Human capital management (HCM) is growing in popularity as one of the most powerful tools businesses can leverage to increase their productivity. As today's business environment becomes more competitive, companies need every advantage they can get to grow and thrive. One of the most important assets at a company's disposal is its people. Human Capital Management provides a framework that helps businesses use the latest data, improve business processes, and focus on recruiting and retaining the right people to optimize its workforce.
Here's a closer look at future trends in the HCM space and how they're likely to affect businesses.
Focusing on Strategic Workforce Optimization
An important component of a successful HCM strategy is a focus on recruiting, retaining, training, and promoting the most talented people possible. Within a human capital management framework, businesses are increasingly investing in talent management. Talent Management is a subset of HCM and represents activities such as recruiting, performance management, leadership development, compensation management, and more. By optimizing these processes and using accurate real-time data to make good decisions, companies can strategically focus their workforce to increase productivity and drive growth. At the same time, it's possible to use this information to offer management and staff the best possible work experience.
Changes in the Workforce
Fifty years ago, employment followed a clear path: become a full-time employee with benefits and a focus on climbing the corporate ladder. Today's environment is changing. Workers are increasingly entering the category of "contingent workers." Freelancing and consulting are becoming more common. Workers are increasingly seeking the flexibility of this format, while there are numerous benefits for employers as well. Businesses are looking for creative ways to meet needs while controlling the costs associated with compensation and benefits. Human capital management is allowing businesses to develop the processes and technical systems needed to adapt to a number of different changes in the workforce.
The Power of Integrated Systems
Technological systems play an important role in helping companies gather the information they need to effectively deploy HCM strategies. Many companies have failed to capture the full potential of HCM because they use different systems which don't communicate. Businesses face issues of duplicate data entry, information inconsistencies, and other errors. It's not uncommon to find providers that substitute partnerships for integration and focus on user interface but have weak underlying tools. Instead, the best tools are deeply integrated and provide management with insights across categories that include everything from compensation and benefits to time and attendance and recruiting.
Businesses that are thinking about these critical issues should consider a human capital management strategy. From optimizing processes and communication to investing in the right systems, HCM-focused businesses are giving themselves the advantages needed to thrive in the future with a highly effective, well-managed workforce.