For years, the importance of Human Resources has dwindled in comparison to more revenue-generating departments, but many companies have since shifted their previous views. The truth is that what happens in HR trickles down to affect almost every part of an organization.
HR strategic planning is critical to a business outlook. A company that provides the right team of individuals with the right resources can enhance strategic planning for the future and impact the business bottom line. For this reason alone, companies have started to justify budgeting for new HR technologies, including Human Capital Management (HCM).
In fact, the HCM market continues to grow as more and more companies see the benefits of how such a management system can positively alter their organization. According to the International Data Corporation (IDC), HCM markets made an average of $6.1 billion dollars in 2006. Today, those markets have increased to around $8 billion dollars, with a projected growth of around $11 billion in 2016.
Why are companies now investing in HR technologies? The answer is simple: when HR is not supported, the health of an entire company suffers. By following the basic premise that a better management system leads to enhanced performance, it is no wonder why companies are starting to understand the importance of HCM in company-wide goals.
HCM and similar technologies give HR departments a predictive look into the future, which in turn give companies the foresight to calculate how many specialized employees that the organization will need in upcoming years. The 10 most essential jobs in 2003, after all, are completely different from those coveted in the market now. With shifting technologies and company priorities, new career fields and strategies are being created all the time and the most successful businesses are those that can cypher out these trends and adapt.
Overall, HCM can act as a tool to determine these needed adaptations, which offers an advantage to business performance and revenue. HCM leads to a more efficient, competitive, and cost-effective HR department and a healthier organization as a whole.
Want to discover what HCM can offer your business? Review the report- Ventana Research Value Index 2012: Total Compensation Management.