What is human capital management (HCM) software? 

To ensure your organization can reach its human capital management (HCM) goals, you can use different types of software to support your strategy, including: 

  • HR software: a digital tool designed to make human resource (HR) management tasks like employee scheduling, performance tracking, and Learning & Development (L&D) easier 
  • Applicant tracking system (ATS): a type of software that automates the recruitment process by managing job postings, CVs, and candidate communications 
  • Payroll software: a system which makes calculating and dispensing employee compensation (e.g. wages) faster, more accurate, and compliant with tax regulations and labor laws 

Human capital management (HCM) consultants and services 

Alongside software, you can also turn to outsourcing and consulting services to help you reach your HCM goals.  

  • To tap into expert guidance in human resource (HR) management, you can use HCM companies that provide HR consultancy services 
  • Nail your recruitment-related HCM targets with the help of a recruitment service – they can help you sharpen talent acquisition strategies and connect with great candidates 
  • Delegate payroll to a managed payroll provider and rely on a fast, reliable payroll service to calculate wages, manage deductions, and ensure compliance with tax and labor regulations 

Common HCM challenges – and the solutions to help you overcome them! 

The first step to smart Human Capital Management (HCM) is knowing where you can improve. 

See if you recognize any of the following organizational challenges, and learn which HCM systems could help you resolve them. 

  • High levels of employee dissatisfaction

    When a company hasn’t yet got a strong human capital management (HCM) strategy in place, you’re more than likely to find issues like: 

    • Low employee morale or rising rates of absence 
    • Disengagement and lack of alignment with the wider mission 
    • Higher than average rates of staff turnover

    This is a complex issue that rarely has one single eureka-worthy answer.   

    However, to get started, you could look at investing in all-in-one HCM software to help you tackle the big issues up top. 

    HCM software, can help you optimize your recruiting/retention and foster better talent management efforts. 

  • Dwindling productivity

    If you notice levels of productivity dipping across your organization (or perhaps within certain departments), you could look at reviewing how you’re motivating your staff.  

    Without proper training, development opportunities, and clear performance expectations, employees may struggle to meet organizational goals.  

    HCM consulting services can help you with this kind of challenge.

    Bringing in external expertise not only provides you with a fresh perspective, but they may be able to advise you on what kind of HCM software you could benefit from. 

  • Clashing with compliance

    HCM isn’t just about helping your staff stay motivated and on track in their day-to-day work; it’s also about making sure all the background admin is taken care of to the highest standard.  

    From running payroll to managing employee classification, compliance is king.   

    Getting your payroll wrong, for example, has a huge impact on your employees and your business, as you can face heavy fines and damage to your reputation if you don’t get it right.  

    HCM products, like payroll software, can be a fantastic tool to invest in if you want to avoid compliance issues.   

    If you’d rather hand it off to an expert, outsourcing services ensure you never have to worry about payroll compliance. 

  • The right people in the wrong roles

    Inadequate workforce planning can mean you have highly trained, motivated members of staff in roles that just don’t work for them.  

    Whether there’s a mismatch between an employee’s skillset and the role they’re in, or an employee is in a role that doesn’t align with their career aspirations, you’ve got a problem.  

    An external HCM consultant or HCM company can help you with this.   

    Using approaches like skills mapping and talent management, HR specialists can help you tackle and overcome any mismatch issues you might have.

    Alternatively, for those with in-house HR expertise, good HR software makes tasks such as skills mapping and L&D far easier to effectively facilitate.  

  • No one is on the same page

    A lack of alignment with your HCM practices and business objectives can become a huge roadblock for an organization looking to make the most of its people.  

    Once you’ve got your HCM strategy nailed, it’s crucial you bring your people on board so they know what’s going on and how they fit into the big picture.   

    This can be especially tough if you’re a large or global organization – but it’s possible.  

    HCM companies with specialist expertise can help.   

    IRIS Global HR Consulting,  supports companies in 135 countries to have complete visibility across every aspect of their HR.   

    That means making sure every single employee understands their role in making your shared goals happen – which can lead to increased productivity and higher rates of motivation.  

    HR software can also support, making it far easier to communicate objectives, goals and the wider vision. 


Featured Guide

A guide to human capital management (HCM)  

Find the HCM systems you need to outline and implement your strategy with this free deep-dive guide, which includes: 

  • What is HCM? A review of the essentials 
  • HR and HCM keyword glossary 
  • Ways to improve your HCM strategy 
  • HCM solutions: software vs services 
  • Choosing your ideal HCM system 
  • HCM software recommendations 


Choosing the right HCM solution for your organization 

With all the options available, choosing the appropriate HCM solution for your organization can seem like an overwhelming task. 

Here’s a kick-off strategy to get you started: 

  • Develop a checklist outlining the goals you want to achieve through HCM 
  • Assess the potential impact of not meeting those goals  
  • For each goal, craft an action plan detailing project scope, resource needs, budget, and relevant stakeholders involved 

By fleshing out your HCM goals and strategy, you’ll have a clearer idea of what kind of solutions you could benefit from – whether that’s HCM vendors and software, HCM consultation, or something else. 

How can IRIS help you achieve your vision for HCM in your organization? 

Human capital management (HCM) encompasses a wide array of activities in your organization. 

From day-to-day people management to running a perfect payroll every month, there are a lot of moving parts in any great HCM strategy. That’s why IRIS has developed a range of HCM tools to help you achieve your targets. 

From our gold-standard HCM software, Apex HCM, to our comprehensive HCM service solution, to our three distinct payroll solutions, IRIS has got your back. 

Let’s get the most from your people and unlock the true potential of your business today. 


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