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Integrative HR Solutions: Make The Most Of Your Human Capital, Part 2

Posted by Rita Strauss

Jul 9, 2014

Human resources talent managementBusinesses today have begun to recognize that in order to make the most out of their human capital investments, they need to focus on improving employee engagement. Cloud-based HR solutions play a major role in employee satisfaction, leading to higher productivity and better employee retention rates.

Our four-part series is designed to help you maximize your human capital and highlight how your business benefits from cloud migration. In Part 1, we discussed the first two benefits: user experience and process efficiency. Today, we continue on to number three on the list:

3. Talent Management

One of the most critical responsibilities of the human resources team is talent management. As businesses grow and thrive, it becomes more and more important to balance employee acquisition, training, assessment and retention all while maintaining a functional budget. Cloud ERP offers marked benefits for talent management, including:


In its Mobile Recruiting Playbook, LinkedIn indicates that more than 50% of its new job applicants entered the site through their mobile devices, and that some of the most qualified candidates are connected via mobile applications.

Any change in the way applicants search for jobs necessitates a change in the way businesses recruit their talent. Cloud ERP offers superior mobile capabilities, which help prospective employers target highly qualified candidates to fill their positions. Recruitment is quicker and more effective, resulting in a higher-quality workforce with less wait.

Pre-hire assessments have undergone a rapid evolution. The traditional cookie-cutter tests, simulations, reports and models that were used to qualify job applicants for decades are quickly being seen as obsolete. They're being completely overhauled to include personality, behavioral and cognitive assessments, and a new focus has been placed on specific skills, passions and penchants – not only in occupational, but also in academic and personal lives. HR solutions, when integrated with your cloud ERP system, make it easy for you to identify skill gaps within your workforce and develop profiles detailing the ideal candidates you want to fill your open positions.


Most HR software currently in use today lacks efficiency regarding workforce training,. Training modules are difficult to understand, and don't cater to a diverse personnel – your employee pool is filled with visual, auditory and kinesthetic learners whose potential is only maximized through the right training protocols.

Cloud ERP improves the human resources training process by standardizing data, offering a range of assessments, identifying various strengths, improving employee engagement and providing an easily accessible platform. Managers and key decision-makers have visibility into the training protocols to see where talent is lacking, which skills need to be developed and whether employees are being placed in the right positions.


Talent management today is about quality, not quantity. This rings especially true in the volatile SMB market, where every employee must wear many hats and bring real value to the enterprise. It simply doesn't make sense for businesses to pay the salaries of a dozen mediocre employees instead of half a dozen high-performing, high-value employees. Small and mid-sized businesses need to find a unified method of assessing employee performance, identifying areas for improvement and rewarding the efforts of high-quality personnel.

It's become increasingly important to understand and recognize the characteristics of high performers within your enterprise. Assessment science works well, as it's highly validated. But, many on-premise HR solutions are notoriously inflexible, which poses a problem for small and mid-sized businesses. The one-size-fits-all approach to employee assessment means the system is not designed for your needs or the needs of your employees.

Remember: Small business software exists to help your enterprise run better, so your HR solutions should conform to your business, not the other way around. Cloud ERP is an integrative and flexible platform that enables configuration of your HR software, down to the minutest detail. You determine the structure and elements of your personnel assessments according to the goals of your company and your employees' capabilities.


Companies that invest in talent analytics have been rewarded with rapid growth and incredible ROI, but not all employee analysis systems are effective. Collecting, analyzing and reporting on labor data is complicated – it involves overwhelming amounts of data arranged into often incomprehensible reports that are useless to the enterprise.

Talent analytics have found a strong supporter in Big Data, enabling both end-to-end reporting and a focal shift from SaaS to DaaS (data as a service). This emphasis on data and analytics has driven many business intelligence software companies to work hard at building connective middleware that integrates with other software systems.

ERP vendors reached the finish line first, creating turnkey technologies that effectively help you connect your HR solutions to all of your other small business software.

With cloud-based HR solutions, all of your business insights and labor data are centralized in a single space (your ERP system). Each of your users has the ability to access relevant information, compile specific data sets and generate highly detailed reports that are more useful and easier to understand than their traditional on-premise counterparts.

Succession Planning

As a business owner, you should always have one eye on the future, which includes burgeoning trends, innovative technologies and evolving workforces. The current entry-level employees in your enterprise quickly gain the experience and knowledge needed to become valuable leaders. It's important to assess your employees' leadership readiness and identify the traits and skills you want to see in your executives.

Early talent identification allows you to begin coaching auspicious individuals straightaway. By cultivating these employees, you prepare them for integral leadership roles and maximize their value when they get there. As an added benefit, the promise of a promotion – even one that's not set in stone – makes your employees more loyal to your company, more dedicated to your cause and more motivated to perform well in their positions.

Most small and mid-sized businesses are well aware of the need for viable HR solutions. Unfortunately, many are also still using outdated, on-premise delivery methods. As the importance of employee engagement continues to be revealed, the superiority of cloud ERP will be difficult to ignore. Return for Part 3, where we detail how cloud-based ERP software helps you increase employee engagement and decrease your costs through automated payroll processing.

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Topics: cloud ERP, HR and payroll