In todays world, Human Capital Management (HCM) has become a necessity. Companies need business intelligence to prosper, HR departments included. So, if a businesss future depends on incoming talent, why do companies send out their HR infantries without the support to hook the right candidates? The only weapons in many HR departments arsenals are psychology and perception, which is not enough evidence to make critical hiring decisions. HR needs business intelligence.
Now, cue in Human Capital Management (HCM) and business intelligence software, which is finally available to HR Departments. BI gives HR a leg to stand on beyond résumés and GPAs, and that extra boost of information in todays competitive market can make the difference between surviving and thriving.
To give you an idea of how badly HR Departments need a makeover, a survey completed by the Economist Intelligence Unit (EIU) in May of 2012 asked 235 CFOs and CEOs to rank the performance of their HR departments. The results struck many HR representatives speechless.
Only 16 percent of C-level individuals ranked their recruiting of new talent as excellent, and only 12 percent ranked HR departments highly for developing key talent. Also, over 50 percent of C-level executives said their organizations would suffer in one year if a continuous stream of talent didnt pass through their doors.
Albert Einsteins definition of insanity is doing the same thing over and over again while expecting different results. The answer is simple: HR Departments cannot continue to function the same way they have in the past. Change is coming, and companies that want to maintain their competitive advantages need that steady flow of talent.
And hiring the right people isnt going to cut it; retaining that talent is just as important. Intelligence on why people leave and at what stage in their careers they are more likely to jump ship is extremely valuable to a businesss planning, training, and overall retention rate.
Even the United States government has jumped on the HCM bandwagon. According to a report done by the U.S. Government Accountability Office (GAO), companies should consider implementing some form of HCM for the strategic planning capabilities.
Overall, Human Capital Management Systems have changed the way companies recruit and retain employees. It's beyond time to change the way you are thinking about your best asset, your human capital.
Need to get up to speed? Download the ebook on how to build a winning HR strategy.