Below we outline everything you need to know about HCM to get started putting it into practice at your own company.
What Is Human Capital Management (HCM)?
HCM is a term used in business to describe any strategies or practices used to manage employees. It includes recruiting, onboarding, retention, training and development, compensation, and incentives. In essence, HCM can be described as efforts to optimize an organization’s investment in its people.
The Key HCM Functions
Five essential human capital management functions must be present in your business operations if you want to satisfy the workforce.
- Human Resources – ensures all employees have access to necessary aspects of HR service delivery, such as employee engagement and compliance.
- Talent Management – involves activities such as talent acquisition and onboarding, career development, performance, and succession management.
- Workforce Management – concerns with managing a company’s workforce on a day-to-day basis. Such tasks include scheduling work shifts, work distribution, leave management, compensation, and more.
- Benefits Administration – deals with fringe benefits-related issues like retirement planning, health insurance coverage, etc., ensuring that employees are taken care of properly.
- HRIS Software – provides tools to manage an organization’s HR processes through automation and analytics. These processes can cover everything from hiring practices to timekeeping and payroll.
Benefits of Human Capital Management
Every company has a delicate balance between optimizing productivity and protecting the bottom line. Organizations use human capital management (HCM) to balance workplace efficiency and employee well-being. The benefits include:
- Streamline HR operations – HCM tools like our Quantum Integration Services framework can help improve efficiency and decrease time spent on administrative tasks such as data analysis.
- Increase operational efficiency – With streamlined HR processes in place, companies can make better decisions about their workforce, leading to increased operational efficiency across the board.
- Drive talent pipeline – HCM helps organizations identify which employees need training or development opportunities to be more effective in their current roles or find new jobs within the organization when necessary.
- Improve performance – Once employers have identified those who require further development, HCM provides tools for measuring progress and providing feedback that leads to improved performance from individuals and teams.
- Optimize retention – Employees with job satisfaction are less likely to leave an organization, so it’s crucial for employers to track turnover rates as part of their human capital strategy.
- Optimize recruitment – It may seem counterintuitive initially. Still, tracking which positions need to be filled at any given time means you’ll be ready to jump on the right opportunity.
- Higher ROI – You get a higher return on investment by using HCM tools to streamline HR operations and improve overall employee performance.
It’s every business’ goal to get the most out of its employees, but finding a clear and engaging way of doing so can be tricky. So whether you’re looking for ways to make your current staff more efficient, streamline data analysis or want help with leave management, Quantum Strategies has the solution you need.
We offer HRIS and human resources service packages tailored specifically for your businesses, with options ranging from consulting services to in-house staffing solutions. If you’re interested in learning more about what we offer, feel free to contact us today.