Human capital management (HCM) is the act of systematically recruiting, managing and developing a workforce. An HCM mindset views employees as company assets to be invested in so that their organizational value can be maximized. The important responsibility of HCM often falls on a company's human resources department, as they generally play a crucial role in who's hired, how efficiently talent is managed, and how seriously employee development is taken.
HCM software is a software that helps manage employees in an organisation it covers modules from HRMS and it is a broader category of HR software and covers extra features including onboarding, recruitment, talent management and performance management and people analytics to manage the workforce efficiently.
The key objective of human capital management is to train its employees so that they become efficient resources for the organisation. In human capital management, organisations treat their employees as resources that are important to the success productivity of the organisation.The acquiring, developing their skill base, managing of the individuals on key responsibility areas not only make them an indispensable resource in the future but also ensure their hundred percent contribution but also ensure team coordination, loyalty towards the organisation.
The difference between human resource management and human capital depends on their terminology where human resources treat employees as resources of the organisation who fits a specific job role and are hired specifically for working on the same. Human resource management deals with employee payroll, attendance and training etc. While Human capital management treats employees as capital that is hired for the purpose or generating more capital they treat employees as capital that are hired to increase the productivity and output of the organisation. Human capital management deals with business goals, vision and mission, change management for better performance and leadership.
Five elements of human capital management are:
The tools for creating an environment for the employee to grow and an opportunity to learn and apply innovative ideas are training to develop new skills and better prepared for the job, facilitation, coaching the employee and consulting with them.
Some of the problem are:
HRIS – Human Resource Information System is one of the basic out of all three, but very effective in carrying out HR processes such as data tracking, self-service for employees, analyzing data for better understanding and training for employee improvement, and managing benefits and compensations.
HCM – An Human Capital Management covers every module present inside the human resource information system and also offers some extra features such as onboarding which helps in streamlining the entire process of onboarding employees from clearing their interviews to assigning them to a team and Talent management module.
The benefits of HCM software are:
Here are some few tips to help you improve your human capital management: