Meet All your Business goals with Human Capital Management (HCM)
What is Human Capital Management?
Human Capital Management (HCM) views employees as an asset whose value can be enlarged through strategic management and investment. Thus, it is a process in which the human resource of a company is transformed using management to increase the value of the company and its employees.
The term HCM, refers to both the strategy and the tools used to execute the strategy.
What is the difference between HR Management Software and Human Capital management software?
Although the terms HCM and HRMS are sometimes used interchangeably, there is a distinction between the two. Human Resource Management Software focuses on the basic processes and duties linked to your organization's people or human resource activity.
HCM software deals with this too, but it typically takes it a step further by assisting your company with strategic goals such as organisational development, change management, employee engagement, and leadership development through workforce management.
Advantages of Human Capital Management One of the functions of Human Capital Management tools is to perform basic HR processes like hiring, onboarding, regulatory compliance, etc. It also helps companies in workforce and talent management and benefits them in other ways like:
1. Improves the hiring procedure
It's easier to drive top candidates to your company if you have effective human capital management. It provides hiring managers with a database of potential employees who possess the most relevant skills and expertise related to a job role.
Organisations can use human capital management to position the company as an employer ideal to work for, which helps acquire the best talent.
2. Enhances organic growth
HCM is a valuable instrument grow organically, since it can discover individual employee competencies. It accomplishes this by assisting the company in optimising internal resources in order to increase production and revenue.
This is achievable because human capital management focuses on helping employees grow and develop providing them with the skills they need to succeed.
3. Aligns roles with employee skills and capabilities
Human capital management can assist companies in matching people with roles that allow them to put their skills and talents to good use. This is due to the system's processes for assessing employees' distinctive skills and capabilities.
Employees feel satisfied at work when they are placed in positions that allow them to apply their skills.
4. Assesses where there are gaps in competencies
Human capital management is responsible for assessing gaps in the workforce's competencies. This aids the human resource department in adjusting recruitment criteria in order to fill positions that will increase the organization's capabilities to fulfil its goals.
5. Helps in employee retention
HCM helps to boost employee retention rates at companies. How? Human Capital Management puts effort on boosting the job satisfaction of employees by encouraging them to contribute the goals of the organisation with the use of their skills and knowledge.
This makes workers feel appreciated and committed to the company while also giving them a sense of belonging.
6. Provides access to relevant data
With proper Human Capital Management, mangers build and get insights into relevant data of the workforce, which is extremely useful to improve their management and to add interest and value that is relevant to employees.
This data and critical statistics can all be used to help the company adapt its tactics and procedures in order to optimize the work environment and meet its goals.
7. Provides feedback and evaluation of performance
To boost efficiency and effectiveness, human capital management develops numerous performance measurement tools. This method can assist management uncover deficiencies in training, resources, job happiness, and other factors that can affect the workforce's effectiveness through a variety of employee reviews and surveys.
The company can then utilise this data to provide feedback to all people concerned, allowing them to improve and achieve greater results.
Human Capital Management is different than Human Resource management as it takes HR management a step further and increases the overall value of a company by increasing the value of its employees. It treats employees as valuable assets of the company.
It helps employers in improving the hiring procedure, aligning roles with the skills and abilities of employees, gives access to employee insights and performance data and much more.
Furthermore, all HCM services are available on cloud through various third-party companies which can help you meet all your business needs and goals.
You can learn more on how Complygate Software could help your organisations by requesting a free demo of our software. Don’t miss the opportunity to talk to one of the members of our team and ask any questions your might have, all while seeing a live demo of our platform!.