5 Key Features To Look For In Human Capital Management Solutions

September 23, 2023

Human Capital Management Solutions

Human capital management solutions provide the tools necessary to manage a company’s employees. The ideal solution will work for the business, augmenting and enhancing current processes and culture without disrupting them.

A robust human capital management solutions should include sourcing and recruiting software, goal and performance management, career development and learning, talent review and succession planning, and more.



It’s important to consider the scalability of HRM solutions. As your company grows, you will need a system that can grow with you and adapt to the changing needs of your organization. For example, if you have trouble hiring employees for specific positions, the system should be able to accommodate additional applicants.

A robust human capital management system should include applicant tracking and onboarding, employee performance management, and a time off/vacation tracker. In addition, the software should enable HR professionals to view reports and dashboards with real-time data. The system should also provide built-in compliance reporting to ensure the business meets its legal obligations.

A unified HCM software solution is the most effective way to streamline human resources work processes. All your core HR applications, such as recruitment and applicant tracking, employee onboarding, payroll processing, benefits administration, and workforce analytics, reside in one holistic platform. This eliminates the need for HR staff to manually reenter the same information across multiple applications, which saves time and reduces errors.


Integrated systems are often a key selling point in HR software. The idea is that a single suite of solutions from a vendor handles everything from hiring to performance management to workforce analytics. Alternatively, companies can choose separate systems for different processes. However, using various standalone systems can add complexity to an organization. It can also make it difficult to understand data from disparate sources.

A fully integrated HCM solution can reduce the manual work of collecting, cleansing, and aggregating data from multiple systems. It can also allow HR teams to spend more time analyzing data and taking action.

Many human resource management solutions offer integration features like resume parsing, candidate screening, and interview scheduling. Some may even include a background check solution. Others can integrate with learning management systems to track employee progress and professional development.

In addition, HR professionals can use integrated solutions to manage compliance issues such as ACA and COBRA reporting. This helps to minimize the risk of fines and other legal implications.


Employees want to feel like their managers and HR professionals have them in mind regarding their career progression. An internal mobility program allows employees to see the possibility of moving into a new role in your organization, boosting engagement and retention.

Talent mobility also helps you create a strong leadership pipeline and ensures your employees have the opportunity to grow with your business. It can help you match employees with roles that suit their skills and interests, leading to greater job satisfaction and increased productivity, efficiency, and loyalty.

Many HR software companies offer all-in-one solutions that allow you to manage various HCM functions on a single platform, such as recruitment, applicant tracking, performance management, time and attendance, and leave management. Alternatively, you can choose a best-fit suite solution that offers specialized functionality for different needs.


Every HR department is a goldmine of data, from compensation numbers to recruiting information and performance measurements. However, it’s not enough to collect and store the data – you need the right tools to analyze it to make real business improvements.

The best human capital management systems can translate the meaning behind your HR data with intuitive analytics tools. Instead of a simple report that displays static text and numbers, these systems present your data in a visually appealing format like graphs and charts. This helps your team identify trends and patterns that can catalyze change more easily.

Some systems can also analyze your current data sets to generate predictions about future outcomes. This technology, known as predictive analytics, can be a vital tool in your human capital management solutions arsenal. It can help you spot issues in your hiring process, for instance, so that you can address them before they become serious problems. It can also determine whether your employees are suited for specific jobs, which can help reduce turnover rates and boost productivity.


Keeping digital information secure is a top concern of any company using an HRM system. HR systems should use data encryption and feature role-based access controls to ensure only authorized personnel can see sensitive employee information. These features also make it difficult for malware to circumvent security protocols by encrypting files.

In addition, a good HR system should allow for automatic backups and storage in an offsite location. This will minimize the risk of lost or stolen information and eliminate the need for HR professionals to worry about onsite server maintenance.

Lastly, an effective HR solution should enable the organization to manage payroll and other administrative costs. This may include tracking data around benefits, which can help a company negotiate rates with insurers and reduce the amount paid out in premiums. It can also include employee engagement features that reward employees for healthy lifestyle behaviors, such as a wellness program or a competition based on fitness goals. This helps control rising healthcare costs for the company and keeps employees happy at work.

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Barsha Bhattacharya

Barsha Bhattacharya is a senior content writing executive. As a marketing enthusiast and professional for the past 4 years, writing is new to Barsha. And she is loving every bit of it. Her niches are marketing, lifestyle, wellness, travel and entertainment. Apart from writing, Barsha loves to travel, binge-watch, research conspiracy theories, Instagram and overthink.

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