HCM Features, Modules & Capabilities

Table of Contents

Human Capital Management (HCM) Software Features Overview
Detailed HCM Software Solution Functionality Reports
Key HCM Software Modules and Features
Using HCM Software to Streamline and Enhance Talent Acquisition
     Automating and Streamlining Resume Sourcing
     Automating and Optimizing Candidate Screening and Selection
     Streamlining and Enhancing Onboarding
     Empowering Talent Attraction Through Career Portals
     Modeling Employee Hierarchies and Relationships
     Using Talent Assessments to Evaluate and Validate Candidates
     Centralizing and Optimizing External Recruitment Partners
     Using Talent Acquisition Analytics to Unlock Recruitment Insights
Using Core HR to Centralize and Optimize Employee Data Management
     Automating Payroll Processing and Compliance
     Using Personnel Management to Centralize Employee Data and Automating HR Processes
     Streamline Benefits Enrollment and Administration
Using Talent Management to Advance Employee Growth and Organizational Success
     Using Performance Management to Drive Employee and Organizational Success
     Strategically Rewarding and Retaining Top Talent Through Compensation Management
     Empowering Workforce Development Through Learning Management Systems
     Advancing Employee Growth Through Career Development and Succession Planning
Optimizing Staffing and Productivity with Workforce Management
     Centralizing Timekeeping and Spend Management with Automated Tracking
     Using Leave Management to Centralize Leave Policies and Streamlining Time-Off Requests
     Automated Scheduling for Streamlining Shift Planning and Coverage Optimization
     Strategic Labor Forecasting and Planning Drives Optimal Staffing Levels
     Centralizing Employee Data for Strategic Workforce Planning and Cost Analysis
Empower Employees and Streamline HR Through Self-Service Functionality
     Empowering Employees and Optimizing Productivity with User Tools
     Centralize Employee Data & Enable Self-Service Profile Management
     Using Information Input and Retrieval Tools to Streamline Data Access & Collection
     Using Employee Collaboration Tools to Foster Connections
     Employee Self-Service to Gain Access to Policies and Procedures
Using Advanced HCM Platform Capabilities for Organizational Agility
     HCM Security Tools Safeguard Data and Optimize Access
     Flexible Deployment Options Empower Unique HCM Technology Strategies
     Robust Technical Architecture for Scalability and Integration
     Delivering Intuitive and Accessible HCM User Experiences
     erver Administration Optimizes System Stability and Continuity
Types of HCM Software and Industry-Specific HCM Systems
     Industry-Specific HCM Software Features
     Enterprise Size and Other Factors Influence HCM Software Features
Selecting the Best HCM Software
   

Human Capital Management (HCM) Software Features Overview

Human Capital Management (HCM) software is critical for organizations to manage their workforce, helping them with key HR processes like recruitment, onboarding, payroll, benefits administration, performance management. Adoption of HCM systems has increased as organizations realize improved efficiency, data-driven decision-making, and enhanced employee experiences, among other benefits. The main types of HCM solutions on the market are comprehensive suites, point solutions, and best-of-breed combinations. Comprehensive HCM suites consolidate multiple HR functions into a single platform. They offer broad functionality but can be complex and expensive. Point solutions focus on a specific HCM process like recruitment or payroll. They are simpler and more affordable but lack integration. Best-of-breed solutions combine specialized point solutions to meet an organization's unique needs, balancing customization with complexity. Popular HCM solutions include SAP SuccessFactors for its global capabilities, Workday for its user-friendly interface, UKG Pro for its strong payroll features, and BambooHR for small to midsize businesses (SMBs). Each has strengths in different areas based on the vendor’s specialization. When selecting an HCM system, it’s important to evaluate both the breadth and depth of functionality.

