Human capital management (HCM) is an approach to human resources that values employees as business assets rather than just people doing jobs. An HCM approach makes it possible to measure the value of individual team members and anticipate future value based on the company's investment in those team members.
The HCM principle does have its detractors. Nonetheless, it has a long-established foothold in American business. As such, we make it a priority to track HCM trends that we believe will drive recruitment and payroll. There are four such trends we have our eye on for 2020.
1. Less Emphasis on HR Processes
Ask any HR manager how the company goes about hiring and you will hear an awful lot about process. What you will not hear is any quantifiable means of discerning whether or not that process actually produces the best possible results. The good news is that companies are coming to the realization that processes can be meaningless.
As new technology takes hold, we foresee HR departments placing less emphasis on processes and more emphasis on data and personalization. Process will give way to individuality and job specificity. Candidates will be considered more for their ability to contribute than their ability to follow a process.
2. Holistic Integration of Payroll and HR
Speaking of new technology, it is quickly blurring the lines between payroll and HR functions. That is a good thing, especially since many small businesses combine the two into a single department anyway. That trend will only continue as we move through 2020. We expect to see a lot more holistic integration of payroll and HR functions as new technologies are adopted.
A good example would be a technology that integrates both payroll and applicant tracking in a single system. Another would be a solution that combines applicant tracking with data analytics to help management understand the success of their recruiting strategies.
3. Greater Recognition of the Human Factor
Unfortunately, one of the key principles that has been lost in HCM over the decades is a recognition that employees are people first and assets second. This could be the year that companies refocus their recognition of the human factor. We are already seeing a move in that direction with instant payroll solutions.
Companies are recognizing that forcing employees to wait two weeks or more for pay they have earned today sends the wrong message. Thus, they are embracing instant payroll solutions that allow employees to receive at least a portion of the wages they have already earned, on demand. These sorts of solutions make the employer-employee relationship more human by recognizing that employees are people with needs outside the workplace.
4. More Collaborative Leadership
Perhaps the least understood trend we see on the horizon is one of collaborative leadership. Top-down leadership is still the preferred way of doing things, but HR departments are slowly warming to the idea of replacing that model with a more collaborative one.
In a collaborative leadership scenario, those in positions of authority do not make isolated decisions. Instead, they collaborate with every member of the team with the understanding that each employee's input leads to better decision-making.
Human capital management is a long-standing institution in American business. However, it is subject to change. HCM is gradually evolving along with the state of the American workforce. Its evolution will mean significant changes as we move through 2020.
BenefitMall is here to assist companies with payroll, benefits administration, and select HR functions. To learn more about how we can help your company succeed, please do not hesitate to contact us.