What is Human Capital Management?
Your people are one of your company's most valuable assets. The way businesses recruit, train, and manage staff can be a source of competitive advantage. Leading firms recognize this and leverage human capital management best practices to generate profitable business models, high-performing cultures, and memorable brands. Human capital management can also be described as a set of processes and technological tools that companies use to systematically improve recruiting, management, and performance. Here is a closer look at the role of this approach to planning your human resources and technology needs.
Core human resources administration
The human resources department plays a supportive role to a well-functioning company. Your human resources (HR) team and technology is responsible for personnel management, payroll, benefits administration, and other operational tasks. When your core HR functions are running smoothly, employees have a good experience and can focus on their job responsibilities. Having the right tools in place enables your HR team to manage the diverse operational aspects of their job, while devoting energy to higher value human capital management strategies. Employee self-service features reduce administrative burdens on staff and decrease costs while improving the employee experience.
Strategic human capital management
Human capital management involves identifying the right talent during the recruiting process, supporting and managing them throughout their careers, and developing an effective leadership pipeline. Companies with human capital management strategies work to maximize performance at each stage of the employee relationship. Recruiting software and processes help your HR team recruit the best talent and most qualified candidates for each position. Performance management tactics help identify leaders, manage staff reviews, and develop ongoing training and management plans that help each individual excel. Clearly identifying your leaders feeds into business and succession planning, allowing companies to promote from within and capture the full value of their investments in employee development and growth. An end-to-end human capital plan, supported by the latest in flexible and integrated HR technology, forms the basis of a high-performance corporate culture.
Data and analytics for a mobile world
Human capital management is built on the theory that your team is an asset that creates significant value for your company. That value can be strategically improved with targeted investments, whether using technology to reduce administrative friction or improving scheduling. Accurate planning requires access to detailed, real-time data on everything from benefits and compensation to time and attendance. The latest integrated technologies give managers instant insights, and the ability to look at topline information about every aspect of their business from a single interface. From tracking progress to informing future planning, data and analytics provide a sound foundation upon which to unroll a strategic human capital management effort. Today's tools also provide employees with mobile access to their information from any device.
Innovative human resources management requires the right overarching strategy, processes, and technologies, such as a human capital management solution. With this foundation, companies can then begin planning for significant growth.