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UKG Workforce Technology Change Adoption

How HCM tools help HR retain talent in organizational change

07/15/2025

by Kyle Berry

As seen on HR Morning, originally published in March 2025.

Technology is evolving fast — AI, cloud computing, and automation have become common tools. These innovations have changed how teams function and helped boost efficiency. But the changes have also added a layer of complexity to management. That’s why HR teams need modern HCM systems to keep employees engaged and improve retention.

Many C-suite execs underestimate how essential a strong HCM system is to daily operations and employee satisfaction — until something goes wrong. As the workforce continues to evolve, company leaders need to rethink how they approach HCM systems — not just as tech solutions but as game-changers that can improve the employee experience.

Enhance employee engagement with HCM solutions

In a competitive hiring market, investing in the employee experience and creating frameworks for engagement is a must. Beyond being considered a good place to work, putting employees first drives long-term business success. In fact, organizations with highly engaged employees see a 23% increase in higher profitability and 21% lower turnover.

An HCM system can improve an organization’s employee experience. For example, by streamlining HR tasks — think onboarding, benefits management and payroll — HCM systems:

• Increase the HR department’s efficiency, and
• Reduce administrative tasks for employees.

Plus, giving employees mobile access to an HCM system provides them with more autonomy, whether they’re submitting PTO requests or viewing payroll info.

Employees rarely notice a well-run HCM system — until it falls short. For instance, payroll errors or inaccessible benefits platforms can frustrate employees and chip away at their overall motivation and job satisfaction. But a reliable HCM system prevents these problems by keeping things running smoothly.

From data management to employee engagement: The evolution of HCM systems

Historically, HCM systems focused on managing employee data and were viewed as a transactional tool.

Now, they have expanded to prioritize both employee engagement and company culture. For example, UKG recently acquired Great Place to Work and incorporated it into the UKG Pro solution. Using this survey software, employers can gather employee sentiment on a variety of topics, like:

• Organizational culture
• Trust in leadership
• Fairness
• Camaraderie, and
• Consistency in the employee experience.

These insights help HR pros create a workplace where employees feel valued and supported.

By addressing employee feedback, organizations can:

• Boost employee morale, and
• Attract and retain talent.

Leveraging employee feedback through tools integrated into an HCM system helps organizations shape strategies that build a more engaged and high-performing workplace.

Navigate mergers & acquisitions with a unified HCM system

Mergers and acquisitions (M&A) come with plenty of unique challenges, especially for HR.

M&As typically bring together different systems, processes, and workplace cultures, creating the potential for disorganization and employee uncertainty.

Having a unified HCM system is key, as it:

• Helps keep communication clear and consistent
• Consolidates data, and
• Keeps employees engaged during the transition.

During a merger or acquisition, a centralized HCM system can streamline processes and reduce confusion, which helps separate workforces come together. Specifically, it standardizes HR processes, makes onboarding smoother and streamlines benefit management.

For example, the onboarding process for new employees is especially important to make them feel welcomed and help them understand their role in the newly structured organization.

Clear communication about any changes in policies and benefits allows the organization to be viewed as transparent. Also, by centralizing employee data and making HR resources easily accessible, a unified HCM system provides much-needed stability during times of change.

A robust HCM system helps shape the culture of the newly merged organization. HR teams can tap into survey tools to:

• Gauge employee sentiment
• Tackle concerns, and
• Create pathways to align cultures.

Empower employees with career development & growth opportunities

A strong HCM system enables a range of talent management initiatives, such as recruiting, hiring, onboarding, performance evaluations, training and reskilling programs, and more.

When talent management initiatives are personalized, employees can pursue courses and develop skills that align with their career paths and aspirations. This tailored learning experience keeps employees engaged, as they see their future within the company being actively nurtured.

Career development and reskilling programs reassure employees they’re valued and the organization actively invests in their future. This is especially important during times of uncertainty, as employees are more likely to stay with a company that prioritizes their professional growth.

Take career pathing, for example. With rapid tech advancements, especially AI, many employees worry about job security.

The career pathing feature in an HCM system can ease those concerns by showcasing how employees can evolve alongside new technology — instead of being replaced by it.

It’s not just about an employee’s current role but about opportunities ahead. When HR highlights clear career trajectories, many employees feel more confident about their future with the company.

The role of analytics in HCM systems

Many modern HCM systems also include AI-powered analytics tools, which provide HR leaders with invaluable insights into employee sentiment and engagement. AI-powered analytics proactively highlight these findings to HR so it can address potential issues before it’s too late.

For example, predictive analytics can identify patterns indicating dissatisfaction or burnout. These patterns then allow managers to implement targeted engagement strategies. Real-time data also plays a key role in organizational change management, helping leaders make informed decisions that align with employee needs.

When HR teams leverage these analytics, they’re staying ahead of problems instead of reacting to them. That kind of proactive approach creates a more responsive, supportive work environment where employees feel valued and heard.

Meet employee expectations with modern HCM technology

Employees now expect HR technology tools to be as seamless and user-friendly as the apps they use in their personal lives.

Innovative HR tech platforms set benchmarks by prioritizing culture, engagement, and employee development. They help attract top talent and foster a sense of belonging.

Today, a robust HCM system isn’t just a nice extra — it’s an essential tool that makes day-to-day tasks easier and supports employees.

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