In the last ten years, human capital management (HCM) systems have exploded in depth and scope. What used to be a “back-office” system for HR managers has become an entire suite of employee-facing systems.

Despite this success, new problems remain unsolved. To address them, next-gen HCM must have the following capabilities:

  • Organizational agility and team features
    HCM systems need to accommodate companies that are constantly reorganizing, acquiring, restructuring and redesigning jobs.

  • Employee experience tools and features
    HCM systems should be employee systems first and HR systems second. They must also be systems of productivity, not just systems of record.

  • AI and skills underpinnings
    HCM has to be AI-enabled and structured around employee skills so employers can recruit and develop talent, plan successors and adjust salaries more effectively.

  • Intelligent job architecture
    HCM systems must be capable of managing job architecture – job levels, titles, standard privileges, etc. – even if it changes daily.

  • Multi-cloud, scalable, open APIs and ecosystem partners
    Hosting an HCM system in any country or any cloud platform is a necessity. Next-gen solutions should also have functions that can easily be moved, APIs that are simple to understand and public interfaces for partners.
ADP Editorial Team

ADP Editorial Team The ADP editorial team is comprised of human resource professionals with extensive experience solving complex HR challenges for businesses of all sizes.