Human Capital Management
What is Human Capital Management?
Human capital management (HCM) is managing a company's human resources and practices for recruiting, administrating, and developing employees optimally. When the right HCM practices are implemented, it results in attracting promising talents with needed skills, effective workforce management, increased productivity and improved company value.
Frequently Asked Questions
What components does HCM include?
Human capital management is carried out based on various components they are:
- Workforce planning
- Expanse management
- Statutory compliance
- Hiring, recruiting, and training
- Time, attendance, and payroll management
- Performance management
What are the strategies to effectively manage human capital?
Here are some of the ways an organization can implement to manage human capital effectively:
- Plan in advance
- Communicate and connect with employees
- Differentiate from your competitors
- Use advanced technology tools
- Focus on training needs
- Make efforts to improve employee productivity
How does HCM benefit the organization?
The benefit that HCM brings to the organization are :
- Cost reduction and expanse management
- Overall development of the organization
- Hiring the right person at the right place
- Qualified and skilled workforce
What is human capital management software?
HCM software is the technology tool that handles, performs, and manages all the HCM functions. Companies prefer implementing the use of software to automate and ease the process.