Choosing an HCM System: Don’t Forget the Human Factor

When organizations go shopping for a human capital management (HCM) system, the process often starts with a spreadsheet. A concise list of requirements is drafted, and the goal becomes finding a vendor that can check most boxes. On paper, that approach seems logical. In practice, it may not be the most effective strategy.

Your HCM system is unique as it’s one of the few platforms almost every employee in your organization interacts with – whether they’re logging time, checking pay stubs, enrolling in benefits, or requesting vacation. If the system doesn’t work for your people, then it’s not effective.

Why User Experience Makes or Breaks HCM

Your HCM platform has to work for the entirety of your organization, which may consist of:

• Varying work locations, from office employees at their desks to field employees with only a smartphone to remote employees working from home.
• Generational spread, including digital-native twenty-somethings who expect mobile tools and older employees who may consider apps foreign territory.
• Vast skill sets, with tech-savvy professionals who can navigate complex dashboards, working alongside employees who simply want an easy way to clock in.
• Busy managers who may be drowning in tasks, with no time to click through multiple screens just to approve a vacation request.

An effective HCM system doesn’t just “check the box” on features – it adapts to all of these realities.

Industry-Specific HCM Needs

• Construction: Complex labor allocations, job costing, union rules, and certified payroll – layered on top of field crews who may not be tech-savvy and often work in remote locations – require a powerful and straightforward HCM tool.
• Non-profits: Volunteers or part-time staff won’t struggle through clunky time and expense tracking – they’ll stop meeting reporting requirements, risking funding.
• Municipalities: Departments ranging from police to parks to public works may track hours differently. Their HCM platform must be flexible across departments.
• Healthcare: A 24/7 environment where compliance and staffing ratios aren’t optional requires an efficient and easy-to-use HCM system.

Ultimately, if your HCM system isn’t designed with human factors in mind, your people may actively work around it.

The Risks of Minimizing the Human Factor in HCM

Many organizations often fall short because they zero in on desired features and disregard adoption. This results in:

• Disconnected systems: Payroll is managed in one place, while scheduling and benefits are handled in another, causing employees to get lost in the shuffle and HR to perform data transfers that should be automated.
• Manual workarounds: If employees dislike your HCM system, they’ll find ways to circumvent it, potentially through spreadsheets and sticky notes.
• Low adoption: A clunky interface may lead to employees avoiding the system for as long as possible. When they do adopt it, expect errors and incomplete data.
• Manager frustration: If approving a time-off request is a frustrating task, managers might delay it or push it back to HR.

Sticking with an outdated HCM system isn’t safer. In fact, it risks your organization falling behind while others adopt innovation.

The Right Questions to Ask Vendors

To avoid paying for shelfware, ask questions that go beyond features:

• Who is really using this system? Will it flex for your remote staff, field crew, and desk workers, or does it assume everyone is office-based?
• Is it adaptable? Does the system scale across mobile and desktop – and to different skill levels?
• What does support look like? Does the system come with a dedicated contact who understands your organization and workforce?
• Does it reduce the burden? Seek out automation and workflows that cut clicks. If the system makes life more complicated, adoption will fail.
• Are you eliminating silos? Modern HCM should replace legacy tools, rather than bolt them onto existing systems.

A Balanced Approach to HCM

Accuracy, compliance, and reporting are all critical, but the right HCM solution should offer more than just innovative features. Your system must also work for your people. An effective system encourages high adoption, which improves compliance, data quality, and ROI.

At CBIZ, we believe your people are your business’s most valuable asset. It’s essential to partner with an HCM service provider that will prioritize your workforce needs and ensure you’re able to maximize your talent at all times. Our solutions give employers enhanced control and increased flexibility, allowing you to focus more on the bigger picture and less on the day-to-day challenges of managing a growing workforce.

Contact us to explore innovative HCM solutions.