Download HCM Requirements Checklist

Detailed HCM Software Solution Functionality Reports

Evaluating HCM software requires examining the extensive functionality contained in solutions. Sifting through countless software features to create your requirements list and discover the best-fit system takes considerable effort. With over 30 years of assisting companies assess HR technology, we have compiled an unparalleled database of HCM software capabilities. We have also developed impartial industry averages and a rigorous methodology for benchmarking solutions. You can see high-level benchmarking in our free HCM software profiles, while our detailed reports drill down into individual product features. These Excel reports catalog the full spectrum of features you should expect in competitive HCM solutions. We then indicate the level of support offered for every functionality item by the specific system you are evaluating. For simpler navigation, features are arranged into intuitive HCM modules like core HR, payroll, talent management. For example, the Workday features and modules list (also known as a software capabilities report) maps its 1,235 features into HCM modules/submodules. Each feature has a rating denoting Workday’s level of support from full, out-of-the-box support, to no support. With these reports, you can gauge how well Workday covers broader feature areas and supports specific functionalities. Leveraging our unmatched data and benchmarks, TEC’s HCM software capabilities reports empower your team to thoroughly assess HCM solutions. You will gain insight into both the breadth of modules and depth of individual features supported to make an informed selection.

Key HCM Software Modules and Features

HCM software includes a wide range of modules and features to manage an organization's workforce, leveraging latest technologies like AI, machine learning, and predictive analytics.

For example, intelligent recruitment tools can now auto-rank and shortlist candidates to simplify hiring. Real-time engagement analytics help managers understand employee performance. And self-service payroll reduces manual work through automation.

Let’s explore extensive HCM functionality spanning six key modules:

• Talent Acquisition
• Core HR
• Talent Management
• Workforce Management
• Employee Self-Service
• Product Technology

Our benchmark database catalogs 1,424 features grouped into these modules and their submodules.

To fully evaluate HCM solutions, download one of our detailed software capabilities reports.

To fully evaluate HCM solutions, download one of our detailed software capabilities reports. These impartial reports indicate the level of support offered for every functionality item. You will gain insight into both the breadth of modules and depth of features supported to make an informed HCM software selection.

Using HCM Software to Streamline and Enhance Talent Acquisition

The Talent Acquisition module in HCM systems focuses on optimizing and automating key hiring and onboarding processes, enabling organizations to efficiently source, track, assess, hire, and onboard qualified talent.

Specific features in Talent Acquisition provide functionality like intelligent job matching, automated screening questions, candidate relationship management tools, and customizable onboarding checklists. These features leverage the latest AI and machine learning innovations to remove manual efforts and provide data-driven insights.

For example, résumé parsing technology can extract critical candidate data to automatically score and rank applicants; predictive analytics help determine the best sources for finding ideal candidates; and chatbots answer common questions to engage interested talent 24/7.

The talent acquisition module contains over 270 granular features categorized into 11 key submodules. The top categories by number of features are:

• Vendor Management System Portal (137 features)
• Resume Sourcing (17 features)
• Talent Acquisition Analytics and Reporting (20 features)

Robust HCM solutions provide strong capabilities across all talent acquisition submodules to help build and nurture a winning workforce.

Get our HCM RFP Templates Checklist

Automating and Streamlining Resume Sourcing

With 17 specific features to optimize sourcing, The Resume Sourcing submodule enables organizations to efficiently attract and screen top talent by automating the process of identifying and engaging with qualified applicants. AI-powered tools to parse resumes, score candidates, and automate outreach, saving recruiters time and connecting them with best-fit talent faster.

Automating and Optimizing Candidate Screening and Selection

The Screening and Selection submodule in talent acquisition enabled organizations to efficiently identify and advance top applicants to the next stages. With 9 robust features, this module leverages the latest AI innovations like virtual interviews, predictive analytics, and automated assessments to remove manual efforts and bias from hiring decisions.

By automatically screening candidates against current openings and intelligently routing qualified applicants for further review, this submodule saves recruiters time while connecting managers with best-fit talent faster. It provides insights to guide decision-making during selection processes and structured workflows to ensure consistency.

