To understand what Human Capital Management (HCM) means and its practices, let’s jump into the topic.
What Is Human Capital Management?
HCM refers to the management of employees of an organization so that they could contribute significantly to the overall productivity of the organization.
Every organization’s key objective should be to provide the best training to its employees so that they become efficient. In HCM, organizations should treat their employees as important resources that are instrumental in the productivity of the organization.
The development and management of employees not only make them an essential resource in the future but also ensure their 100% contribution to the organization.
What Practices Are Included in Human Capital Management?
A wide variety of strategic and administrative practices and processes are included in HCM. Some of them are:
- Hiring and recruitment of new employees
- Onboarding of the selected candidates in the hiring process
- Training of the selected candidates in the hiring process
- Attendance and time management
- Payroll management
- Performance and workflow management
- Employee service
- Benefits management and planning
- Retirement services
What Is the Difference Between Human Capital Management(HCM) and Human Resource Management(HRM)?
|Human Capital management||Human Resource Management|
|It includes HRM functions in addition to the strategic functions.|
It is used to maximize the value and efficiency of the employees of the organization.
|It focuses primarily on the core HR administrative functions.|
It is used to manage the systems that systems to hire and train the workforce of the organization.
What is HCM software?
An HCM software is used to handle the functions and processes required for effective workforce management.
Some of the most popular HCM software are:
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