By: Caitland Conley
With a new decade rapidly approaching, it’s easy to trace back the changes and shifts the workforce has weathered since the start of the 21st century, in the United States and world-wide.
Technology and artificial intelligence are advancing at rates that historians and technologists could only dream of. A fully digital workforce that disrupts industries is the future of work.
Even just twenty years ago, human resources (HR) and what HR professionals did on a day-to-day basis starkly contrast with the kinds of workplace planning, benefits administration, technology, and software both enterprise companies and small businesses are using today.
That’s exactly where human capital management (HCM) comes in.
What is Human Capital Management (HCM)?
Automation is revolutionizing the traditional methods of the work world. Even though automating processes may feel more robotic at first, it actually enables a more human-centric and holistic approach, taking all parts of the employee experience into account.
HCM are the processes and practices that organize, nurture, and optimize your human resources from start to finish through all stages of the employee life cycle.
These processes (and more!) all fall under the umbrella of human capital management, in different ways.
- Recruiting, talent management, and talent acquisition
- Expense Management
- Compensation and benefits
- Performance management
- Strategic education and training to grow employee skill sets
- Reporting and analytics
When organizations view both their established and new employees as assets, rather than “liabilities” who will eventually “leave the company,” companies create a growth-centered environment that simultaneously drives employee engagement.
Ultimately, without an HCM in place, you risk having a disjointed and scattered employee experience, which can reflect negatively on your organization. It could be a sign of resistance to change and technological innovation. It could come across as if the organization isn’t interested in growing and managing talent.
HCM software gives employees their own portals into the organizational structure that can’t be achieved in a culture guide or an employee handbook alone.
HR Professionals Glossary
Any given HR team will be familiar with the following terms, but understanding how these coalesce and mingle together to provide business value is key. There are a lot of acronyms, but not to worry—we’ll break each one down for you.
- HCM: (Human Capital Management) How your organization recruits, manages, and maximizes your talent pool for optimization to drive business objectives and achievements
- HRM: (Human Resource Management) How your organization manages all things related to humans and employees in the company, specifically HR departments
- HRIS: (Human Resources Information System) A system, solution, or software that enables all HR data to be input in one centralized repository, from accounting to interpersonal management data.
- ERP: (Enterprise Resource Planning) For enterprise organizations, consolidating data into one place when you have fragmented, silo-ed software can be a nightmare. ERP is the strategic integration of multiple business processes into one streamlined process.
HCM Solutions and Benefits of Human Capital Management
A powerful HCM automates key processes in workforce planning. With robust workforce analytics, HR can make informed hiring and retention decisions based on employee data. With the right talent, it’s possible to make new hires that fit seamlessly into your organizational culture.
A few examples of HCM technology include programs like WorkDay, Oracle, Infor Cloudsuite, and many others. Here are a few of the business processes that an HCM can manage:
- Applicant tracking
- Performance reviews and employee growth or improvement plans
- Salary details, payroll, merit-based pay increases, etc.
Good technology is designed to shoulder the burden of workforce management. Employee self-service software and technology cuts out the middleman and allows employees to directly access their benefits, pose questions, and look into tax and payroll details without needing their HR personnel directly involved every single time they need something.
Benefits of this take the strain off manually updating and entering data, which lightens the load of your HR professionals. Once you have HCM systems and portals in place, you’ll have real-time updates, instead of a backlog of paperwork and red tape.
GuideSpark offers employee engagement solutions geared toward end-to-end employee engagement, whether that’s increasing workplace satisfaction or streamlining your HCM into a truly informative resource for both your employees and your executives.