Top 3 Ways Executives Can Collaboratively Drive HCM Strategy
Driving value with human capital management (HCM) solutions can require collaboration between CHROs and other members of the executive team, including CIOs, CFOs and other C-Suite members. An HCM strategy is not just an area of focus for HR leaders at the largest organizations. Increasingly, midsized organizations are realizing that comprehensive human management tools can be a powerful way to unlock improved engagement, talent retention, employee learning and other key areas of business success.
According to the ADP Research Institute® 2015 Midsized Business Owners Study, 43 percent of midsized business owners surveyed believe that a primary goal of human capital management is to drive employee engagement, However, just 18 percent of the same survey respondents were "completely confident" they had the necessary tools to manage their workforce.
For HR leaders who are hoping to improve their HCM planning in the year to come, working collaboratively can be a necessity.
1. Define Key Challenges
Creating a human capital management strategy should start with identifying challenges. While priorities can vary according to industry, organizational goals and other factors, SHRM research indicates that the most common challenges include
- Maintaining employee engagement
- Leadership development
- Competitive total compensation packages
- Retaining top performers
By working collaboratively to identify key areas of risk and need, HR leaders can shape their HCM strategy to meet the organization's goals, from the CIO's desire to mitigate security risks to the CFO's concerns about wage growth.
2. Clarify Executive Roles
Converting members of the executive suite into promoters of your HCM initiative should be key to process improvements. As Workforce Management Strategies writes, "employees and middle managers take their cues regarding what is and isn't important based on what they observe in senior leaders." With any organization-wide initiative, it can be crucial to win the full support of all members of the executive team in order to realize successful results.
CHROs should look to win the support of CEOs for strategic support and buy-in from other members of the executive suite. By providing clear details on project costs and labor needs, CFOs and COOs can be vital for providing the financial and human resources necessary for HCM project execution. CTOs, CISOs, and other high-level risk and technology officials can certify the technical and compliance aspects of effective HCM implementation, while the CMO can be an invaluable resource for internal and external marketing initiatives.
In addition to enlisting C-level leaders to champion your HCM initiatives, it can be helpful to assign metrics and key performance indicators (KPIs) in accordance with department goals. By assigning each executive KPIs in accordance with their aspect of your HCM strategy, you can drive performance and make smooth, wholesale changes.
3. Don't Forget Your Customers
Ultimately, the focus of C-Level efforts to improve your human capital management should look beyond your own walls and toward your customers. An HCM solution with the potential for a broad scope can improve client satisfaction. For example, according to an ADP Business Case Study, after introducing a client evaluation scorecard to "help better utilize their HCM system and increase ROI," Waste Pro was able to implement "improvements in their user experience," including the introduction of new transaction-tracking work flows.
Organizations who are hoping to shape a HCM strategy should consider integrating customer feedback as a key focal point in their efforts. By considering the customer's perspective and HCM as a tool for maximizing client value, organizations can expand their perspective.
HCM has the potential to transform HR at midsized organizations and solve key challenges in talent engagement and workforce management. By collaborating with members of the C-Suite, CHROs can expand their potential for process transformation and organizational acceptance.
