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.