Human Capital Management
Human capital management (HCM) is a business philosophy that emphasizes the enhancement of employees while viewing them as a quantifiable asset whose future value can be increased through investment.
Employees are perceived as assets that can be provided with clear performance expectations, against which they can be rated and rewarded based on their progress over time.
Human capital management involves providing employees with the tools and training needed to accomplish stated performance goals, as well as metrics for monitoring and assessing the progress made toward these goals. HCM is also typically a key component of a company’s comprehensive enterprise resource planning (ERP) system.
Human capital management is crucial for business success as workforce trends and laws add more complexity to recruitment, retention, legislative compliance and employee management. In today's workplace, workforce management success requires that HR managers act proactively rather than reactively, and HCM helps them to do so by bringing HR functions together in one accessible place, such as an HCM software suite.
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F.A.Q. about Human Capital Management
What is HCM software?
HCM (Human Capital Management) is a set of practices designed to help organizations manage, develop and acquire employees, and which regards employees as a business asset. HCM software focusses on both the administrative side of Human Resources (HR) and the strategic side of the business, helping organizations to maximize business value through its people. HCM software uses a series of applications to help automate and streamline HR processes. It is typically considered an enterprise software that is able to scale up or down depending on the size and the needs of the organization. It offers features such as time management and payroll as well as more advanced solutions such as performance management and employee engagement monitoring.
What are the main sides of HCM?
- Transactional: Including processes such as payroll, absence management, time management, benefits management, and onboarding.
- Transformational: Including processes such as talent management (recruiting, learning, performance) and business intelligence (big data, employee data management, HR analytics, and workforce planning).
What are the benefits of HCM software?
- Improved visibility over the workforce
- Consolidated HR systems
- Advanced analytics
- Improved reporting
- Attracting and retaining top talent
- Lower HR costs
- Automated manual processes
- Increased employee satisfaction
Who uses HCM Software?
Every company with a forward-looking HR strategy uses HCM software. Since companies invest in people (starting with their salaries), it makes sense for any organization to invest in Human Capital Management software.
In practical terms, there are five different categories of users:
- Employees
- Managers
- The HR department
- The C-suite
Materials
HCM - Human Capital Management
https://www.webopedia.com/TERM/H/hcm-human-capital-management.htmlhuman capital management (HCM)
https://searchhrsoftware.techtarget.com/definition/human-capital-management-HCMWhat is HCM software?
https://www.cornerstoneondemand.fr/what-is-hcm-software