Human Capital Management software explained – What Is HCM software and why is it important?

Last checked and updated on 25 April 2022

Businesses have a lot of responsibilities, and one of the most important is taking care of their employees. This is where Human Capital Management (HCM) software comes in. HCM software helps businesses manage employee data, tracking payroll, scheduling shifts, and more.

The HCM software market is growing rapidly as more businesses realise the importance of managing their employee data. This type of software can help businesses save time and money, and improve employee satisfaction.

In this guide, we will discuss what HCM software is, why it is important, and the top reasons businesses should use it. We will also compare features and prices of some of the best products and providers on the market.

What is HCM software?

Human Capital Management software is a type of business software that helps businesses manage employee data. This can include tracking payroll, scheduling shifts, and more. This is important because it helps businesses keep track of their most important asset: their employees.

Is HCM the same as Human Resources Management (HRM)?
HCM and HRM are similar, but there are some important differences. Human Resources Management software is focused on managing employee data, while HCM software is focused on managing the entire employee lifecycle. This includes tracking payroll, benefits, and more.

Key benefits of using HCM software

There are many reasons businesses should use this type of software, but here are the top three:

To save time: HCM software can automate many of the tasks that businesses would otherwise have to do manually, such as tracking employee vacation days and calculating payroll. This can free up a lot of time for businesses, which they can then use to focus on other areas of their business.

To save money: This software can also help businesses save money. For example, by automating payroll, businesses can avoid the costly mistakes that can happen when calculating payroll manually.

To improve employee satisfaction: HCM software can make it easier for businesses to manage their employees, which can lead to happier and more productive employees.

What features and qualities to look for when choosing HCM software?

When choosing an HCM provider, businesses should look for products that have the following features and qualities:

AffordableThe price of can range from a few hundred dollars to a few thousand dollars, so businesses should choose a product that fits their budget.
Easy to useSoftware can be complex, so businesses should choose a product that is easy to use and understand.
FlexibleShould be flexible so that it can be customized to fit the unique needs of each business.
ScalableYour chosen software should be scalable so that it can grow with the business.
ComprehensiveSshould be comprehensive so that it can cover all the bases when it comes to managing employee data.
What makes good HCM software?

How much should HCM software cost?

The price of HCM software can range from a few hundred pounds to a few thousand pounds. The price will depend on the features and quality of the product.

What factors will impact the cost?

The main factors that will impact the cost of the HCM product are the features and quality of the product, and the number of employees that you want to manage. The more features and higher quality the product, the more it will cost. Usually, adding more members of staff will also push the price up.

What is included in the price?

The price of HCM software will include the software itself, as well as any support or maintenance that is required.

Top HCM software compared

There are many HCM products on the market, so businesses should take their time to find the right product for their needs.

Here are some of the top HCM providers on the market:

  1. Zenefits
  2. Namely
  3. Gusto
  4. Ximble
  5. Workday
  6. Paylocity
  7. BambooHR
  8. Zoho People
  9. Kronos Workforce Ready
  10. UltiPro
  11. SAP SuccessFactors

Zenefits

Zenefits is a comprehensive HCM software that includes features such as payroll, benefits, compliance, and more. Prices start at $45 per month per employee.

Zenefits is easy to use and understand, and also flexible and scalable. However, some users have complained about the customer service.

Namely

Namely is an HCM software that is popular because of its flexibility and ease of use.

Namely is a great HCM tool for businesses that have a lot of employee turnover, as it is very easy to use and manage new employees. Namely is less flexible than some other HCM software products and it can be difficult to customise the system to fit specific needs.

Price wise, Namely is relatively affordable, with plans starting at $99 per month per employee.

Gusto

Gusto is a comprehensive HCM software that includes features such as payroll, benefits, and more. Prices start at $39 per month per employee.

Gusto is easy to use and has a intuitive interface. Gusto integrates with a variety of third-party applications, and offers excellent customer support.

Ximble

Ximble is an affordable, easy-to-use, and flexible HCM platform. It is also scalable and comprehensive. Ximble is affordable, is easy-to-use and flexible.

However, Ximble does not have as many features as some of the other HCM software products on the market.

Workday

Workday is a comprehensive, cloud-based HCM product. It offers a complete suite of HR tools and is suitable for businesses of all sizes.

Some of the key strengths of Workday include its user-friendly interface, comprehensive functionality, and wide range of integrations.

