Human capital management

What is it?

Human capital management (HCM) is a set of practices – also called human capital solutions - related to the effective resourcing of people. These practices are focused on a certain need of a company that wants to provide specific competencies. If your company supports and would like to carry out human capital management (HCM), employees are viewed as valuable assets with quantifiable value that can be increased through specific and measurable management techniques and human capital solutions.

What does it do exactly?

Implementing human capital management processes means a company needs to invest a considerable amount of time and money in training and recruiting people to enhance their interpersonal skills. In order to do this, human capital management practices are implemented in three categories: workforce acquisition, workforce management and workforce optimization.

The key elements that help enable human capital management are:

Core administrative support:

  • Personnel administration
  • Benefits administration
  • Payroll practices
  • Portal/employee self-service
  • Service center
Strategic human capital management support:

  • Talent management
  • Competency management
  • Performance management
  • Compensation planning and strategy
  • Time and expense management
  • Learning, education and training
  • Recruitment
  • Onboarding
  • Workforce management and planning
  • Organization visualization
Other human capital management practices:

  • Reporting and analytics
  • Workflow analytics and management
Human capital management: the benefits:

  • Acquiring the most valuable talent
  • Managing your company’s employee and their talent more effectively
  • Tracking time and performance more accurately
  • Managing your human resources more efficiently
  • Running your payroll workflow
  • Boosting productivity

Measurable employee success

Human capital management can – when applied correctly - offer companies a better way to measure evaluate employees performance and therefore employee success. This way, human capital management can lead to meeting company ROI requirements. Note that companies can only effectively apply human capital management if the business strategies are aligned with the human capital mission.