Choosing an HCM Platform: A Comparison Guide

Selecting a human capital management (HCM) platform is crucial, yet complicated for HR leaders, as there are many options to evaluate.

This comparison guide promises to clearly break down the key players in the HCM space and provide an analytical framework to assess which platform best aligns to your organizational needs.

You'll get an introduction to HCM technology, learn how to decode the extensive list of HCM tools, evaluate top HCM software vendors like Workday and Oracle, discover the must-have features to consider, and walk through a step-by-step process for choosing the right HCM partner to drive ROI.

Introduction to Human Capital Management Platforms

Human Capital Management (HCM) platforms play a pivotal role in modern HR technology. As organizations grow, managing people-related processes efficiently becomes critical. HCM software provides integrated systems to streamline HR workflows and enhance the employee experience across the talent lifecycle.

The Role of HCM Technology in Modern HR

HCM platforms help automate routine HR tasks like:

Benefits enrollment
Payroll processing
Compliance reporting
Employee records management

This saves HR teams significant manual effort so they can focus on more strategic initiatives like:

Building company culture
Designing competitive compensation plans
Fostering inclusion and belonging

According to Gartner's latest HCM software guide, the top benefits of HCM systems include:

83% faster new hire onboarding
31% improvement in workforce productivity
27% boost in employee retention

Decoding the HCM Tools List

With so many HCM products on the market, selecting the right platform can be daunting. Key aspects to evaluate include:

Core HR capabilities: applicant tracking, onboarding, payroll, benefits admin, etc.
Talent management features: performance management, learning, career development and succession planning.
Employee experience: mobile access, user interface, analytics and engagement.

Leading solutions recognized by industry analysts like Gartner and Forrester include:

Workday
SAP SuccessFactors
Oracle HCM Cloud
UKG Pro

How Human Capital Management Impacts P&L and Margins

HCM technology provides a positive ROI across key financial metrics:

Reduced HR operation costs: By optimizing workflows, HCM systems cut HR expenses by an average of 23%.
Increased productivity: With automated processes, employees can focus on high-value responsibilities, driving workforce efficiency gains up to 31%.
Higher revenue per employee: Companies using HCM solutions see over 15% greater revenue per employee by retaining and engaging top talent.

In summary, HCM platforms are a strategic investment that generates significant cost savings, productivity improvements, and revenue growth.

What is an HCM platform?

An HCM platform is an integrated suite of software applications designed to manage a company's human capital from hire to retire. HCM platforms streamline and automate key HR processes like:

Recruiting and onboarding
Payroll and benefits administration
Performance management
Learning and development
Workforce analytics

Some key benefits of HCM platforms include:

Centralized data and processes: All employee information and HR processes are accessible in one system for more efficiency and data accuracy.
Increased productivity: By automating administrative tasks, HR staff can focus on more strategic priorities.
Enhanced analytics: HCM systems provide real-time reports and dashboards to uncover workforce insights.
Lower costs: Integrated systems eliminate the need for multiple niche solutions, reducing licensing fees.

Popular HCM platforms like Workday, Oracle, SAP SuccessFactors, UKG Pro are feature-rich solutions covering the entire employee lifecycle. Small businesses can also benefit from HCM technology with options like Gusto, BambooHR, Zoho People meeting their core needs.

When evaluating HCM platforms, key considerations include:

Integrations with existing infrastructure
Configurability to support current and future processes
Intuitive user experience and change management features
Ongoing customer support post implementation

The right HCM platform can be a strategic investment towards attracting and retaining top talent over the long term.

Which HCM tool is best?

When evaluating HCM platforms, there are several key factors to consider:

Scalability

If your organization plans significant growth, prioritize solutions like ADP Enterprise HR that can scale with ease. Key features include:

Flexible configuration to support organizations of all sizes
Automated workflows to streamline processes as headcount grows
Custom reporting dashboards to analyze data across the employee lifecycle

Budget Alignment

An HCM that aligns to your budget strategy is critical. isolved is cost-effective, with options like:

Affordable monthly subscriptions
Per employee pricing models
Flexible payment terms

Succession Planning

Strong succession planning functionality is offered by solutions like Paycor. Capabilities include:

Internal talent pool tracking
Automated role/skill gap analysis
Succession workflow tools

Strategic Workforce Planning

If workforce optimization is a priority, consider Oracle Fusion Cloud HCM for data-driven features like:

Organizational modeling
Labor cost projections
HR analytics dashboard

Evaluating key differentiators allows smarter HCM purchasing aligned to organizational priorities. Define must-have capabilities, then compare solutions against these needs.

