In the past, employers simply hired the best people available and maybe hired a temp worker when the workload was just too much. But with the advent of digitalization, increased interest in job flexibility and an unstable economy, that process is changing. It’s estimated that 40% of U.S. workforce is contingent, up from 30.6% in 2005. It is also projected that this percentage will increase by another 10% by 2030. How will your digital core manage your human capital as demand fluctuates? Here’s how improving technology improves your business.
Extend your digital core to cloud based human capital management apps
Managing today’s workforce means you need to control all aspects of human resources. It doesn’t matter whether it’s contingent contractors or permanent employees. Whether your focus is recruiting through training or payment through offboarding, you need to use a comprehensive system to manage these resources. Cloud-based human capital management solutions help you achieve this end. But they need to be tied into efficient expansion in your digital core.
But how should it change? Your digital core needs to remain stable with long-term reliability. At the same time, you must have flexibility to keep your business agile. You need a system that provides both facets to keep your business operating smoothly. But where will you find the tools you need to make this happen? A cloud based solution.
A cloud based solution helps your digital core by providing adaptability in a changing environment. This allows you to rapidly scale your business for non-linear growth: increased revenue growth without increasing headcount. Cloud based human capital management solutions enable virtual classroom training anytime anywhere and the onboarding of new employees. A cloud based solution makes it much easier to get verifiable results from your contingent and permanent labor.
When selecting a solution, you should look for a seamless user experience that provides easy access to project information for staffing purposes. You should look for a comprehensive range of talent management tools that provide everything you need. They should allow for effective recruitment, training and onboarding of contingent and permanent labor. Cloud based analytics provide you with insights into your current workforce needs and enable workforce planning. Workforce planning involves using forecasting tools to determine future demand for labor in your company. It provides the organization of integrated talent pools that give you the right people for the right job at the right time.
The more tightly integrated the human capital management solution is with your digital core, the better. The ideal talent management solution architecture includes a cross-platform, seamless user interface, simple, and easy-to-use, automated processes. A platform that allows for integration of accounting and engagement management processes. But what kind of improvement can you expect? Accenture‘s already efficient system was improved from 25% to 50% across transactions, programs, data distribution and reporting when they implemented a cloud based solution. Infosys saw an astounding 98% improvement in approval cycles, from two days to half an hour, creating a more responsive business. Though these are best-case scenarios, you can expect significant improvement in your business cycles.
A cloud based solution incorporating automated processes provides you with real-time processing rather than batch processing, improving turnaround time. You can see straight away where a simplified user interface provides immediate results. This allows you to quickly adapt to any changes needed for the project. Imagine improving your bid win rate by 10%. What if you could improve your overall efficiency by 10% per project? What would these improvements do to your company’s bottom line and financial outlook? By improving profitability, you’re giving your business the capability for strong growth into the future.
But beyond project work efficiency, a digital core delivers significant accounting savings. You can also view financial transactions as they happen, instead of waiting for the end of the reporting cycle. This gives you a lower cost for many accounting processes. How would you like a 20-40% decrease in audit costs or a 5-10% reduction in analysis and reporting expenses? What could you do with a 40-50% reduction in time needed to close annual books or a 20-40% reduction in financial closing costs?
The digital core can also deliver enablement of business strategy. This can include new business models, managing risks and ensuring regulatory compliance. The right tools can also allow you to run live, take a simpler approach to operations and speed up M & A synergy. At the same time, you can enjoy a smaller digital footprint. By creating a strong, flexible digital core for your business, you can ensure it remains adaptable for years to come.
Whether you want improved efficiency like Accenture or faster response times like Infosys, a digital core can deliver results. From companies that are positioning to enjoy 200% annual growth to those reducing sales outstanding days by 12%, it can help businesses achieve their goals. By creating a comprehensive digital core that allows resiliency and flexibility, you can meet your human capital needs now and in the future. From the first contact to the last payment, a cloud based human capital management solution can help your business manage its human capital with ease. For more information on how you can transform your business, learn more in our value paper.