Streamlining and Enhancing Onboarding

The Onboarding submodule optimizes processes for smoothly transitioning and integrating newly hired employees, resulting in automated workflows that simplify administrative tasks while conveying the company culture to set up new hires for success.

With 9 robust features, HCM solutions provide customizable onboarding checklists, self-service portals to complete documentation, and tools to track and guide new hires through training and ramp-up activities. The aim is to enhance hire retention and productivity.

Empowering Talent Attraction Through Career Portals

The Career Portal (E-Recruiting) submodule enables organizations to promote their employer brand and attract top talent by providing an engaging, user-friendly career site. This simplifies job searches, applications, and communications for candidates while giving recruiters better insights through integrated analytics.

The submodule’s 14 features make it easy to create modern, mobile-friendly career portals that reflect company culture. Customizable modules like culture overviews, employee spotlights, and advanced search improve candidate experiences during the discovery phase, while back-end integrations with the recruitment system provide a streamlined application process and tools to manage outreach at scale.

Modeling Employee Hierarchies and Relationships

The Organizational Structures & Modeling submodule contains 10 key features for hierarchical modeling and enables configuring and visualizing formal reporting relationships between employees. It offers customizable org charts, dynamic updates, integration with core HR data, drill-down insights, and access permissions to support HR and managers in managing team structures.

Using Talent Assessments to Evaluate and Validate Candidates

The Talent Testing and Assessment submodule enables organizations to objectively evaluate candidates through customized skills, behavioral, and cognitive assessments. With 10 features, it includes customizable job-specific assessments, cognitive and aptitude exams, and culture contribution evaluations to back up hiring decisions with data-driven insights on job fit.

Centralizing and Optimizing External Recruitment Partners

The Vendor Management System (VMS) Portal in Talent Acquisition modules enables organizations to efficiently collaborate with external staffing partners. This submodule centralizes and optimizes the process of distributing open requisitions to agencies and independent contractors for sourcing support.

With 137 granular features, this submodule enables configurable workflows to interview candidates, collect timesheets, approve payments, and more, thereby managing the entire staffing lifecycle.

Key External Recruitment Partner Management Capabilities

• Customized agency workflow—Map out tiered review processes to interview, assess, and advance partner-sourced candidates.
• Timesheet integration—Seamlessly collect verified hours from contingent workers for automated payroll processing.
• Market rate benchmarking—Enable rate negotiation with insight into competitive pay ranges by location and job type.
• Spend analytics—Gain visibility into recruitment costs by agency or program to optimize budget and ROI.
• Automated invoice processing—Configure system to process invoices by set rules for approvals to accelerate payments.

Using Talent Acquisition Analytics to Unlock Recruitment Insights

Talent Acquisition Analytics and Reporting enables organizations to optimize their hiring outcomes through data-driven insights. With 20 capabilities, this tool provides customizable dashboards, metrics tracking, and standard reports to evaluate recruiting effectiveness and inform future strategy.
 
With comprehensive analytics, including the ability to assess performance by source, identify biases, and forecast hiring needs, organizations gain strategic visibility into what works across the talent funnel. This in turn enables data-driven decision-making to enhance processes, reduce costs, and improve hiring outcomes over time.

Using Core HR to Centralize and Optimize Employee Data Management

The Core HR module is the foundation of HCM software, enabling organizations to centralize employee records, payroll, and benefits in a single system. With 229 features, Core HR simplifies people data management, process automation, and actionable workforce analytics.

Core HR helps standardize and structure employee information like job titles, reporting chains, compensation, time-off accruals, tax data, and more, affording a single source of truth about the workforce with self-service access and workflows to keep details updated.

For rapidly growing companies, Core HR delivers scalability to manage expanding global workforces. Automated payroll and benefits administration streamlines cumbersome compliance tasks across locations, and embedded analytics enables data-driven insights to optimize labor costs and strategy.

