In this article, you will learn about what is human capital management (HCM)?
Table of contents
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.
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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
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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.
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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.
Compliance
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.
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
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References
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/
