HCM—A Brief History
The term “human capital” was first used in the 1950s and 60s as computing began to accelerate the automation that had begun in the industrial age. Economists and business people began to see employees not as replaceable units completing routine tasks, but as knowledge workers with specific skills and talents that could fuel business growth.
Not surprisingly, the term returned to prominence with the rise of the internet in the late 1990s. New technologies were rapidly automating a whole new set of business processes. While the internet changed the how employers and managers worked and collaborated. All of this change meant that workforce leaders had to transform how they went about attracting, retaining, and engaging talent in an evolving set of job roles.
This decade could be called The Golden Age of HCM. New digital technologies are enabling HR leaders to provide a more engaging and personalized employee experience at scale. At the same time, emerging technologies, such as data automation, predictive analytics, and artificial intelligence (AI), have added new innovations for understanding, managing, incenting, and engaging the workforce. And HR leaders have a whole new set of tools that can maximize the value of their workforce, from intelligent, social-driven recruiting and personalized retention practices to highly optimized compensation.
HCM in the Cloud
The cloud and software-as-a-service (SaaS) delivery models are quickly becoming the new normal for HCM technologies. The cloud approach accelerates deployment, turns variable capital expenses into fixed and transparent operating expenses, lowers IT costs, and drives agility by speeding and simplify upgrade paths.
Although there are many SaaS HCM providers, they are not all alike. In evaluating vendors and solutions, businesses need to ask key questions as they consider not just the HCM capabilities they want today, but the ones they will need in the future.
- Will the provider be around for the long term?
- Does the provider invest in innovation?
- Will the provider be able to secure highly sensitive employee data?
- Can the provider keep data in country-specific locations for regulatory reasons?
- Can you decide on your own upgrade path and timing?
- Will you be able to integrate HR processes with ERP, CRM, and other business processes, quickly and easily?
The Future of HCM
Clearly, technology is disrupting the world of work as we know it. New technologies are changing business strategies, eliminating job roles, and creating new work opportunities. But while traditional hierarchical structures are changing, the workforce is transforming as well—into flatter, more agile networks of teams, becoming more mobile, global, and diverse. HCM too, is evolving rapidly. Expect to see accelerating adoption of already-familiar technologies, such as SaaS and mobile, as well as leading-edge technologies, from machine learning to AI.
- Mobile increases engagement and productivity by empowering HR, workers, and managers with consumer-grade, self-service mobile apps.
- Social improves productivity for everyone when being able to collaborate with peers and mentors in the organization.
- Chatbots serve constituents faster and more efficiently with answers.
- AI augments what is not humanly possible, such as quickly mining thousands of resumes and data points to find best-fit candidates.
Transform Your HCM with Oracle Modern Best Practice
For global, comprehensive insights into HCM strategy, emerging technologies, and best practices, check out Oracle Modern Best Practice for HR and Talent Management. This covers:
- Recruit to onboard
- Benefits to payroll
- Payroll to payment
- Time collection to payroll
- Goal setting to performance
- Career planning to development
- Talent review to succession
- Absence planning to continuity
- Employee insight to work-life alignment
- Employee separation to workforce analysis