The Core HR module contains 3 main submodules:

• Personnel Management (99 features)—Maintain job, compensation, and personal data
• Payroll (81 features)—Automate pay processing and tax reporting
• Benefits (46 features)—Manage and enroll employees in plans

With extensive functionality across these foundational HCM submodules, Core HR enables people teams to structure a unified workforce database, reduce overhead, and unlock an analytics edge for the business.

Automating Payroll Processing and Compliance

The Payroll submodule enables organizations to efficiently calculate paychecks, handle taxes and deductions, process payments, and ensure compliance. With automation, payroll software saves people teams significant time on cumbersome calculations and reporting across global workforces.

Payroll contains 81 features categorized into 5 key areas: earnings/deductions management, absence tracking, garnishments, reporting, and year-end processing. For rapidly expanding companies, automating payroll delivers the scalability and consistency needed to smoothly manage growth.
 

Key Payroll Capabilities

Features	Purpose / Benefits
Configurable earnings/deductions	Flexibly set up an unlimited number of earnings and deduction types to support complex pay policies and collective bargaining rules.
Time tracking integration	Seamlessly bring in verified hours from timekeeping systems to automatically calculate gross pay each period based on wage rates.
Automated tax calculations	Payroll software automatically computes federal, state and local tax withholdings each check based on latest regulations for accuracy and compliance.
Off-cycle payment processing	Ad hoc check processing handles commissions, bonuses, retro pay and terminations outside regular payroll runs while updating general ledger.
Multi-country capabilities	Global payroll features allow configuring country-specific earning/deduction types, bank integrations, payment files, and reporting for consistency across borders.

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Using Personnel Management to Centralize Employee Data and Automating HR Processes

The Personnel Management submodule allows for centralizing employee information into a single system of record while automating cumbersome HR processes—resulting in simplified data management, reduced overhead, and workforce analytics empowering data-driven decisions.

With 99 granular features, Personnel Management helps standardize and centralize job titles, reporting structures, compensation details, skills, performance metrics, and more. Configurable workflows automate promotions, offboarding, compliance reporting, and other people changes to optimize HR operations.

An HR system of record delivers the scalability to seamlessly manage global expansion and rapid business growth. With embedded analytics, organizations gain visibility into labor costs, turnover trends, diversity metrics, and other insights to enhance strategy.

Key Personnel Management Capabilities

Features	Purpose / Benefits
Customizable org modeling	Visualize formal reporting structures with interactive org charts filtering by department, location and other attributes for analysis.
Automated process workflows	Configure rules-based workflows across the employee lifecycle to standardize and accelerate essential HR tasks like hiring, promotions, offboarding.
Employee self-service	Empower employees to access pay stubs, request time off, update contacts and more to offload manual HR work.
Talent profile consolidation	Centralize skills, performance reviews, goals and other talent data in one place for a complete view of each employee.
HR analytics and reporting	Gain workforce insights with embedded analytics on trends like turnover, compensation, diversity metrics and more to inform planning.

Streamline Benefits Enrollment and Administration

HCM software’s Benefits submodule centralizes and optimizes the selection, enrolment, and management of employee benefit plans by simplifying access to health insurance, retirement accounts, paid time off accruals, and other offerings crucial for attraction, retention, and productivity.

With 46 features, Benefits functionality automates the cumbersome tasks of tracking eligibility, sending enrollment reminders, processing life event changes, and ensuring compliance. The submodule allows for scalability to smoothly handle benefit administration across borders as the workforce grows globally.

Key Benefits Capabilities

Features	Purpose / Benefits
Health plan modeling	Configure various medical plan options with deductibles, out-of-pocket maxes, and coverages to align with company policies.
Life event change automation	Enable employees to seamlessly adjust coverage like adding dependents without paperwork through self-service life event triggers.
ACA compliance reporting	Automate creation of mandated documents like 1094 and 1095 IRS forms to avoid penalties and audits.
Benefits self-service	Empower employees to view their selected coverages, costs, providers and claims details in real-time through online portals.
Global benefits management	Centralize tracking of international benefit plans with flexibility to account for country-specific eligibility rules, deductions and carriers.

