By Corey Clacher, Kronos SaaShr Marketing Specialist
As a service provider, you’ve likely heard the term “Human Capital Management” (HCM) being used more frequently in the industry. With the continual advancement of technology and the evolution of the typical service organization into a one-stop-shop for all of their clients’ workforce needs, the term “Workforce Management” (WFM) is losing its foothold and becoming industry jargon of the past. If you’re still using the term “WFM” when referring to the solutions you offer your clients, you may want to consider transitioning your marketing to focus on HCM in order to better represent what you’re offering your clients.
You may be asking yourself if there’s really a difference in meaning between the two terms or if they can be used synonymously to mean the same thing. Fortunately, I’ve come with answers to your burning HCM questions. In short, yes the terms are different and no, you shouldn’t use them interchangeably when referring to your automated platform. I’ll tell you why below.
To put it simply, look at WFM as a subset of HCM. WFM solutions cover areas such as clients’ time and attendance, scheduling, and absence/ACA management needs but don’t necessarily incorporate other areas of workforce needs like HR and payroll. However, a proper HCM solution handles ALL of your clients’ needs, encompassing areas of HR management like benefits administration, recruitment/talent acquisition, and compensation management in addition to payroll management such as tax filing, check printing, and gross-to-net calculations. If you’re a full suite Kronos SaaShr licensee, hopefully you’re leveraging your technology offering as a complete, all-in-one HCM solution.
Of course, not all HCM solutions are created equal. And while some vendors claim to offer complete and integrated HCM solutions, under the surface they simply aren’t. At its core, integration between time management, scheduling, HR, and payroll modules are essential to be classified as a true HCM platform. Of course, the Kronos SaaShr HCM solution takes it a step further by offering one single unified platform for the entire workforce. That means a single employee record, a single source of truth, and a single user interface between all modules.
A unified platform means a single login to access all system capabilities and a common user interface, database, reporting engine, and security point. These capabilities allow users to view key data in real time and help to eliminate error-prone duplicate data entries and reduce reporting complexities that lead to noncompliance risks.
When offering one unified HCM platform to your clients, you should have a fully comprehensive solution that can address the needs of their entire workforce, empower their employees with self-service tools, and enforce their policies accurately and consistently. Providing your clients with an automated HCM solution to streamline their administrative tasks allows them to attract and retain top talent, successfully manage the employee lifecycle, engage their workforce, and most importantly, allows them more time to focus on people, not processes.
So the next time you’re demonstrating the features and benefits of your HCM offering to a prospect, don’t sell yourself short. If you’re a Kronos SaaShr licensee, you’re at the forefront of HCM technology. You no longer offer just a WFM tool, you provide your clients with a unified HCM solution backed by your expertise and support to handle all of your clients’ workforce challenges.