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.
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:
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.