Using Talent Management to Advance Employee Growth and Organizational Success

With 582 robust features, the Talent Management module enables organizations to optimize performance, development, compensation, and learning.

Talent Management functionality facilitates initiatives like succession planning, pay equity analysis, skills-based career paths, and self-directed learning. Configurable performance review workflows provide visibility into team progress and AI-driven recommendations guide managers to personalized development opportunities for closing skills gaps.

With AI advances, automatic skills inferences from employee profiles and collaboration data can recommend hyper-targeted training, and predictive performance modeling helps forecast top talent likely to leave so proactive retention plans can engage them.

Talent Management empowers people leaders to attract, motivate, and retain top talent. It enables them to optimize team growth, productivity, and advancement in alignment with organizational objectives—with 580+ features categorized into 4 submodules:

• Career Development and Succession Planning (74 features)
• Performance Management (61 features)
• Compensation Management (65 features)
• Learning Management (378 features)

Using Performance Management to Drive Employee and Organizational Success

With 61 features, Performance Management enables people leaders to set clear expectations, monitor employee progress, and recognize achievements, ensuring employees remain aligned with organizational objectives and focused on the activities that drive top results.

Performance Management automates goal-setting, check-ins, reviews, and competency evaluations to boost productivity. Key features include configurable workflows with reminders and intelligent recommendations to guide managers, customizable performance dimensions to facilitate well-rounded feedback, and embedded analytics to identify training needs and talent risks so that proactive retention plans can be put in motion to engage top performers.

There are 4 additional submodules within Performance Management: Goal Management, Ongoing Feedback, Performance Evaluations, and Analytics & Reporting.

Strategically Rewarding and Retaining Top Talent Through Compensation Management

Compensation Management enables organizations to optimize pay structures, incentives, and rewards to attract, motivate, and retain critical talent. With 65 capabilities, Compensation Management helps people leaders make data-driven decisions when compensating employees.

This submodule contains 6 additional submodules focused on specialized functionality areas. The extensive tools simplify traditionally complex tasks like conducting pay equity analysis, mapping pay grades to performance ratings, modeling the impact of pay changes company-wide, and automating incentive payouts.
 

Key Compensation Management Features

Features	Purpose / Benefits
Custom incentive plans	Flexible tools to model diverse bonus, commission and recognition programs with complex rules tailored to roles for optimal motivation.
Pay equity analysis	Identify biases and close unfair pay gaps across gender, ethnicity and other demographics through statistical modeling and comparison tools.
Salary benchmarking	Enable compensation competitiveness by comparing employee pay against real-time, localized market salary ranges by job.

Empowering Workforce Development Through Learning Management Systems

Learning Management (LM) enables organizations to strategically build employee skills, align development with goals, and track training effectiveness. With 378 features, LM guides continuous personal and professional growth.

LM functionality like customizable learning plans, automated training assignments, and skills gap analysis fosters a motivated, high-capacity workforce. Leveraging innovations like machine learning, LM recommends hyper-targeted development opportunities based on interests, aspirations, and collaboration patterns.

The extensive LM tools empower people leaders to advance institutional knowledge, ensure compliance, and forecast skills needs for the future. There are 46 submodules within Learning Management focused on specialized functionality.

Advancing Employee Growth Through Career Development and Succession Planning

With 74 features, the Career Development and Succession Planning submodule allows for strategically nurturing employee skills, performance, and advancement to meet current and future business needs—thereby boosting employee growth and development over the long term.

There are 6 additional submodules within Career Development and Succession Planning focused on specific functionality areas.

Key features include career path mapping, automated successor identification, skills gap analysis, personalized training recommendations, and succession risk reporting.
 

Optimizing Staffing and Productivity with Workforce Management

The Workforce Management module allows organizations to optimize staffing levels, employee productivity, time tracking, and scheduling. Workforce Management offers 91 features for efficient planning, accurate forecasting, and maximizing labor spend effectiveness.

