It's All About the People!
It's All About the People!
"I have no way of knowing the exact cost of goods sold for my new line of cereal," the CEO of a food manufacturer recently told me. "Our timekeeping software doesn't break down who works in what part of the factory for how long, so I can't specifically apply labor costs to the individual products." He paused, frowning. "But I'd sure like to." After a longer pause, he looked at me. "Is there something out there that will do that?"
There certainly is.
Not only could the CEO implement a software solution to his problem, but he could also mine all sorts of data collected on his employees that would take him far beyond the capability of his current payroll software. At the touch of a button, he could analyze the performance of his staff, comply with requirements for insurance and vacation, and even recruit new talent.
Human Capital Management Systems (HCM) are now so recognized as a powerful tool to manage and optimize workers that the production of this software has become a multi-billion dollar business.
What can HCM do?
Imagine if all of the data to which you need access regarding your staff was available with the push of a button. Such varied information as anniversary dates, I-9 information, and special skills all compiled and ready to use. You would be able to effortlessly apply labor costs to learn the true costs of production.
With staff grouped by department and tagged for projects, the process of engaging with the employees based on real and relevant data will be a valuable function. The employees can each view their own dashboard for updating data and, mostly importantly, to engage in personal improvement. Staff development tools are built into many HCM systems. Recruiting new talent is another popular feature.
In fact, a large array of functions are available, including Recruiting, On-Boarding, Performance Management, Succession Management, Compensation Management, Benefits Administration, Timekeeping, Payroll, and Exiting.
HCM Value to Your Business
Create a company culture of continuous engagement using HCM.
Get your system in the cloud with SaaS to make it easier for employees who are mobile.
Employ Artificial Intelligence (AI) to transform the analysis of data.She was able to obtain the financials and other data she needed on a regular basis.
Your Cost of Goods Sold (COGS) will be sharper than ever before.
You will be able to efficiently calculate departmental and project labor cost data.
HCM Integration with Enterprise Resource Planning (ERP) Systems
The benefits of choosing an HCM solution that has a strong handshake with your ERP system are exponential.
But a word of caution is in order. Just because the brand name of your HCM solution matches the brand name of your ERP does not mean it will be the best solution for you. A solution from a different company may end up serving you better for how you run your business.
The End of Our Story
The food manufacturer CEO, after implementing HCM, was amazed at what he learned about his people. He found talent in his own staff for projects that he otherwise would have outsourced. He gathered information on product labor costs that revealed a truer Gross Margin calculation. He found his staff achieving goals using the system to work in teams. A total win for the company!
HCM and Your People
Now that you have decided to look into HCM, think thoroughly about the results you hope to achieve. Look at your biggest information requests and imagine how you might change your processing of data to simplify your analysis.
There are over 200 HCM-related systems to evaluate and they range in price depending on your company's size. A great HCM system will support your people and the growth of your business.
If integrating a new HCM seems like a tall order, give us a call and we will help you choose and implement the best system for your company.
We know HCM. We know ERP.
Call RJMC. We will fast-track you to get the best system, smoothly.
We will guide you and your chief influencers into making the best decision for getting the new system implemented and delivering results that you have only dreamed about until now.
RJMC is expert in IT Systems planning and decision making. Call us at the beginning of your project and we will give you the best pathway to success.
Rubenstein / Justman Management Consultants (RJMC) assists mid-market companies to evaluate, select, and implement ERP solutions. Extraordinary support from skilled and experienced consultants. To find out if your business is ready for a change, give us a call at 310-445-5300 - we know HCM. we know ERP.