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Discovering Human Capital Management & It’s Benefits

Human capital management (HCM) refers to a set of business processes that empower workers, connect workflows, and streamline daily operations within an organization. Human capital management encompasses employee productivity strategies, and the technology HCM teams use to organize data.

An HCM team or manager can benefit an organization in several ways, including:

  • Increasing productivity among employees
  • Retaining employees and keeping them engaged
  • Managing employee data
  • Enabling business growth

Human capital management is becoming increasingly important, especially as work evolves relative to COVID-19. With more employees working remotely and increased demand for specialized skills and workforce data, HCM teams and managers can offer comprehensive support across an organization and bring out the best in everyone.

HCM vs. HRM

While researching human capital management, you may have come across similar terms like human resource management. Some organizations may use these terms interchangeably, given that there is some overlap between them. Keep these important similarities and differences in mind as you consider career options:

Human capital management Human resource management
Includes traditional HR functions, as well as workforce rewards, training, engagement, handling conflict, and retention.Includes traditional HR functions such as hiring, compliance, reporting, and payroll.
Invests in employees’ professional development to ensure they provide economic value to the company.Implements learning management systems to track employee training and results.

Source: Coursera

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