Using machine learning algorithms, the module considers demand fluctuation predictions to generate highly accurate staffing level recommendations. Predictive scheduling considers historical absenteeism rates by site and season while ensuring equitable shift distributions.

The Workforce Management module is broken down into 6 submodules to optimize labor allocation, productivity, costs, and compliance across the organization:Resource Identification and Classification (15 features)

• Resource Allocation and Analysis (9 features)
• Time and Expense Tracking (12 features)
• Leave Management (15 features)
• Scheduling (21 features)
• Workforce Planning and Forecasting (13 features)

Centralizing Timekeeping and Spend Management with Automated Tracking

With 12 capabilities, the Time and Expense Tracking submodule enables organizations to gain visibility into labor hours and business expenses for optimized workforce planning and spend management.

This submodule consolidates verified attendance, leave, and itemized spend data, and its configurable rules automate complex processes such as overtime pre-approvals, mileage reimbursements, and cost allocation.

Standardized tracking offers real-time reporting on productivity rates, absenteeism trends, and budget overages to inform staffing decisions, and provides analytics to maximize labor ROI.

Using Leave Management to Centralize Leave Policies and Streamlining Time-Off Requests

Leave Management allows for centralizing paid time-off policies, entitlements, and requests while ensuring compliance. It simplifies tracking employee vacation days, sick time, and leaves of absence in one system. With 15 capabilities, Leave Management allow process automation, visibility into absence trends, and tools optimizing coverage during time-off.

By consolidating absence data and connecting to payroll systems, Leave Management provides a single source of truth about time-off accruals, balances, approvals, and usage. Configurable workflows make it easy for employees to submit requests while automated alerts notify managers to ensure adequate coverage. Embedded analytics deliver insights to identify absenteeism spikes so proactive policy changes can strengthen engagement.

Automated Scheduling for Streamlining Shift Planning and Coverage Optimization

With 21 capabilities, the Scheduling submodule allows organizations to efficiently create, manage, and optimize employee shifts and coverage plans—thereby simplifying complex tasks like forecasting labor needs, assigning equitable rotations, managing shift trades, and ensuring optimal headcount coverage.

Scheduling contains no additional submodules, only specialized features focused on simplifying shift management for people leaders.

Strategic Labor Forecasting and Planning Drives Optimal Staffing Levels

The Workforce Planning and Forecasting submodule with its 13 features leverages historical data and analytics to predict labor needs, empowering strategic workforce planning for optimal budgeting and staffing.
 

Centralizing Employee Data for Strategic Workforce Planning and Cost Analysis

The Resource Identification and Classification submodule contains 15 features to centralize employee information into standardized profiles for consistent tracking, optimal workforce planning, and insightful cost analysis. Key features include configurable job profiles, automated org chart generation, labor cost analytics, overtime policy enforcement, and contingent workforce tracking. There are no additional submodules.

Empower Employees and Streamline HR Through Self-Service Functionality

The Employee Self-Service module provides employees with centralized access to tools and information to manage their own data and complete tasks independently.

Self-service portals give staff quick access to pay stubs, time-off requests, contact updates, training content, and more on any device. Workflow automation features easily route data changes entered by employees to the appropriate people for processing or approvals. Announcements and company branding features also allow consistent internal communications from leadership.

Additionally, chatbots can answer common policy questions 24/7 while analyzing tone to identify frustrations early, whereas sentiment-based pulse surveys provide insights to enhance programs and transparency.

The Employee Self-Service module contains 8 submodules focused on specialized tools like collaboration forums, input workflows, and document access.  The module aims to increase productivity, reduce administrative overhead for HR, and achieve higher engagement levels.

Empowering Employees and Optimizing Productivity with User Tools

The User Tools submodule within the Employee Self-Service module offers 14 features to provide employees with centralized access to knowledge bases, collaboration forums, surveys, and input workflows in one portal, thereby enhancing  productivity and engagement.

