Criteria to Modernize the Global HCM System

Globalization of the supply and demand for talent is one of the most powerful trends in business, one that has changed the way organizations approach talent acquisition entirely.

But with such a new challenge comes opportunity, and organizations can proactively use globalization to their advantage. But to do so, companies must align their people with their broader globalization strategy.

Today’s human capital management systems are mostly inadequate for this challenge, in large part because enterprises have taken on too many functionally fragmented and locally rooted systems.

This hodgepodge of core HR systems makes it nearly impossible for organizations to deliver a system capable of unearthing the business benefits of globalization.

According to Constellation Research, modern HCM systems should:

  • Support not only language, but also all legal and statutory compliance requirements and key global processes, such as international transfers, cross-country goal and performance management and international salary assessments.
  • Pay efficiently and deliver global compliance, enabling integrated compensation management and labor cost analysis.
  • Deliver talent management capabilities to recruit, measure, train and retain global talent.
  • Allow advanced international workforce management capabilities such as global alignment and optimization of the workforce.
  • Provide extensive HCM process coverage on mobile devices as well as mixed desktop/mobile mode.
  • Meet multi-location and multi-time zone work-life demands for social media integration to enable asynchronous work and collaboration tool integration for synchronous work.
  • Offer cloud-based deployment options that are in line with local data privacy and data sharing legislation.
  • Enable easy and affordable integration of the global HCM data and processes in adjacent enterprise automation systems.
  • Ensure visibility into all HCM information to enable enterprise global strategy while being compliant with local regulations.
  • Account for predictive analytics and psychological and behavioral capabilities that enable better HCM practices, providing greater consideration to the multicultural aspect of global HCM.

Holger Mueller is vice president and principal analyst at Constellation Research, covering cloud technology and big data analytics. He can be reached at