What is human capital management (HCM)?

human capital management

In this article, you will learn about what is human capital management (HCM)?

When a company hires the right people, manages their work groups well and increases productivity, it is called human capital management (HCM). It has gone from a mostly administrative job to one that is very important to the success of the business.

What Is Human Resource Development?(Opens in a new browser tab)

What is human capital management (HCM)?

Characteristics of human capital management

In order to manage human capital, there are a lot of administrative and strategic applications that you can use.

  • Recruitment\Onboarding\Payroll
  • Attendance and time
  • Services and benefits for retirement
  • Administration of talent
  • Analytics and training reporting
  • Compliance

Business Ethics Concepts and Definition(Opens in a new browser tab)

The Advantages of Human Capital Management

Human capital management (HCM) is a tool that can assist HR professionals in attracting, motivating, and retaining top talent. You may also be able to eliminate costly redundancies and synchronize data into a trusted source of decision-making in an integrated HCM solution.

5 Innovative Job Hunting Techniques(Opens in a new browser tab)

Challenges of Human Capital Management

Most business owners worry about overcoming today’s challenges and anticipating the needs of the future, just like you. Human capital management can assist you with the following common problems:

Talent management strategy

Throughout the employee lifecycle, there are numerous opportunities to engage your employees and align their performance with your company’s objectives.

Experiential learning

Intuitive and simple-to-use technology can boost employee productivity and boost morale.

Big data

Data can help you make better decisions on everything from optimised schedules to competitive compensation packages.

Burdens of administration

Time-saving tools and resources allow you to concentrate more on business strategy.

Integration of systems

Integrated systems can help you save time, money, and resources. They also aid in maintaining cross-border visibility.


Maintaining compliance can be made easier with good data and proactive approaches to changing regulations.

Data privacy and security

Data security necessitates gold-standard protections and reliable response mechanisms.

Scope of Business Ethics(Opens in a new browser tab)

Importance of Human Capital Management

Because payroll and HR affect every employee, your human capital management strategy is critical to your success. HCM is becoming more important as market forces change. These are some of the current trends:

  • The changing demographics of the workforce and the ability to perform work in remote locations
  • An increase in the number of contract workers and freelancers.
  • Regulations in the United States and in other countries have increased in recent years.
  • There is an increasing demand for specialised skills due to tightening labour markets.
  • Working in teams is becoming more and more commonplace.
  • Unprecedented influx of data on the labour force

Business communication Importance in the workplace?(Opens in a new browser tab)


What is Human Capital Management (HCM)? | ADP. (n.d.). Retrieved February 11, 2022, from https://www.adp.com/resources/articles-and-insights/articles/w/what-is-human-capital-management.aspx

What Is Human Capital Management? | Oracle. (n.d.). Retrieved February 11, 2022, from https://www.oracle.com/human-capital-management/what-is-hcm/

Related Posts