Employees can quickly search policies, submit questions to HR communities, provide input on new initiatives, and access the latest workplace services information. Analytics into employee adoption allows for continual assessment and optimization of portal effectiveness.

Centralize Employee Data & Enable Self-Service Profile Management

With 7 key features, the Employee (User) Profile submodule provides a centralized location for employees to access and manage their own HR data—reducing the burden on the HR department while empowering employees with self-service capabilities.

Employees can access their profiles to get personal details, job info, time-off balances, pay and tax data, emergency contacts, and other info specific to them in a single dashboard. They can use configurable self-service tools to change and maintain updated records of addresses, phone numbers, email contacts, and the like.

Using Information Input and Retrieval Tools to Streamline Data Access & Collection

The Information Input and Retrieval submodule boasts 16 features that enable the submission of and access to information through centralized portals, increasing efficiency by avoiding paperwork and email chains.

Information Input and Retrieval functionality covers submission forms, access permissions, categorization tools, etc. for collecting data, with configurable input templates connected to automated review processes for standardizing data collection. Advanced permissions based on job function, seniority, and other criteria allow access to confidential information.

Using Employee Collaboration Tools to Foster Connections

The Collaboration submodule, with its 6 features, such as knowledge sharing forums, pulse surveys, and idea crowdsourcing, allows employees to build connections with peers—gaining insights and enhancing productivity.

Employee Self-Service to Gain Access to Policies and Procedures

With 8 key features, the Company Policy Information submodule enables staff to easily view company policies related to codes of conduct, technology usage, time-off requests, and other procedures.

Employees can quickly search policies by keyword to find answers to common questions, and updates automatically notify staff of changes rather than relying on sporadic emails—ensuring consistent access and interpretation across the workforce.
 

Using Advanced HCM Platform Capabilities for Organizational Agility

The Product Technology module, with 177 features, provides the infrastructure and tools to enable rapid deployment, intelligent automation, and optimized performance—and consequently organizational agility, innovation, and scale.

Leveraging AI capabilities, natural language processing chatbots can answer employee questions while analyzing tone for insights to enhance programs, and predictive algorithms guide managers on how to retain top talent by modeling likely turnover risks.

The Product Technology’s 5 submodules are:

• Technical Architecture (36 features)—backend framework optimizing scalability and integration
• Platforms (39 features)—UI controls and accessibility optimizations
• Security (57 features)—data protection tools spanning encryption to access controls
• Server Administration (24 features)—usage monitoring and performance optimizations
• Cloud & Hosting Options (16 features)—deployment flexibility for unique needs

HCM Security Tools Safeguard Data and Optimize Access

The Security submodule within the Product Technology module provides organizations robust protection for sensitive employee data. Its 57 key features span encryption, access controls, and usage audits—enabling compliance to corporate data policies and external regulations while optimizing system access.

Extensive user permissions facilitate access tailored to each employee’s role; encryption and masking secure sensitive fields like social security numbers; and activity monitoring provides visibility enabling threat response.

There are 3 additional submodules within Security focused on specialized safeguards.

Flexible Deployment Options Empower Unique HCM Technology Strategies

With 16 features, the Cloud, SaaS, and Hosting Options submodule enables configurable deployment models aligned to each organization’s unique HR technology strategy.

Deployment Options functionality supports on-premise, hosted private cloud, public cloud software as a service (SaaS), and hybrid models—empowering organizations to balance integration, data residency, and operating costs based on their needs. For example, a global firm may run a single-tenant instance in their private cloud for control while smaller groups leverage multi-tenant SaaS.

Robust Technical Architecture for Scalability and Integration

With 36 features, the Technical Architecture submodule allows for optimizing system stability, interoperability, and scalability.

It enables integrations across HR and third-party systems, with configurable middleware and open APIs facilitating these connections, and extensive customization controls catering to the specific needs of a global workforce.

There are 2 additional submodules within Technical Architecture focused on specialized tools.

