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5 Secrets Your HCM Vendor Doesn’t Want You to Know

In the intricate world of Human Capital Management software (HCM), providers are often quick to highlight their product’s top features and capabilities. Yet, like any other technology, no HCM is perfect. Some gaps aren’t mentioned during the sales pitch, particularly when it comes to data analytics. Let’s uncover five pivotal areas where many HCM solutions might fall short, especially when it comes to extracting deep, strategic insights from HR data.

1. A Blind Spot in Visibility

The most effective HR strategies are informed by data. However, what happens when that data is fragmented or missing? Many HCM vendors offer tools to pull reports, but they might not provide full visibility into all the necessary data that normally sit in other systems. This blind spot can mean missing out on key insights, leading to decisions made without the full picture.


2. Missing Critical Data Points

While you’d expect an HCM to encompass all HR-centric data, many systems don’t integrate crucial information such as financials or targets. This omission can hinder the ability to tie HR metrics to financial outcomes, thereby reducing the scope of strategic HR analysis.


3. The Descriptive vs. Diagnostic Analytics Gap

Most HCM platforms specialize in descriptive analytics, offering insights into ‘what’ has occurred. However, the real value often lies in diagnostic analytics, diving into the ‘why’. This deeper level of analysis is crucial for identifying core issues and formulating proactive solutions.


4. The Challenge of Prescriptive Analytics

Beyond understanding the ‘why’, prescriptive analytics provides actionable recommendations for future scenarios. Regrettably, many HCM solutions aren’t equipped for this depth of insight, leaving HR teams in a more reactive stance.

5. Operational Reporting ≠ Strategic Insights

It’s essential to differentiate between these two facets. While HCM solutions generally excel in operational reporting, which offers routine snapshots of current happenings, they often lack in providing strategic insights. These insights, derived from deep analytical reports, drive proactive decision-making and strategic planning, propelling organizations forward.

Final tips:

Investing in an HCM is undeniably beneficial, but it should be viewed as the foundation rather than the entirety of your HR data strategy. As businesses increasingly lean on data-driven strategies, extracting rich, actionable insights becomes paramount. If you’re seeking true value from your HR data, think beyond the HCM. Consider building a layer of advanced analytics on top of your existing system. It’s about enhancing, not replacing. This additional layer can bridge the gap between operational efficiency and strategic innovation. As you evaluate HCM vendors or ponder maximizing your current system’s utility, probe deeper. Question the capability of the system to transition from mere operational reporting to delivering strategic insights. After all, in the modern business landscape, it’s these deep insights that drive growth, innovation, and competitive advantage.

Investing in an HCM is just the start; add advanced analytics to turn operational data into strategic insights for true competitive advantage. Learn more about the HCM.

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