However, Workday does have some weaknesses. One of the main criticisms of Workday is its high price point. Additionally, some users find the interface to be too complex and difficult to navigate. Finally, because Workday is a cloud-based software, it can be subject to internet outages or other technical problems.

Despite its weaknesses, Workday is still one of the most popular HCM products on the market. If you’re looking for a comprehensive HR solution, Workday is definitely worth considering.

Paylocity

Paylocity is an HCM provider that is popular because of its flexibility and ease of use.

It also has a low price point, starting at $99 per month per employee. This makes it an attractive option for businesses of all sizes.

However, there are some weaknesses to Paylocity. One is that it does not have all of the features that some of the other HCM products have. Additionally, its customer service has been known to be less than responsive at times. Finally, some users have found the interface to be confusing and difficult to use.

Overall, Paylocity is a good HCM option for businesses that are looking for an affordable and easy-to-use solution. However, it is not the best choice if you need all of the bells and whistles that some of the other products offer.

BambooHR

BambooHR is an affordable, easy-to-use, and flexible HCM product. It is also scalable and comprehensive, making it a good choice for businesses of all sizes.

Some of the key benefits of BambooHR include its ability to streamline HR processes, its user-friendly interface, and its robust features. BambooHR is a bit more expensive than some other HCM software products on the market, with plans starting at $99.95 per month per employee.

Zoho People

Zoho People is another affordable and easy-to-use HCM software product. It is also flexible and comprehensive, making it a good choice for businesses of all sizes.

Zoho People is a comprehensive and affordable HCM software product. It is easy to use and flexible, making it a good choice for businesses of all sizes. However, Zoho People may not be as comprehensive as some of the other HCM software products on the market. Additionally, Zoho People’s customer service can be difficult to reach.

Kronos Workforce Ready

Kronos Workforce Ready is a more expensive HCM product, but it is also very comprehensive and scalable. It is a good choice for businesses that need a lot of features and are willing to pay more for them.

Kronos Workforce Ready is a comprehensive HCM platform that offers a lot of features. It is a good choice for businesses that need a lot of features and are willing to pay more for them. However, it is also more expensive than other HCM software products.

Kronos Workforce Ready is scalable, so it can grow with your business. It is also easy to use and has a good customer support team.

UltiPro

UltiPro is a very comprehensive and scalable HCM software product. It is also easy to use and affordable, making it a good choice for businesses of all sizes.

UltiPro does not have a mobile app and some features are only available in the US.

SAP SuccessFactors

SAP SuccessFactors is a comprehensive, scalable, and expensive HCM software product. Some of the strengths of SAP SuccessFactors include its comprehensive features, scalability, and ease of use. Additionally, it has a good customer support team.

However, some of the weaknesses of SAP SuccessFactors include its high price tag and lack of mobile app. Additionally, some features are only available in the US.

Overall, SAP SuccessFactors is a good choice for businesses that need a lot of features and are willing to pay more for them. However, it is important to be aware of its weaknesses before making a decision.

Businesses should take their time to compare the features and prices of different HCM software products before making a decision.

Getting the most value from HCM software

Once you’ve decided on the right software for your business, there are a few things to keep in mind when using it.

First, make sure to properly train your employees on how to use the software.

Second, be sure to keep your data up-to-date and accurate.

Finally, make sure to regularly review the reports and analytics that the software provides to ensure that you’re getting the most out of it.

By following these tips, you can be sure that you’re using your HCM software to its full potential and reaping all of the benefits that it has to offer.

The bottom line

HCM software is a type of business software that helps businesses manage employee data. It is important because it can save businesses time and money, and improve employee satisfaction.

When choosing HCM software, businesses should look for products that are affordable, easy to use, flexible, scalable, and comprehensive.

There are many providers products on the market, so businesses should take their time to find the right product for their needs.

Frequently asked questions

What is HCM software?

HCM software is a type of business software that helps businesses manage employee data. It can save businesses time and money, and improve employee satisfaction.

Why is HCM software important?

HCM software is important because it can save businesses time and money, and improve employee satisfaction.

What are the best HCM software products?

There are many HCM software products on the market, so businesses should take their time to find the right product for their needs. Some of the best HCM software products include UltiPro, SAP SuccessFactors, and Kronos Workforce Ready.

How can businesses get the most value from HCM software?

Businesses should make sure to properly train their employees on how to use the software, keep their data up-to-date and accurate, and regularly review the reports and analytics that the software provides. By following these tips, businesses can be sure that they’re using their HCM software to its full potential.

ⓘ Compare prices?

Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.