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.