Is Workday a HCM platform?

Workday is considered one of the leading HCM platforms available today. Here is a brief overview:

Key Features

Unified system for HR, payroll, talent, and workforce management
Configurable dashboards with real-time analytics
Machine learning for personalized recommendations
Mobile access and employee self-service
Scales from small business to enterprise

Benefits

Some of the main benefits of Workday HCM include:

Increased efficiency - Automates administrative HR tasks
Data-driven decisions - Provides insights from integrated data
Enhanced employee experience - Delivers consumer-grade user interface
Lower costs - Reduces reliance on IT support and customizations
Agility and innovation - Frequent updates to stay on technology frontier

In summary, Workday offers a complete, cloud-based HCM platform suitable for organizations of all sizes looking to optimize their HR operations. Its unified architecture eliminates data silos while machine learning uncovers hidden insights to drive productivity and growth.

What is HCM framework?

Human capital management (HCM) refers to the comprehensive set of practices and processes that organizations use to effectively manage their workforce. This includes activities related to attracting, developing, engaging, and retaining employees.

Some key aspects of an HCM framework include:

Talent Acquisition: Activities focused on recruiting, hiring, and onboarding new employees. This can include job posting, screening applicants, conducting interviews, background checks, and orientation for new hires.
Talent Management: Ongoing development, training, and career planning for employees. This aims to nurture skills, leadership capabilities, and high performance. Common talent management activities include performance reviews, learning management, succession planning, and leadership development programs.
Total Rewards: Compensation, benefits, wellness programs, recognition programs, and other offerings that provide value to employees. The goal of total rewards is to motivate and retain top talent.
Workforce Management: Day-to-day HR administration, including payroll, time and attendance tracking, employee data management, and ensuring compliance with regulations. Workforce management streamlines routine HR tasks.
Employee Experience: The holistic experience employees have in their interactions with leadership, coworkers, policies, processes, technologies and physical work environment. Focus areas can include culture, engagement, inclusion, communication, collaboration tools, and workspace design.

The overarching goal of an HCM framework is to enable an organization to effectively structure its people-related programs, processes, systems and data analytics capabilities to drive business performance. With a strong HCM foundation, companies can better attract, develop, engage and retain the talent necessary to achieve strategic goals.

Evaluating HCM Solutions: A Comprehensive Approach

Choosing an HCM platform is a major decision that can have significant long-term impacts on an organization's HR operations and employee experience. Approaching the evaluation process comprehensively enables businesses to select solutions that align with both current and future needs.

Assessing Features for Talent and Workforce Management

When comparing HCM platforms, assessing their talent management capabilities is essential. Key aspects to analyze include:

Recruiting and onboarding: Evaluating features like AI-powered job matching, automated onboarding workflows, and new hire portals.
Learning and development: Reviewing learning management system (LMS) functionality, content libraries, and skills analytics.
Performance management: Examining goal setting, continuous feedback, performance reviews, and development planning.
Succession planning: Assessing tools for high-potential employee identification, career path mapping, and leadership readiness.

Strong workforce management functionality is also vital for optimizing staff planning and productivity. Core components to evaluate include:

Scheduling: Enabling shift-based planning, demand-based staffing, and time tracking.
Time and attendance: Supporting clock-in/out, overtime calculations, and leave management.
Analytics: Providing real-time workforce insights through interactive dashboards and reporting.

The Importance of Payroll and Benefits in HCM Selection

An HCM platform's payroll processing and benefits administration capabilities can significantly impact an organization's finance and HR teams. When evaluating solutions, key areas to analyze include:

Payroll accuracy: Ensuring precise salary calculations, tax payments, and regulatory compliance across global operations.
Benefits enrollment: Supporting open enrollment workflows, life event changes, and ACA reporting.
Retirement services: Integrating with major 401(k) providers and enabling personalized retirement planning.
Carrier connections: Providing pre-built connections to major medical/dental carriers, reducing administrative complexity.

