Human Capital Management is an employee management practice that helps organizations constructively recruit, onboard, manage, and develop their employees. The aim of HCM is to maximize the value added by each employee toward organizational growth, success, and development.
By adopting the practice of Human Capital Management, you make sure that there’s no gap between your organizational goals and the skills your employees possess.
3 major aspects of Human Capital Management
Here are three major factors that’ll help you ace the HCM game:
Talent acquisition: This is a collective term used to indicate everything from pre-hiring to hiring to onboarding. Under HCM, talent acquisition strategies are developed in a way that treats candidates like customers.
Talent management: Talent management includes everything done to best manage employees, from payroll and core HR operations to running performance reviews, providing feedback, or assigning tasks.
Talent development: Talent development strategies include mentoring, coaching, training, and promoting employees to help bring out their best.
Understanding the benefits of Human Capital Management
Here are some of the benefits for your employees and organization that come from adopting HCM strategies:
Enables you to find the right candidates for your organization by giving a clear idea of all the skills that you need in future employees
Increases retention by ensuring that decisions are favorable to employees and facilitating their career growth and development
Improves employee satisfaction by empowering them to be more productive and increase their contribution
Enhances company growth and success by improving the quality of hires and the training they receive, in addition to helping identify skill gaps, facilitating more helpful feedback, and driving better employee performance.
Learn more about the basics of Human Capital Management in our HR Knowledge Hive.