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Avoid These Five Mistakes in Your Human Capital Management (HCM) Strategy

  • HCM
  • Article
  • 6 min. Read
  • Last Updated: 03/29/2016

Human Capital Management (HCM) strategy mistakes
Companies often make similar mistakes when rolling out their HCM strategy. Here are some common HCM mistakes and ideas to help your business avoid them.

Table of Contents

Companies are increasingly investing in a human capital management (HCM) strategy in order to empower their teams while providing a productive working environment. However, rolling out an HCM strategy can be complex, possibly resulting in mistakes that could impact your progress and end-results. Here are five common mistakes companies make in their HCM strategy and what steps you can take to avoid them.

1. Failing to put the "human" in human capital management

HCM can help your company recruit and retain employees, improve morale, boost productivity, cut costs, and help management make better strategic decisions. Technology plays an important role in collecting data and facilitating smoother transactions. Yet fundamentally, successful companies remember that people are at the center of their HCM strategy. Focusing on how your HCM solution can help you get the most from your team while creating the best work environment may yield the strongest long-term ROI (return on investment).

2. Not investing in HCM and human resource technologies

We live in a big data world, where companies can measure nearly any aspect of their operations. In fact, the bigger challenge is often combing through mountains of data to find the most strategically important information. Human resource technologies can help companies centralize and manage their employee data. Without the right HR technology infrastructure, companies will likely struggle to capture the full rewards of an HCM strategy.

3. Not embracing mobility and flexible scheduling

The workforce is shifting and includes more freelancers, remote workers, and flexible scheduling than ever before. As a result, employers may find themselves struggling to meet the needs of a mobile workforce. Embracing trends like mobility and flexible work schedules can be essential to developing a strategy that's relevant to the modern workplace.

4. Choosing "Frankenstein" systems over integrated technology

Though some companies that have come to understand the importance of HR technology, many are still working with legacy systems. Outdated systems can cause numerous problems. For example, they may not communicate well between different functional silos, or they could be difficult to support. Many providers are creating so-called HR software suites that are actually comprised of disparate software from partner companies. These types of solutions are not likely to eliminate a company's challenges with communications and logistics. However, finding and investing in truly integrated HCM technology may provide a seamless user experience and offer some of the insights your business needs to thrive.

Without the right HR technology infrastructure, companies will likely struggle to capture the full rewards of an HCM strategy.

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5. Not making the most of data

One of the advantages of an HCM strategy is the systematic ability to measure and quantify progress throughout the organization, helping support the company's vision for the business. Be sure to create guidelines for your company's HCM strategy that specify how data will be collected, managed, and used in compliance with applicable laws.

Successfully implementing an HCM strategy requires careful planning and the right technology. However, with a bit of advance planning, it's possible to avoid these common mistakes and create the framework for your workforce to thrive.


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* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.

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