Ensuring Compliance and Security with HCM Software

With changing regulations and rising data security threats, selecting an HCM platform that prioritizes compliance and protection is critical. Core aspects to examine include:

Audit trails: Logging all user actions, data edits, and access attempts for visibility.
Access controls: Managing permissions through role-based access and ensuring least privilege.
Data encryption: Securing data both in transit and at rest through industry-standard encryption.
Regulatory compliance: Confirming certified adherence to major regulations like HIPAA, GDPR, and country-specific laws.

Choosing the Right HCM Partner for HR Services

Beyond software capabilities, selecting the right HCM vendor is crucial for gaining a long-term partner for HR success. Key selection criteria include:

Managed services: Evaluating options for partial or full outsourcing of HR tasks to the vendor.
Ongoing support: Reviewing service level agreements and account management models.
Innovation roadmap: Confirming the vendor's commitment to continued HCM platform enhancement through new features and capabilities.
Ecosystem integrations: Assessing pre-built connectors to complementary HR systems for seamless interoperability.

Taking this comprehensive approach enables organizations to thoroughly evaluate HCM solutions against both current and future strategic priorities, paving the way for maximized HR impact across the business.

In-Depth Analysis of Top HCM Companies

Workday, Oracle, and SAP SuccessFactors are leaders in the HCM software industry, offering robust platforms to manage critical HR processes. As you evaluate options, here are key factors to consider:

Workday HCM: A Leader in HCM Technology

Workday HCM provides an integrated suite covering HR, payroll, talent, and workforce management. Key strengths include:

Continuous updates and innovations, with 3 major releases per year
Machine learning to deliver personalized experiences and insights
Flexible, configurable platform tailored to your needs
Intuitive mobile experience and embedded analytics

In the 2022 Gartner Magic Quadrant for Cloud HCM Suites, Workday placed in the Leaders quadrant based on its ability to execute and completeness of vision. Customers highlight Workday's user experience and depth of functionality.

Oracle HCM: Comprehensive Solutions for Complex Needs

Oracle offers a broad portfolio of HCM modules including core HR, workforce management, talent acquisition, learning, compensation, and more. Benefits include:

End-to-end HCM capabilities for global enterprises
Deep HR analytics and benchmarking data
Flexible deployment options: cloud or on-premises
Seamless integration across Oracle's full suite of solutions

Oracle provides extensive HCM solutions to meet complex needs across an organization. Its focus on data and analytics provides actionable insights.

The Evolution of HCM Software Companies

HCM software continues to evolve, with vendors incorporating innovations like AI, advanced analytics, and digital assistants to enhance employee and candidate experiences. Key trends include:

Conversational interfaces - Chatbots and virtual assistants make HR tasks more intuitive
Hyper-personalization - Leveraging data to provide tailored recommendations and nudges
Skills ontology - Mapping skills data to aid development and mobility
Integrated HR service delivery - Unified platforms to manage the full employee lifecycle

As technology progresses, buyers should ensure their HCM partner keeps pace through continuous platform improvements.

Managed Services: Day-to-Day HCM Support When You Need It

Running an HCM system requires specialized expertise. Managed services provide:

Ongoing platform optimization and maintenance
Technical upgrades and testing
Assistance managing data integrity, configurations, integrations
Training and change management
HR service desk and user support

These services allow you to focus on strategic initiatives while leveraging your HCM vendor's knowledge and resources. Evaluate each vendor's managed services capabilities as part of the selection process.

When choosing an HCM platform, align key requirements to vendor strengths in areas like functionality, technology strategy, service and support. This ensures the best fit for your organization now and as HR innovations continue unfolding.

Best HCM Platform Features for Enhancing Employee Experience

HCM platforms aim to create a positive employee experience throughout the employee life cycle. Key features that contribute to this goal include:

Automated Onboarding Process and Its Impact

An automated and streamlined onboarding process can greatly impact the employee experience from day one. Benefits include:

Reduced time-to-productivity - New hires can get up and running faster when all paperwork and processes are digital.
Better first impressions - A smooth onboarding reflects well on the organization.
Increased engagement - Employees are more engaged when they feel welcomed and set up for success.

Top HCM platforms like Workday and Oracle HCM include robust onboarding tools to achieve these objectives.

Advancements in Time and Attendance Tracking

Innovations in time and attendance tracking also contribute to the employee experience:

Mobile apps - Convenient clock-in/out from anywhere.
Geofencing - Automatic clock-in when arriving onsite.
Facial recognition - Touchless clock-in/out.

These conveniences demonstrate a focus on the employee and save them time and hassle.

