What is Human Capital Management?
Human capital management (HCM) is a set of processes and techniques for improving workforce performance through planning, forecasting, recruitment, training and development, compensation, engagement and succession planning.
Human capital management results in:
- Hiring the right talent
- Having all needed skill sets in the company’s workforce
- Managing employees effectively
- Increasing productivity
Human capital management (HCM) is made possible by a huge array of technologies that help organizations to attract and retain the right talent, build high-performing teams, develop talent, forecast needs, monitor performance, and reward and motivate employees.
Human capital management is necessary for a number of reasons. First, it helps organizations to identify and attract the most talented employees. Second, it helps to ensure that these employees are properly trained and developed. Third, it helps to ensure that employees are compensated fairly and equitably. Finally, it helps to create a positive and productive work environment.
What Practices Are Included in Human Capital Management?
Human capital management covers a wide variety of administrative and strategic practices and processes including:
- Workforce planning
- Compensation planning
- Recruiting and hiring
- Time and attendance
- Performance management
- Workflow management
- Reporting and analytics
- Employee service and self-service
- Benefits administration
- Retirement services