One of NetSuite’s big SuiteWorld 2017 announcements, SuitePeople, is all about human capital management (HCM), which means that NetSuite HCM integration is now more important than ever.
What is HCM?
HCM aims to quantify the “total people cost” within an organization; people cost includes everything from compensation and benefits to investments in training and development. According to the 2015 Human Capital Management Vendor Brandscape Report, “People costs can be anywhere from 40 percent to 70 percent of the total costs in any business.”
To determine total people cost, HR professionals need data from a whole host of systems, including HRIS, CRM, ERP like NetSuite and benefits, recruitment and training systems. Financial data like payroll, compensation and quoting from NetSuite and resource planning information from on-premise and cloud HRIS, CRM apps and NetSuite instances all need to be connected to paint the right, complete total people cost picture.
As HR turns its focus to HCM, planning and optimizing the significant investment in people that all companies make is crucial. When NetSuite is integrated with traditional HR systems, total people cost can not only be quantified, but also be tracked, forecasted and improved.
Armed with the data from connected financial management, HR can make strategic business decisions now and well into the future.
NetSuite HCM Integration Strategy
In today’s rapidly changing HR world, Deloitte calls for a host of solutions to incorporate into a multiyear strategy, including “cloud enterprise resource planning (ERP) platforms, apps, analytics, and a range of tools for AI, case management, and other solutions.”
The solutions are meant to contribute to strategic workforce planning that includes immediate annual plans as well as scenario-based, five-year forecasts. But how will these solutions work together, especially when some are on-premise behind a firewall and others are in the cloud? How will the data that’s so critical to building plans and increasing revenue be accessed?
An integration strategy is actually more important than the solutions you select. Taking a connectivity-first approach gives you the power, flexibility and scale to move at the speed needed to succeed in the digital age.
Because NetSuite is already such a powerful part of your business, the natural tendency is to quickly cobble together connectivity to your other solutions. However, this nearsightedness can result in an ongoing drain of valuable resources, increase budgets and derail strategic plans.
An HCM strategy should always include an integration strategy, because disparate systems, apps and tools become strategic solutions only when they are connected and the data can be utilized throughout the entire employee lifecycle from recruitment to separation.