The Intersection of HCM Products and Employee Well-being

HCM platforms include systems aimed at overall employee well-being:

Benefits administration - Managing healthcare, retirement plans, etc.
Compliance systems - Ensuring worker protections are met.
Wellness programs - Promoting healthy lifestyles.

This shows investment in the whole employee and their needs outside of work.

Integrating Workforce Management for Strategic HR

Workforce management aligns staff levels with demand. This benefits employees by:

Preventing understaffing and overwork during busy times.
Optimizing schedules based on employee availability and preferences.

The integration with HCM platforms allows for strategic HR based on business needs while keeping employees in mind.

In summary, HCM platforms aim to remove friction from processes like onboarding and time tracking while also demonstrating investment in employee wellbeing through integrated systems. The result is an overall positive employee journey.

HCM Buyer's Guide: How to Choose the Best Fit for Your Organization

Choosing an HCM platform is a complex decision with long-term implications for your organization's HR operations and employee experience. This buyer's guide provides key considerations to help evaluate your options and select the system that aligns with your strategic talent goals.

Understanding the HCM RFP Template – Request for Proposal

An HCM RFP template allows you to solicit comprehensive details from vendors to facilitate an apples-to-apples comparison. Key aspects to include:

Company background: History, leadership, financial health, customer base, partnerships
Functionality: Depth/breadth of modules, configurability, self-service capabilities
Technology: Hosting options, security, access, APIs and integration, roadmap
Service and support: Implementation approach, training, customer success, upgrades

Tailor the RFP with must-have features based on your needs like AI, analytics, mobile access, etc.

Human Capital Management Evaluation: Beyond the Checklist

While RFP checklists are important, the qualitative aspects also impact success:

Vendor partnership: Chemistry, responsiveness, understanding of your goals
Ease of use: Intuitive interface and workflows aligned to your processes
Configurability: Ability to tailor systems without extensive coding
Data access: Reporting, visualization, and analytics capabilities

Validate these softer aspects through demos, customer testimonials, trials, etc.

Evaluating Integration Capabilities for Seamless Operations

With multiple point solutions for HR needs, integration is key for a seamless ecosystem. Assess:

APIs: Options and ease of connecting other business systems
Partnerships: Pre-built integrations with your other solutions
Data flow: Bi-directional data sharing between modules
Authentication: Single sign-on and access management

The Decision Matrix: Comparing and Contrasting HCM Platforms

A decision matrix helps compare options based on weighted criteria:

System

Functionality

Ease of Use

Cost

Vendor Rating

Total Score

System 1

3.5

System 2

3.8

System 3

4.0

This allows an objective data-based evaluation to supplement other qualitative assessments during selection.

Conclusion: Synthesizing the HCM Platform Selection Journey

Recap of Key Considerations in Choosing an HCM Platform

When selecting an HCM platform, key considerations include:

Integration capabilities: Ensure the system integrates with your existing tech stack to enable data sharing and process connectivity.
Configurability: The platform should be customizable to your unique HR processes and workflows.
Analytics and reporting: Robust analytics and actionable insights are crucial for data-driven decision making.
User experience: An intuitive, modern interface improves employee adoption and productivity.
Security: Evaluate security protocols, access controls, and compliance standards.
Scalability: The system should flexibly scale as your organization evolves.
Total cost of ownership: Consider upfront costs, ongoing fees, implementation expenses, and long-term TCO.
Vendor support: The provider should offer exceptional training, customer service, and post-implementation assistance.

Next Steps in HCM Implementation and Partnership

After selecting an HCM platform, key next steps include:

Forming an implementation team with stakeholders across the organization.
Developing a detailed project plan and timeline for rollout.
Extensively testing and configuring the system to your needs.
Training employees and managers on using the new HCM tools.
Partnering closely with the vendor during and after launch for a smooth transition.
Continually optimizing and enhancing adoption of the platform.

Continual Evaluation and Adaptation of HCM Solutions

It's crucial to continually assess your HCM system to ensure it evolves with your changing business needs. Key activities include:

Regularly reviewing analytics for actionable insights.
Surveying managers and employees for feedback.
Testing new features and upgrades released by the vendor.
Re-evaluating needs as the organization grows and changes strategy.
Proactively working with the vendor as a trusted partner for innovation.

By continually optimizing and adapting your HCM platform, you can maximize its strategic impact over the long-term.