Human Capital Management

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Time to Hire

Cut time to hire by 50%

Be the recruiting hero hiring managers dream of

Sourcing

Reduce candidate sourcing time by over 90%

Instantly discover high-quality passive candidates

Screening

Accelerate time to interview 
by 85%

Spend time connecting, not screening

Expert & Executive Search

Pinpoint talent with specialized hard to find skills

Uncover Hidden Gems

Diversity, Equity & Inclusion

Triple the diversity of your talent pipeline

Eliminate unconscious bias in sourcing

Team ROI

Reduce TA costs up to 75%

Boost your recruiting ROI

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Dennis Wilson
National – Director, Talent Attraction & Acquisition, American Heart Association

Human Capital Management

Human Capital Management (HCM) is the management of an organization’s intellectual resources. HCM enables human resources to contribute their knowledge and skills efficiently, resulting in improved workforce collaboration across the organization. An HCM system aligns better with a business strategy, allowing human resource managers to achieve organizational goals.

HCM is seen as a critical success factor for achieving competitive advantage in the future professional workforce where HCM must be human-centered, collaborative, and innovative in its practices.

The HCM function in human resource management is a set of processes that link human resources to an organization’s strategic aims and tactical activities. It aims to maximize human capital, defined as the knowledge, skills, competencies, and experiences employees bring to their jobs. The management function seeks to ensure human resources are appropriately applied, maintained, utilized, and aligned with the enterprise’s strategic direction. It accounts for human assets at all levels of an organization by aligning human resource activities with business strategy.

HCM offers a wide range of benefits, including higher retention rates and greater efficiency across departments through increased human resource knowledge. HCM also allows for rapid growth in different departments when human capital is managed more strategically.

What Is Human Resources Management?

Human Resources Management (HRM) is an organization’s human (and financial) capital. It refers to the human services organizations provide and the people who provide them. HRM culture refers to how human resources management within an organization is undertaken, what strategies and practices of human resources management result in a healthy and productive workplace, and how human resources management delivers results.

HRM culture can vary greatly depending on the size and nature of an organization – strategies and practices may be radically different for a small nonprofit agency than for a foreign subsidiary of a large global corporation.

Although HRM is often thought of as providing benefits or HRM practices, HRM culture also includes strategies and visions. HRM culture is an organization’s human (and financial) capital working together with a common purpose toward an organizational vision.

For example, the HRM strategy of an extensive national organization might be to provide human resources services that are currently provided regionally across the country through regional centers. While HRM members would remain employed by the organization, HRM members would report to a manager in a human resources management region.

Organizational culture is the personality of an organization and its human and financial capital’s shared values, beliefs, and behaviors. HRM practices should reflect organizational culture if they are going to be effective.

Human Capital Management Software

Human Capital Management Software is software used to manage human capital in a business. This helps businesses track who they have, who is leaving or retiring and helps them plan for future needs.

Some programs offer human resource management (HRM) software features, including payroll, holiday/vacation tracking, time-off requests, benefits management, etc. In contrast, others may offer additional human capital management features, including career management, human resource career portals, competency modeling, and talent analytics.

The human capital management software market was estimated to be worth $1.96 billion in 2013 and is expected to reach $2.64 billion by 2020, growing at a CAGR of 5.5%. The human capital management software market has been segmented into human resource management (HRM), human capital performance management (HCPM), and human resources services. The human resource management segment is expected to be worth $1.51 billion in 2013, growing at a CAGR of 5.8%.

The human resources services category encompasses recruiting, consulting, and outsourcing services. The human capital performance management software segments human capital performance and human resource intelligence.

The human resources services segment is expected to be worth $209 million in 2013, growing at a CAGR of 9.9%.

Human Capital Performance Management

Success in human capital performance management requires accurate human capital data. Human resources managers cannot make informed decisions when developing departmental strategies without human capital data. Human resources managers can determine the best ways to optimize their human capital strategies for increased efficiency and optimal returns on investment with human capital data.

Human Capital Management – A Strategic Resource

Human capital management is about human resources. It’s not just a department within an organization; human capital management is the strategy that drives every other decision in corporate America. For this reason, human capital management can make or break a company’s bottom line performance. Human resources managers cannot make informed decisions when developing human capital strategies without human capital data. Human resources managers can determine the best ways to optimize human capital strategies for increased efficiency and returns on investment with human capital data.

Performance Management: A Core Function of Human Capital Management

A big part of human capital management is performance management. Performance management helps human resources professionals stay in touch with their workforce, stay accountable for human resources analytics, and plan human capital strategies accordingly. It is more challenging to make decisions about human capital management without human capital analysis.

Human Capital Management Is About Data

Since human capital management is more than just a department within an organization, human resources managers need human capital data to make informed decisions when human capital strategy. Human resources knowledge without human capital data hinders managers from achieving optimal human capital performance management.

Human capital data is important for human resources managers, but it is also critical. Without human capital data, organizations cannot meet their bottom lines. Organizations need to track how human capital performs to ensure human resources strategies will succeed in human capital performance.

Human Capital Management Strategies

Human capital management strategies help human capital development by providing human resources professionals with the tools necessary to make wise human capital decisions. While human capital strategy requires human resources managers to look at their organization as a whole, these strategies can be broken into three main areas: hiring, retention, and performance management.

When developing human capital plans, human resources managers should consider human capital trends, human capital market values, human capital costs, human capital structure, and human capital processes.

Human Capital Trends

When developing human capital strategies, it is vital to look into the future. This means that HR managers must take account of emerging trends in their industry that could affect human resources planning. For instance, the aging human capital population will result in more human resources requests for information by increasing human resource training initiatives.

Human Capital Market Values

When creating human capital strategies, human resources managers should look at the human capital market values of their human capital. These can be seen online, where companies offer statistical reports on wages and human capital market values. By understanding human capital market values, human resources managers can predict human capital trends, such as whether human resources salaries are outpacing inflation rates.

Human Capital Costs

When developing human capital strategies, human resources managers must also consider human capital costs. For instance, when hiring new employees, it’s essential to look at the human capital costs associated with each human capital strategy. Suppose human resources managers are looking to hire new human capital. In that case, they should consider the human capital costs of training new human capital and an increase in human capital salaries required after hiring new human capital.

Human Capital Structure

When developing human capital strategies, human resources managers need to look at the human capital structure. This means that human resource managers should assess the capabilities and competencies of human capital in their human capital structure, whether they are part-time or full-time human capital, and what roles each human capital plays within their organization.

Human Capital Processes

The human capital process is the process of managing people. They are often used to make an organization run smoothly. This includes talent acquisition and talent management. The human capital process begins when an organization identifies its needs for talent and develops a plan to fill the talent gaps. This process is used to help people grow and develop within the company.

The talent acquisition and talent management functions play a vital role in supporting an organization’s business strategy through effective workforce planning, performance management, talent development, and leadership readiness. The difference between talent acquisition and talent management is that talent acquisition focuses on attracting talent to the organization, while talent management ensures that talent stays.

Talent acquisition aims to bring in top talent through active engagement during the hiring process. In contrast, talent management ensures the retention of valuable employees through training and development opportunities. They also differ in their scope; recruiters often handle talent acquisition, whereas talent professionals and line managers may manage talent management.

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