Glossary definition

What is HCM (Human Capital Management)?

HCM (Human Capital Management)

Human capital management (HCM) refers to a systemized set of actions taken by a company in service of optimizing the value of its human resources. HCM strategy considers a company’s human resources—or employees—to be assets, and that the value of these assets can be effectively increased through strategic management. These management tactics are deployed through the use of HCM software.

The HCM definition is nearly synonymous with that of human resources management (HRM) software in modern business practice. HCM functions include any processes designed for employee recruitment, monitoring, management and development, providing users with access to employee data and providing valuable workforce reporting and analytics.

See why companies are moving in droves to a cloud-based HCM software solution.

Your comprehensive A-Z guide to understanding payroll

Learn about the key terms and concepts that will help you to manage the complexities of your payroll systems effectively and to confidently meet compliance requirements.

Download today

Transform your workforce with Sage

No matter the size of your team, Sage offers HR solutions to help you lead, manage, and engage your people.


Find out more