure the value of your employee’s work, but also builds on their future value. HR uses it to figure out how to foster growth and engagement, and can pull information on employees to plan talent acquisitions, training, and retention.

Implementing an HCM platform means your business has the data and resources to provide a more rewarding WX to employees. If you’re ready to discover a HCM strategy customized to your business, contact our experts for a free Virtuous Cycle Diagnostic Workshop.

Previous Article
Counting Down Appirio's Top 10 Most Popular Blogs of 2017
Counting Down Appirio's Top 10 Most Popular Blogs of 2017

These blog countdown results prove that the Virtuous Cycle is now in full effect. Worker and customer exper...

Next Article
Humanizing the Patient Experience with Collaborative Care
Humanizing the Patient Experience with Collaborative Care

As consumerism continues to affect the healthcare field, patients are taking an increasingly active role in...