Human Capital Management (HCM) is a strategic approach to managing
an organization's workforce by viewing employees as valuable assets. It
involves a set of practices and tools for recruiting, training, developing, and
retaining employees to meet business goals. HCM expands beyond traditional
HR functions to include strategic areas like talent management, performance
management, and employee engagement to maximize workforce potential and
productivity.
Key components and practices of HCM
·
Workforce acquisition: Finding and
hiring the right talent, including recruitment and onboarding.
· Workforce
management: Handling daily operations, such as time and attendance, payroll,
and benefits administration.
· Workforce
optimization: Increasing employee value and productivity through strategic
initiatives.
· Talent management: Developing
and managing employees to improve their skills and performance, which includes
training and performance reviews.
· Employee
engagement: Creating a supportive environment that boosts employee morale and
loyalty, often through competitive compensation and rewards.
·
Strategic planning: Using data
and analytics to inform decisions about future workforce needs, compensation,
and other HR strategies.