Delivering Intuitive and Accessible HCM User Experiences

The Platforms submodule, with 39 features, enables engaging experiences for all employees and streamlined navigation to enhance usability, access, and productivity.

There are templates with responsive design across desktop and mobile devices, extensive accessibility tools for access by employees with disabilities, and multi-language support for global workforces.

Server Administration Optimizes System Stability and Continuity

Server Administration boasts 24 features, such as automated load balancing, usage analytics, scheduled maintenance, high availability, and change tracking. It enables IT teams to monitor HCM system performance, apply updates, ensure backups, and optimize configurations—thereby maximizing system uptime.
   

Types of HCM Software and Industry-Specific HCM Systems

Different industries, such as healthcare, retail, and manufacturing, face unique workforce challenges and requirements and thus need HCM systems to cater to these specificities. For example, healthcare-based  HCM systems enable streamlined staff scheduling and shift management considering complex healthcare labor rules and staff skill/certification requirements, among other capabilities, whereas retail-focused HCM systems enable retail scheduling of associates, with flexible shift templates, to match customer demand fluctuations with staffing levels at specific stores during peak seasons.

 

Industry-Specific HCM Software Features

Below are examples of specialized HCM functionalities beneficial for these industries:

• Healthcare—Clinician license tracking, patient acuity-based scheduling, infection risk monitoring
• Retail—Seasonal workforce planning, sales performance dashboards, flexible shift templates
• Manufacturing—Shop floor integration, product build / machine operator mapping, safety incident tracking

Industry-specific HCM solutions include Viventium for home care agencies and skilled nursing facilities, Reflexis Systems for retailers, and UKG Pro for manufacturers, which provide specific capabilities needed for these industries out of the box—thereby enabling better ROI.

Enterprise Size and Other Factors Influence HCM Software Features

In addition to industry specification, HCM software features are influenced by the size of the organization. SMBs prefer simplicity with streamlined features enabling faster HCM system setup—e.g., BambooHR for SMBs. Large enterprises often require more extensive configuration and customization to meet their complex HCM needs. Though initially more time-consuming to set up, customizable HCM systems like SAP SuccessFactors HCM Suite allow extensive configuration to support unique workflows and deep integrations and are best suited for large, complex organizations over the long term.

Below are some key HCM functionalities that vary in importance by organization size and industry:

• Configurable workflows—Highly customizable approval chains, routing rules, and process triggers suit the complex needs of larger companies.
• Global capabilities—Multinational corporations need multi-country compliance and multiple language support to manage cross-border workforces. 
• Industry-specific tracking—Specialized data such as clinician credentials meets the unique needs of healthcare, whereas shop floor time meets those of manufacturing verticals.

Selecting the Best HCM Software

Carefully evaluating HCM systems for alignment to your organization’s unique requirements, use cases, and budget is crucial for long-term value realization. The optimal HCM software enables simplified data management, process automation, enhanced employee experiences, and data-driven workforce insights.

As solutions increasingly leverage innovations like AI and machine learning, they provide more capabilities to strategically optimize talent management. When selected correctly based on thorough assessment of both breadth of modules and depth of functionality, HCM technology delivers enables organizations to enhance productivity, engagement, and retention. You can download our HCM software requirements template and our HCM RFP Template to gather all the features of HCM systems for your HCM business needs. Download our detailed software capabilities report with more than 1,400 benchmarked features and to simplify your HCM software comparisons, check our HCM software comparison reports where you can compare different HCM systems head to head.

When shortlisting vendors, also examine industry specialization, configurability for growth, and total cost of ownership models. Check out some tips on carefully conducting your HCM software selection process including our HR software buyer’s guide. Also learn about our proven software selection process, perfected over 3 decades of serving customers in various verticals. Finally, connect with our team of advisory experts with over 30 years assisting global organizations to get personalized guidance simplifying your HCM software selection process and digitally transforming your workforce for enhanced efficiencies.