Human Capital Management (HCM) | Meaning

What is Human Capital Management or HCM? 

Human Capital Management (HCM) is described as a set of practices and or steps that an organization undertakes when going through the process of recruiting a new employee, managing a new team or a current one in a new way, developing new techs as well as optimizing employees with an effort to increase their productivity and in return their value and or worth to the company. 

There are a lot of benefits to Human Capital Management. Let us take a small glimpse of them in the following list put together – 

  •       HCM results in the recruitment of the correct talent that helps the company grow as well as level up their own potential
  •       Employees who are hired after passing through the HCM are ensured to fit perfectly well into the skill set needed for the workforce in the company
  •       HCM helps the management of teams and bigger departments easier and much more efficient
  •       Adopting HCM ends up increasing the productivity of the company as a whole as it helps in honing the personal skills of not just the employees but also smooths out the work errors and makes the work run more efficiently 

There are a variety of practices that are adopted into Human Capital Management to ensure better and more efficient hiring, managing, development, and so on. Some of them are listed below – 

  •       Workforce planning
  •       Compensation planning
  •       Recruiting and hiring
  •       Onboarding
  •       Training
  •       Time and attendance
  •       Payroll
  •       Performance management
  •       Workflow management
  •       Reporting and analytics
  •       Compliance
  •       Employee service and self-service
  •       Benefits administration
  •       Retirement services