Being in charge of human capital, there is a lot that falls under the HCM professional's line of responsibility. Depending on the type of organisation and field of industry your company operates in, you're likely to have challenges specific to your business concerning human capital.
For HR professionals managing the workforce of a multinational corporation, their priorities may be a little more expansive than one working at a local firm. With that said, here's the four most common pain points for HR professionals managing human capital in a multinational corporation.
1. Keeping Track of Legal Regulations
Depending on how many locations your organisation operates in, keeping track of each and every legal change in labour legislation can be enough to drive someone insane. For HCM professionals who manage their payroll in-house, this process is especially painstaking. Burdened with the responsibility of having the latest most up-to-date understanding of labour laws and requirements across various locations in order to accurately perform their role of strategic human capital management.
2. Dealing with Data Discrepancy
Incorrect data is a common challenge for HR professionals of all fields. Even the smallest human error can snowball into the biggest problem, adding frustration to the process of forms and documentation running across various systems for recording and processing. The task of spotting a problem and identifying the source of the error can be especially draining one on top of being tremendously time consuming. This is even more challenging for HCM professionals who are comparing data across different locations where there are different formats and requirements, further complicating the payroll process.
3. Lack of Integration
Many companies prefer using proprietary payroll processing systems dedicated to the location they’re processing for as this ensures a higher level of accuracy. As opposed to a system that aims to manage everything at once, using locally dedicated payroll processing systems that already has a positive track record will mean you won’t have to worry about covering for the different legal nuances and requirements specific to each location.
The problem however, is when you don't have the right connections and integrations, it decentralises information, making the transfer and comparison of data a lot more tedious. The solution here for HCM professionals is in having a centralised system, capable of integrating with the different systems for easy comparison and analysis. Essentially this will be your single source of truth, seamlessly integrated with various payroll solutions without relying on a cookie cutter model jeopardising the accuracy of your company's payroll.
4. The Need for Analysis
HCM solutions is a great single source of truth. With so much data stored into the system, it’s a missed opportunity not to properly analyse it. Unfortunately, businesses miss out on this opportunity by using out-dated solutions that lack the capability, or in other cases, simply overlooking the possibility of what they can do due to the work that is involved in first cleaning the database.
In fact, there's a lot that can be done with people metrics, from engagement efforts, to employee performance, company turnover, and much other surrounding strategic workforce management. By engaging with the right HCM solution, you open up a plethora of opportunities, giving you the insights you need as an HR professional to come up with a holistic understanding of the strengths and weaknesses of the company’s workforce, allowing you to form better strategies.
Why CHRO Leaders & HR Professional Need A Robust HCM
The key role of any CHRO or leading HR professional is in providing company specific workforce strategy. A good HCM solution can relieve a lot of the burden that comes onto the HR departments but more importantly provide insights into the organisation, allowing HR leaders to properly address company specific challenges.
Without a robust HCM, CHROs would be left to their own experience and devices, leaving them in the undesirable position of constantly responding instead of leading. Whereas, by using a reliable HCM that allows you to see trends within your organisation and provide data for your strategy, you're in a much better position of leading the business and its workforce.
Instead of being tied down by tradition solutions, engaging with more robust and comprehensive HCM solutions in the market essentially arms CHROs with a key understanding of the business, opening up the role of HR and human capital management.
Finding the Right HCM Solution: What You Need to Prepare
For those looking for a vendor or considering on using a more reliable HCM solution, it's important to know that many factors will come into play. As a rule of thumb, it is advised that you prepare ahead of time when looking for a solution for your company. Here are some of the factors that will ensure you find the right HCM solution for your HR needs.
- Clearance and support from executive level towards the project as well as assigned decision makers
- Defined set of objectives followed by a plan of execution
- A good understanding of the business and its requirements both short term and long
- Alignment between stakeholders of all levels
For a more comprehensive guide on finding the right HCM solution, make sure to read our article, Simple Guide to Find & Compare HCM Solutions for APAC.
Escape the mentality of and HR respondent
For many years, HR has been understood as an administrative function. However, nowadays with the latest technology and HR solutions in the market, HR professionals are able to do a lot more than just respond.
Make use of company specific insights
There is a lot that can be done through HR analytics available in the latest HCM solutions. For leaders of multinational corporations, this is an especially powerful tool as it allows you to make cross-region strategic decisions.
Proactively consult with different vendors for a thorough understanding
The last thing you want is to sign with a solution that fails to address your company's needs. By proactively communicating with different vendors in the procurement process, you can get a better idea of what each solution offers and whether they are a fit for your needs.
Get in touch with one of our representatives today and learn how we can help you streamline your HR.
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), recruitment and more! Contact us for more information on how we can help leverage your HR function.