Human Capital Management (HCM) helps companies acquire, develop, manage, and optimize their workforces. It helps create an environment that maximizes workforce potential by implementing a set of processes and policies around hiring, managing, and employee development.
Workforce Analytics- It is about measuring the behaviors of employees, leaders, and candidates and using resulting insights to make better decisions.
There are 3 core aspects of Human Capital Management. And they are:
- Talent Acquisition: The resources and processes needed to acquire new talent to help achieve a business objective. It also helps determine if positions are best filled with full-time, part-time, or contract positions.
- Talent Management: The next core aspect of HCM is the management and development of the workforce to increase loyalty and productivity.
- Workforce Optimization: It helps companies focus workforce efforts to maintain customer satisfaction, increase profitability and keep cash flowing when faced with changing economic conditions.
HCM software provides the following functionality:
- Centralized Payroll and Human Resources Data- Enables more streamlined processes and access to real-time data.
- Automated Recruitment- Makes the recruiting process more efficient for the recruiter.
- Talent Development and Retention- Employees can gain certifications and be rewarded and recognized for performance so that a company can retain more of its top talent.
- Management of Time, Attendance, and Benefits- Self-service capabilities help employees and managers perform a lot of the everyday jobs themselves.
- Reporting and Analytics- Give the HR leaders the ability to see the relationships between workforce performance and financial performance to make better decisions.
Benefits of HCM:
- Efficient recruitment
- High employee satisfaction
- More meaningful performance reviews
- Higher retention rates