When Microsoft announced that it was buying LinkedIn last June, many were surprised and asked whether Microsoft is going to develop its own human capital management (HCM) apps. HCM is associated to but it is not the same to human resource management solutions. HCM is more about the professional growth of employees and not the day-to-day functions that are being handled by human resource management (HRM) systems.
Microsoft officials said that the company is not building its own HCM apps but according to CEO Satya Nadella, he is considering HCM software as a very exciting opportunity. On the other hand, LinkedIn CEO Jeff Weiner said that when the acquisition was announced it was an enormous business opportunity for but an entirely new one for Microsoft.
There were no announcements regarding plans to develop new HCM software as an immediate priority but there will be expansion beyond LinkedIn’s recruitment, learning and development focus to include hiring, management, motivation and leading employees which is also known as human capital management.
The spokesperson of Microsoft pointed to the Dynamics 365 roadmap page that mentions some HCM projects on the development stage. The projects include new employee and manager self service capability including field support and new templates for HR processes. This sounds like an extension of the different kinds of HR capabilities that are already present in Dynamic 365 Operations instead of brand new apps.
There is no news on how many apps Microsoft will be developing but officials are talking that it will run the gamut of needs from hiring to retiring. It will make sense if Microsoft develops next generation talent management systems that could be advantageous for LinkedIn network and connections like contingent labour management, success planning and well coordinated asset management. Microsoft may eventually develop basic hire-to-retire functionality that will work best for SME’s.
With HR management software, human resources can be managed to maximize productivity and minimize possible human errors. Employee skills in the company can be developed and leveraged as an important investment. With any major investment, a company requires the right tools to manage the human assets.