#2: Open human capital management (OHCM)
I use the term OHCM to capture the essence of a couple of trends towards loosening constraints on technology access, experience and control.
Realizing that no single end-to-end system can meet their need for innovation in all human capital management (HCM) areas, companies are rewarding vendors who can consolidate HCM data in a single system of record while allowing the system to extend to meet the companies’ specific needs, especially in areas such as crisis response, health and safety, team management and collaboration, rewards and recognition and global payroll.
Some vendors are responding by creating ecosystems/marketplaces/app stores of partners that come with pre-built connectors, single sign-on capabilities, security assurance, etc. Others have opened up their technology in a Platform-as-a-Service (PaaS) offering enabling customers and third-party developers to build their own applications on the platform. Some vendors are also allowing users with minimal coding skills to create unique experiences based on their role, business unit, geographic location, etc.
To shield employees from the complexity of using such multi-system environments, companies are also looking for a user experience layer that can provide a simplified, personalized, one-stop portal for employees. HR Service Delivery (HRSD) solutions are stepping in to provide this experience, with integrated helpdesk, case management, and knowledge management capabilities. Some HCM vendors are also building HRSD capabilities to provide a consolidated experience.
Can analytics solutions not only predict events but also recommend suitable actions through nudges in the flow of work?
Another trend within OHCM aligns with the World Economic Forum’s Presidio Principles and focuses on empowering employees to own their own data, port it as they prefer and provide consent for processing it. Enabled by blockchain, this trend is weakening the business models of some employers and vendors that currently own and even monetize employee data. Efforts are underway to build consortiums of key players focused on developing secure and regulated workforce databases using blockchains and, ultimately, transfer control to employees.