What HCM can learn from CRM
People are critical to business. Whether they’re customers buying products or employees making them, how companies manage them leads to their success – or failure. While CRM and HCM software started at about the same time, CRM technology has led the HCM space in several innovations including:
Cloud. CRM apps were the first to go to the cloud, with HCM following closely after. In both domains, this meant not just dramatic pricing changes, but greater flexibility, faster time to value, and greater ability for business users to adapt apps without IT support.
Analytics and AI. From simple embedded reporting to full-on artificial intelligence, CRM led innovation in embedded assistance and intelligence – and HCM is following the CRM lead.
Consolidation. Just as CRM has evolved from point solutions to integrated suites that provide sales, marketing, and service under a single umbrella, companies are increasingly looking to application suites instead of point applications for recruiting, WFM, talent, and succession to manage the entire employee lifecycle.
So, what’s next for HCM? The next step in HCM takes its lead from CRM as well, with a focus on employee experience. Just as CRM evolved from transaction records to systems of engagement and insight, HCM innovations are focused on the entire employee lifecycle and go far beyond payroll. As HR undertakes its digital transformation, there are a few lessons it can learn from CRM’s successes – and failures.
First, just like a customer experience is far more than a CRM transaction, employees – and their experiences – are far more than just the HR record. Companies that support employees who bring their whole selves to work – and provide HCM systems to support the concept – benefit from 100% employees. This means D&I, support for volunteering and philanthropy, and support for ongoing collaboration and feedback far beyond traditional HR.
Second, data must be trusted to be valuable. Transparency is key when using AI to provide insights or recommendations, whether it’s the next best action with a customer or the next best hire. This includes transparency within the app about how recommendations are derived, and transparent policies and practices around the ethical use of data.
Finally, whether it’s managing customers or employees, the technology companies use is only as effective as the people using it. Usability is key, but effective adoption goes far beyond usability. Empowering user communities, showing individual users how using the technology can make their work life better, and building a fan base beyond the HR department is critical. Beyond change management, digital transformation – be it in CRM or HCM – requires human champions.