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Choosing the Best HCM System for Your Business

29 Mar


As businesses grow, the task of managing their workforce can become increasingly complex. This is where human capital management (HCM) systems come in, providing a centralized platform to manage employee data, payroll, benefits, performance, and more. However, with so many HCM systems on the market, how do you choose the right one for your organization?

Determine your needs

The first step in selecting an HCM system is to identify your organization’s specific needs. Do you need a system that can handle payroll processing and benefits administration? Do you require more advanced features, such as performance management and succession planning? Once you have a clear understanding of your requirements, you can begin to evaluate HCM systems that meet your needs.

According to a recent survey by PwC, 73% of organizations are currently using HCM technology, with another 16% planning to implement it in the next year. Additionally, the survey found that the most common HCM functions being used are HR administration (91%), time and attendance (66%), and payroll (64%). This data highlights the importance of selecting an HCM system that can effectively manage these key functions.

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Consider integration

Another important factor to consider when selecting an HCM system is integration. Does the system integrate with your existing HR and payroll systems? Can it communicate with other systems used by your organization, such as accounting software? HCM technology that can seamlessly integrate with your existing systems can help streamline workflows and reduce errors.

According to a report by SAP, 84% of organizations cite integration as a key factor in their HCM system selection. In fact, organizations with integrated HCM platforms are more likely to report improvements in HR processes, employee engagement, and business outcomes.

Evaluate user experience

An HCM system is only effective if employees are willing and able to use it. When selecting an HCM system, it’s important to evaluate the user experience (UX). Is the system easy to use and navigate? Does it provide employees with the information they need in a timely and efficient manner? An HCM system that is intuitive and user-friendly can help increase employee adoption and engagement.

Research conducted by Deloitte found that organizations with high levels of employee engagement are more likely to achieve their business objectives. An HCM system that supports engagement through a positive user experience can help organizations achieve these outcomes.

Assess security and compliance

Finally, when selecting an HCM system, it’s important to assess security and compliance. Does the system comply with applicable regulations, such as GDPR or HIPAA? Does it offer robust security features, such as encryption and multi-factor authentication? An HCM system that prioritizes security and compliance can help protect sensitive employee data and mitigate risk.

According to a survey by ADP, 90% of organizations consider security and compliance to be a critical factor when selecting an HCM system. In fact, organizations that prioritize security are more likely to report improvements in HR processes, data accuracy, and employee satisfaction.


Selecting the right HCM system is a critical decision for any organization. By considering factors such as your organization’s specific needs, integration, user experience, and security and compliance, you can choose an HCM system that effectively manages your workforce and supports your business objectives. With the right HCM platform in place, you can streamline HR processes, increase employee engagement, and achieve better business outcomes.

Fortunately for you, if you partner with VensureHR for help with all of your HR needs, you get full access to Vfficient, our HCM platform. Schedule a demo today with a VensureHR representative.

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PwC, “Global HR Technology Survey 2021”
SAP, “Integrated HCM Strategies Drive Business Outcomes”
Deloitte, “The Employee Experience: Culture, Engagement, and Beyond”
ADP, “HCM Prior”

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