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