search icon

Empower your people: human capital management software

Human capital management means taking care of your employee records, the needs of your workforce, and how your company approaches its talent.

Developing your company's greatest asset

To successfully manage your employees, you need to commit to consistent communication that keeps employees in the loop on what needs to be done, on who is responsible, and on keeping them updated. In addition, your business should offer a recognition program that encourages workers to go the extra mile and foster a positive work environment. If you listen to the needs and values of your employees, you'll ensure that you're providing the right incentives for a job well done. A powerful cloud-based human capital management solution can help you achieve this.

What does human capital management mean?

Human capital management (HCM) refers to the actions taken by a company to optimize the value of its human resources—simply put, its people. HCM strategy considers employees to be company assets, the value of which can be increased through strategic development, management, and investment. These tactics are often deployed through the use of human capital management software.

Standard human capital management software functions include a range of processes designed to optimize employee recruitment, monitoring, management, and development.

HCM software provides users with access to employee data and valuable workforce reporting and analytics.

Why human capital management is important

Human capital management is important because the human component of a company is essential to its function. Even within companies that rely heavily on automation, employees are necessary to monitor those processes. Proper employee oversight and development in the form of solid human capital management can make all the difference in a company’s longevity. The success of any organization depends on its people. Employees are your company’s greatest asset—and you must manage this human capital to achieve positive results.

By becoming an employer of choice, you'll find that the brightest talent in your industry will be eager to join your team. Work with the management team to foster a workplace with good supervisory skills and plenty of new challenges and advancement opportunities for employees to have a fruitful and successful HR strategy.

With a team of engaged employees, your company will benefit from increased productivity, lower turnover rates, and reduced absenteeism. Plus, when workers feel good about your company, they'll share that feeling with customers. And that can translate into increased profitability.

Human capital management vs. human resource management

The key difference between human capital management (HCM) and human resource management (HRM) is that HCM views employees as assets, while HRM refers more generally to the systems a company uses to manage its employees. HCM is a systematized approach to managing employees with the goal of increasing their value.

Since the core principle of HCM is widely accepted in modern business practice, HCM and HRM are often used interchangeably.

A single human capital management solution

A cloud-based human capital management solution supports the concept of the employment journey. By bringing together all your people into a single, secure repository, you'll unite performance management with your company’s talent development, payroll, core employee records, learning management, career planning, and more. When your human capital management processes are in one place, you can transition away from old and unreliable systems to a single solution and improve your employees' lives.

Manage your workforce in a single solution

Simplify HR operations and empower your people.

Act on workforce reporting and analytics

By using the latest data and insights about your workforce, you can ensure your decisions are based on facts and not just your intuition.

Gain insights into your workforce

Get all the information you need on your employees, their roles, professional development, compensation, and benefits, wherever and whenever you need it.

Count on a secure cloud platform

Get unmatched reliability, security, and privacy with Sage Business Cloud People.

The right HR solution to meet your needs

Sage People

The cloud-based HR and people system for medium-sized companies.

  • Multilingual HCM system with information and communication platform
  • Extensive people analytics and controlling functions
  • Comprehensive recruiting and onboarding
  • Performance and talent management
  • Configurable integration of third-party systems
  • Building on the world's leading Salesforce Cloud platform

Do you want business advice about managing your people?

Read our articles, guides, expert tips and more.

12 ways to support a better work-life balance for your employees

12 ways to support a better work-life balance for your employees

A question asked by many members of the modern workforce: How can we help employees become well-rested and happier at work?

Read more
Read more
This is why fixed asset management isn’t built for spreadsheets

This is why fixed asset management isn’t built for spreadsheets

It gets overwhelming to record and depreciate your assets correctly. Learn how ditching spreadsheets for a fixed asset software saves a headache.

Read more
Read more
How distributors can remain relevant in a direct-to-consumer world

How distributors can remain relevant in a direct-to-consumer world

Discover how distributors can remain as valued partners to brands and manufacturers that are embracing the direct-to-consumer model.

Read more
Read more
Future of Planning, Budgeting, Forecasting and Reporting Global Survey 2022 Highlights

Future of Planning, Budgeting, Forecasting and Reporting Global Survey 2022 Highlights

Explore the future of dependable business forecasting, optimizing resources, and steering your business to new heights.

Read more
Read more
Sage Book Club: 5 must-read books for entrepreneurs this summer

Sage Book Club: 5 must-read books for entrepreneurs this summer

Here are five must-read books that every entrepreneur should read this summer to unlock new perspectives, vital skills and just simply to unwind.

Read more
Read more
The evolution of HR: Everything HR Leaders should know

The evolution of HR: Everything HR Leaders should know

Explore the evolution of HR and see how the world of HR has changed, how it continues to shift today, and what HR can expect next.

Read more
Read more
Building a business with soul

Building a business with soul

Empathetic leadership is inside every great brand. Chief brand officer Duke Stump talks about how to bring it to life in your business.

Read more
Read more
Welcome to Sage Book Club!

Welcome to Sage Book Club!

We’ve teamed up with customer experience and digital marketing expert, Jay Baer. He’s sharing his top six book recommendations.

Read more
Read more

Give Feedback