5 Proven Ways HCMs Boost Employee Engagement

A whopping 77% of employers expect HR technology to help improve the employee experience – up 10% from last year.

That’s according to Aspect43’s State of HRTech 2024: Product and GTM Insights.

And considering that more than half (56%) of full-time workers plan to look for a new job in 2025, it makes sense for employers to be focused on improving the employee experience in hopes of boosting employee engagement and retention.

The Importance of Employee Engagement

Employee engagement is a core component of a company’s success. No matter what you’re talking about – productivity, leadership, professional growth, retention, recognition, culture, well-being, etc. – everything ties back to employee engagement.

So how can you make sure you’re leveraging your company’s Human Capital Management (HCM) platform to keep employees engaged?

HCM Tools Employee Engagement Examples

A well-functioning HCM platform can help boost employee engagement in several ways,  according to Kyle Berry, principal at Sendero, a consulting firm that helps companies with HCM selections and implementations, among other things.

1. Streamlined Onboarding

HCM systems simplify onboarding by automating workflows, providing new hires with easy access to resources, and ensuring a consistent onboarding experience.

Berry views onboarding as the front porch of the company. As you’re inviting the new employee in, you’re setting a tone. If a new employee has a good experience during the onboarding process, then that’s a good impression that starts the employee-employer relationship on a good note. 

2. Employee Self-Service Capabilities

An HCM gives employees a single place to access and update their information as well as to review their benefits and performance reviews.

Having everything in one location is very helpful for employees, according to Berry. It reduces their dependency on HR to handle red tape issues – like updating their address after a move – and gives employees the freedom to handle tasks at their convenience.

3. Surveys and Analytics

HCMs can deploy employee engagement surveys and then analyze the data to identify trends and areas for improvement.

Then, HR can create actionable plans to address any shortcomings and challenges to make any necessary improvements, says Berry.

Take change management, for example. If changes are happening in the organization, what is the employee sentiment? Specifically, do workers understand what the changes were; why the changes were made; and how the changes will impact them? An HCM can help you keep a pulse on employee sentiment by running surveys and analyzing the results to assess the effectiveness of your change management and identify areas for improvement, Berry explained.

4. Career Pathing Elements 

HCMs also help with career pathing, which allows employees to explore potential career options at the company and map out a path that aligns with their career goals. 

Put another way, it helps employees see their future at the company. 

And it also helps them understand the specific steps they need to take to get to the next level, to earn a promotion and pay increase, Berry says.

5. Personalized Learning and Development

Many HCM platforms provide tailored training learning and development (L&D) programs, which can be based on employees’ job titles and role requirements as well as their individual skills and career aspirations. 

Once employees have identified their ideal career path, they can go to the learning management tools to figure out what training they need to take to build the skills they need to meet their goals, Berry says.

Plus, HR can see the skills and can reach out to employees who are taking advantage of L&D programs and communicate about options for new opportunities at the company.

Ultimately, all of this connectedness in the HCM helps employees feel like the company and HR are invested in them, Berry says. And in turn, they’re more likely to be invested in the company and want to stay. 

Case Study: HCM’s Employee Engagement Tool

You’ve probably heard about Great Place to Work, which aims to help People Leaders build strong company cultures and create positive employee experiences.

Berry often partners with UKG – a software company that offers HCM solutions. A few years ago, UKG bought Great Place to Work and incorporated elements of Great Place to Work directly into UKG’s HCM solutions. And now it’s a built-in part of the HCM solution, Berry says. 

Selecting the Best Employee Engagement Platforms

Of course, UKG isn’t the only technology solution that addresses the employee experience and aims to boost employee engagement. Other popular HR tech solutions focused on employee engagement include:

• Eletive
• Mitratech Trakstar
• Motivosity
• Bonusly, and
• Sogolytics.

When selecting the best option, HR pros will need to prioritize company goals and carefully assess the features of various tools. Specifically, you’ll need to look at:

• Cost considerations: Is this an affordable solution that fits into your budget?
• Usability: When it comes to technology, user experience matters. Is it easy to navigate the platform? Is the software user-friendly?
• Scalability: Can this system grow with your business? Can you add new functionalities as your business needs change?
• Integration options: Will it work with your existing technology? How well does it integrate with other tech solutions?  

For more help choosing the right HR technology for your company, check out our new guide: Best HR Tech Vendors for Small Businesses in 2025.