Human capital management (HCM) software is a digital repository of human resources applications pertaining to employees and applicants. HCM software brings all company paperwork and forms into a centralized platform, usually cloud-based, so that HR personnel can access employee data and manage job candidates. HCM software, like other HR platforms, typically includes employee management, talent acquisition, and limited employee self-service features.
Common acronyms for human resources (HR) applications include:
- HCM—human capital management
- HRIS—human resources information system
- HRMS—human resources management system
Benefits of HCM software
- Human capital management software creates a unified platform in which HR information is accessible in one portal. Typically cloud-based, the platform can be accessed by both in-office and remote HR teams and employees.
- The software empowers employees some HR tasks and access their benefits and data. The amount of self-service employees can perform within the platform varies between solutions. Common self-management abilities include requesting time off, viewing their organizational chart, viewing their compensation and paystubs, and submitting performance reviews.
- By largely replacing physical paperwork, human capital management software streamlines human resources services like document capture and storage, payroll management, benefits elections, recruitment, and onboarding.
Features of HCM software
Common HCM features include:
- Applicant tracking
- Candidate management, such as resume and cover letter storage
- Job posting capabilities
- All employee forms, including benefits paperwork and financial statements
- Benefits information
- Customizable time-off policies
- Performance assessments
- Financial data like compensation and paystubs
- Time off requests and other time management features, like time clocking
Popular HCM software
Top platforms are valued for their:
- Comprehensive combination of applications
- Intuitive and modern user interfaces
- Secure cloud-based nature
- Integrations with other business software, including accounting, recruiting, and e-sign programs
Top software includes:
- Oracle HCM Cloud
- SAP SuccessFactors
- Sage HRMS
- NetSuite SuitePeople
Read More: Best HR Software Solutions for 2021